FREQUENTLY ASKED QUESTIONS

Many school districts in the State of Michigan typically seek approval for bond proposals every 5-10 years. This allows for significant building improvements to occur and keep district facilities current. The last successful bond proposals passed in the Bronson Community Schools District were in 1986 and 1997. The Board of Education and district administration would like to pursue a bond proposal in order to gain momentum on implementing major facilities updates. The desire for continuous facilities improvements is driven by the district strategic plan. Overall, a key goal for the district is to create safe and caring environments that develop the whole child. Due to the size and scale of school buildings, maintenance, updates, and replacement of facilities is costly and often not possible through the traditional funding received by school districts. Our district has a number of growing needs that require large sums of money to undertake. The Board of Education has determined that a bond proposal is their approach to making the significant updates and improvements needed at BCS.

Schools receive funding from a number of sources. A simple breakdown of the sources is as follows: Foundation Per Pupil Allowance* The State of Michigan provides a per pupil amount of funding to school districts. Currently, the amount received per pupil is $9,608. Operational Millage (Non-Homestead tax levy)** This is a voter-approved tax levy that provides operational funding to support the annual school budget. The current Non-Homestead levy in the Bronson Community Schools District is 17.73 mills. These are taxes paid by owners of commercial properties, investment properties and residential properties that do not serve as the owner’s primary residence (rental properties and vacation properties). * Staff salaries and benefits account for approximately 80-85% of the use of Foundation Allowance and Operational Millage funding. The remainder of these funds are typically used for operational costs of educational programs, building maintenance and operation costs, and supplies. This leaves very little funding available for facility improvements. # In the State of Michigan, there is not adequate funding for major school infrastructure projects included in the Foundation Per Pupil Allowance. Funding for school infrastructure improvements is obtained primarily through local voter support. Voter-Approved Sinking Fund Millage Voter-approved sinking funds provide an annual collection of taxes based on property values. Typically, the collection provides a smaller amount of funding that allows for minor facilities improvements and renovations. Under new legislation, sinking funds can pay for student technology, safety/security improvements, and student transportation vehicles. Sinking funds cannot be used for the purchase of furniture or equipment. Bronson Community Schools currently levies a 5-year, 1.97 mill sinking fund millage that was renewed by voters in November of 2023. Voter-Approved Bond Proposal A bond proposal is a borrowing process for a set scope of projects. When voters approve a bond proposal, the school district sells bonds in the authorized amount and uses the proceeds of the sale to pay for those projects identified in the bond proposal. Bond proposals provide a funding source for larger-scale facility improvement projects. In many ways, the bonding process is like a homeowner obtaining a mortgage and making payments over a period of years. The current levy for bond debt in the Bronson Community Schools District is 0.00 mills. The proposed debt levy associated with the May 2025 proposal is estimated to increase the debt millage tax rate by 4.98 mills.

The Millman Trust funds (approximately $450,000) were intended to support the students of Bronson Community Schools. $50,000 was used to establish an endowed scholarship fund with the Branch County Community Foundation. This scholarship will be offered to future BHS graduates for years to come. $384,048 was used to purchase student furniture for all students district wide. $20,000 was used to offset the cost of one of the new vans purchased by the district to support BCS students experiencing homelessness and smaller groups of students to academic and athletic contests.

No, by law, bond proposal funds cannot be used for employee salaries and benefits or student programming. They also cannot be used for repair or maintenance costs or other operating expenses. Bond proposal funds must be used only for purposes specified in the ballot language, and as required by state law, they must be independently audited.

We have made every effort to be good stewards of the dollars provided through the renewal of the sinking fund. People often wonder why our levy is higher compared to some of the larger surrounding districts. The simple answer is that our tax base is smaller comparatively and requires us to levy a higher millage rate to generate funding through bonds or sinking funds to support facilities projects. The graph below highlights the comparison of the revenue generated per 1 mill of levy with many of our neighboring and comparable districts.

If approved, the ballot proposal would allow the district to sell bonds in the amount of $32.33 million requiring an estimated 4.98-mill net increase over the current debt millage of 0.00 mills. With a successful bond election, the Board of Education intends to reduce the sinking fund levy to 0.99 mill (reduction of 0.98 mills). This will result in an estimated change in the net total levy(combination of sinking fund millage and debt millage) of 4.00 mills over the 2024 total levy. The 4.00 mill net total levy is arrived at as follows: November 2023 Sinking Fund Levy 1.97 mills May 2025 Bond Proposal 4.98 mills (expected) Subtotal 6.95 mills less B.O.E. Reduction of 2023 Sinking Fund Levy 0.98 mills Total Levy 5.97 mills (4.00 mill net tax increase) Use the calculator below to better understand the impact of the 2025 bond. Tax Impact is based upon Taxable Value. Be sure to enter your Taxable Value when using the Tax Calculator. Tax Calculator: https://pfmtaxcalc.com/BronsonCommunitySchoolDistrict/default.aspx Approximate net tax impact by home value ($212,780 = median home value in Bronson Community School District): Some community members may be eligible for the Michigan Homestead Property Tax Credit. This tax credit indicates that households that pay homestead property taxes greater than 3.2% of their annual income may be eligible. Eligible households may deduct up to 60% and senior citizens may be eligible to deduct up to 100% of the millage increase cost up to a $1,800 Homestead Tax Credit limit. The eligibility for the credit begins to decrease after the household income exceeds $60,701 and ends completely after the household income exceeds $69,701. To understand how this applies to your situation, please consult your account or tax advisor or preparer to determine the actual impact on your taxes. General Credit Reduction Senior Credit Resources % of credit Resources % Credit $60,700 100.00% $21,000 100% $60,701 90.00% $21,001 96% $61,701 80.00% $22,001 92% $62,701 70.00% $23,001 88% $63,701 60.00% $24,001 84% $64,701 50.00% $25,001 80% $65,701 40.00% $26,001 76% $66,701 30.00% $27,001 72% $67,701 20.00% $28,001 68% $68,701 10.00% $29,001 64% $69,701 0.00% $30,001 60%

The millage will impact all real properties that you own that are located within the Bronson Community Schools District boundary.

The bonds may be sold in series. A series bond means that voters are asked to approve the overall bond amount once at the May 6th, 2025 election. Approval at this election authorizes the district to sell bonds up to the amount of $32.33 million over the next few years. Timing of the sale of bonds is monitored and suggested by the district’s financial manager, PFM Financial Advisors. Following a successful election, the first series would be sold in 2025 and the second series is anticipated to be sold in 2027 and a third series in 2028. This approach is an opportunity to save in interest costs, and it also staggers cash flow for the project, so it is received when needed for construction to align with the potential staggered start and completion dates of the proposed projects.

As part of the proposal, the current kitchen and gym at Anderson would be expanded to support additional students and efficiently flow student traffic during meal times.

Bronson Community Schools is committed to a process of creating and maintaining a proactive approach to updating facilities. Continually evaluating and monitoring school facilities helps to protect the community’s investment in its schools. A comprehensive effort has been made early in the process to identify current facility needs while also identifying and anticipating future needs through the creation of a long-term facilities plan. Facilities are a major component in creating environments that prepare students for competing in an ever-changing world. During the early fall of 2019 and early winter of 2020, working with architectural, engineering and construction specialists, the school district completed an in-depth facility study. The study identified districtwide facility needs and has helped inform the proposed direction of the bond proposal. Overall, there were approximately $31.2 million dollars of total facilities recommendations indicated in the report for Anderson Elementary, Ryan Elementary, and Bronson Junior/Senior High School. All costs identified are based upon 2020 construction market values. A summary by building is as follows Anderson Elementary Priority 1 Recommendations $3,458,689 Priority 2 Recommendations $2,123,470 Total Priority 1 + 2 Recommendations $5,582,159 Building Replacement Cost $9,868,163 FCI Index (Total Recommendations / Building Replacement Cost) 56.6% Ryan Elementary Priority 1 Recommendations $3,408,407 Priority 2 Recommendations $2,338,583 Total Priority 1 + 2 Recommendations $5,786,991 Building Replacement Cost $8,304,525 FCI Index (Total Recommendations / Building Replacement Cost) 69.2% Bronson Junior/Senior High School Priority 1 Recommendations $6,840,611 Priority 2 Recommendations $6,815,718 Total Priority 1 + 2 Recommendations $13,656,329 Building Replacement Cost $33,656,326 FCI Index 40.6% Chicago Street School Priority 1 Recommendations $3,314,880 Priority 2 Recommendations $2,868,479 Total Priority 1 + 2 Recommendations $6,183,359 Building Replacement Cost $11,319,413 FCI Index 54.6% TOTAL ALL RECOMMENDATIONS $31,190,741 In late spring of 2023, conversations with staff and the Board of Education identified additional thoughts for advancing the facility offerings as they relate to the educational needs and goals of the district. An all-staff survey was conducted in addition to these conversations to allow for input from all roles within the district. Many of the items that were shared were beyond the maintenance and upkeep needs identified in the facility study and were focused on projects that help support educational programming needs. As ideas and scenarios were studied for a potential bond proposal, additional input was provided by a community-based steering committee during the summer and fall of 2024. Input received was critical in testing potential scope ideas for a bond proposal along with gaining feedback on the financial impact to the community.

Key Priorities of the Established Bond Scope Include: Enhance the Elementary Education Experience – Our elementary buildings have the greatest needs when it comes to facility assessment upgrades and lack of adequate programming space to support elementary education needs of today. The proposed bond scope includes a new addition to Anderson Elementary with the intent of converting the building from the current K-2nd grade configuration to a K-5th grade configuration that allows Ryan Elementary to be closed due to the high list of facility needs that need to be addressed. The updated Anderson Elementary would include the following features: Anderson Elementary New Addition Highlights: Improved Office Presence/Visitor Flow – The main office would be placed within the new addition along with a secure vestibule that would require visitors to flow directly through the main office for improved safety/security. The placement of the office would allow for good visibility from the office to the main entry and to the parent and bus drop-off and pick-up loops. Educational Programming Upgrades – The new addition would include new dedicated Art and Music rooms that would be equipped with the proper amenities to support the curriculum. Current instruction is provided in converted standard classroom spaces that are not outfitted with many of the needs for these programs. New space would also be provided for the many academic specialists that provide academic support for our students. Currently many of these activities these specialists provide are occurring in the classrooms, hallways and converted closets that are not conducive to focused interaction with students. Facility Flexibility – The Cafeteria and Gymnasium in the current facility are housed in the same space. This limits the amount of time physical education can take place due to the demand for student breakfast and lunch activities. The bond proposal would include a new gymnasium that would allow for greater access and use for physical education. In the times where the cafeteria isn’t serving student meals, it could be utilized as another large group instruction space for the building. The new gymnasium would also be sized to accommodate a full size basketball court and two volleyball courts which would give the district additional after hours space for athletics practices and community events. Anderson Elementary Existing Building Renovations: Thermal Comfort and Air Quality Improvements - Mechanical systems would be upgraded to provide air conditioning, creating year-round comfort for students and staff. New temperature control systems would be installed to provide greater monitoring and adjustment of the mechanical systems. The new mechanical systems would improve ventilation in the building providing better air quality throughout for healthier interior environments. Energy Efficiency Upgrades – Energy savings improvements allow the district to divert funding from operational costs toward items that will directly affect education and have student impact. The proposed bond scope includes a number of infrastructure and energy efficiency upgrades. Window + Door Replacement – Window systems in the existing portions of Anderson are poor performing single-pane systems. Replacement of these systems would occur and new systems with thermally broken frames and high performing low-E insulating glass would be installed. Select doors that are poorly performing are also slated for replacement. Mechanical Controls Systems Replacement – As part of the mechanical systems replacement, we would look at installing higher-efficiency equipment. Upgrades to our mechanical systems would include updated building controls that would allow for greater monitoring and control over energy use. The current system does not allow for any monitoring or control which can result in significant energy costs. Additional Infrastructure Upgrades – Electrical service upgrades are planned in order to provide additional electrical capacity in the building, specifically related to additional capacity required to support air conditioning. Athletics Sites Upgrades – Athletics upgrades are proposed at the stadium and tennis complex. The upgrades would provide improved facilities to support our student athletes and would benefit the broader community. These improvements would allow us to host home events which have been unable to take place for many years. Stadium Upgrades– Upgrades at the stadium would consist of new stadium lighting (high efficiency LED) mounted on new poles. The current 6-lane track would be removed due to the poor condition. A new 8-lane track would be constructed which will allow for track meets to be hosted at our facility. Conversion to a metric track (current track is yardage based) would also allow us to be eligible to host MHSAA sanctioned events. Tennis Court Replacement – The current tennis courts are in poor condition and do not provide a safe, playable surface. New post-tensioned concrete courts would be installed. The post-tensioned approach would help provide a more durable, long-term solution for the courts. The courts would serve district athletic programs and would also be a community asset.

Combined, the proposed new addition and existing Anderson square footage would equate to 71,000 square feet. The cost of building a new 71,000 square foot building would be in the range of $39.0-$42.5 million. The millage increase required to generate this funding would add a significant burden to our taxpayers and the Board determined that this request was too large to take to the voters. The decision to renovate and expand Anderson was also driven by the much higher FCI rating of Ryan elementary that was identified as part of the facilities assessment. Anderson provided a more cost-effective option based upon the lower FCI rating.

This has not yet been decided and the Board will be looking at options when it comes time to decide what to do with the vacant building. The cost of tearing down Ryan Elementary is not part of the bond proposal. What happens to the building/surrounding property is something that has not been decided. If the bond proposal is approved, we will consider options and decide at that time.

Total Bond Amount = $32,330,000 Election / Issuance Costs = $504,133 Interest Earnings = ($274,133) Estimated Cost % of Bond Fund Distribution Total Available for Projects $32,100,000 Anderson Elementary Addition $28,479,141 88.72% + Renovations Athletic Sites Upgrades $3,620,859 11.28% Anderson Elementary Investment = $28,479,141 New Addition Building Construction = $19,896,993 Sitework = $3,415,932 Renovations Kitchen / Cafeteria Renovation = $1,279,361 Window / Door Replacement = $1,352,114 Mechanical / Temperature Controls = $1,203,608 Furniture = $831,133 (this does not include student furniture, as the furniture purchased last summer with the Milliman Trust funds will continue to be used) Technology = $500,000 Athletic Sites Investment = $3,620,859 Track Replacement = $1,434,159 Stadium Lighting Replacement = $578,823 Tennis Court Replacement = $1,607,841

Yes, representatives of local law enforcement and emergency management organizations will be brought in early into the design process to gain feedback on how the facilities design could best support safety, security and access for emergency response personnel.

An overall project schedule that includes designs and construction dates hasn’t been finalized. The timelines and sequencing for the various projects would be based upon further analysis by our architectural and construction management teams. The preliminary breakdown of projects by series is as follows. This also is subject to change based upon advice from the architectural and construction management teams. Timing for the Series 2 and Series 3 bond sales would be monitored by the district’s financial manager and the actual timing would be determined at a later date after further analysis of market conditions. PROPOSED SERIES 1 WORK – Bonds to be sold in October 2025 Design for the Athletic Sites Upgrades would be anticipated to begin. Design activities would also begin for the elementary addition. Anticipated construction start date for both projects would be expected to be in the spring/summer of 2026. Anderson Elementary - Anticipated Projects (New Addition) Prepare site for new building addition construction Prepare site for parking lots and drives, install base coat of asphalt and concrete walkways Construct new addition main structural elements (foundations, steel frame and bearing walls) Bronson Junior/Senior High School – Athletic Sites Replace stadium lighting Replace the existing track with a new 8-lane track Replace existing tennis courts with new post-tensioned concrete courts PROPOSED SERIES 2 WORK-Bonds anticipated to be sold in May 2027 Anderson Elementary School – Anticipated Projects (New Addition) Construct remainder of new addition – exterior enclosure (roofing and walls), interior walls and interior finishes, HVAC and plumbing systems, electrical systems and technology infrastructure Bronson Junior/Senior High School – Athletic Sites No projects anticipated PROPOSED SERIES 3 WORK-Bonds anticipated to be sold in May 2028 Anderson Elementary School – Anticipated Projects (Existing Building Renovations) Interior renovations to allow for expansion of cafeteria Interior renovations to allow for expansion of kitchen/serving area Classroom mechanical unit replacements for consistent heating and air conditioning Replacement of building temperature control system to improve system monitoring and energy use Replacement of single pane windows and select exterior doors for better energy efficiency of the building exterior Cafeteria and office furniture Anderson Elementary School – Site Upgrades Final asphalt paving and concrete walkway construction Playground equipment installation

The amount of work being proposed in the bond proposal is significant. As such, our Construction Management partners believe it to be the best practice to stagger the implementation of the projects. This would allow for greater contractor participation and will not overstress the construction market which currently is struggling with labor availability. Greater participation of bidders should result in greater competition and better bid results.

The budgeting that has been provided for the proposed bond scope is based on current market conditions. Going forward, the costs include typical yearly escalation factors and construction contingency funds for unforeseen conditions that are encountered during construction. The district would work to preserve the projects as originally presented to the community during the pre-bond planning phase. In the event unexpected market conditions arise, the district intends to implement projects in order of highest priority to lowest priority and would be fully transparent about any change in plans that may be necessary due to elements outside of their control.

When the original sinking fund millage was approved by the district’s electors in 2014, we committed to updating progress of the improvements made with the funds. Sinking Fund revenues must be maintained separately from all other school funds and must have an annual budget and an independent audit. A new sinking fund millage was approved by voters in 2018, and was renewed in 2023. We’ve continually provided our constituents with a list of the improvements made with the Sinking Fund revenues through our newsletters and social media channels. To date, here is a list of the sinking fund projects we have been able to complete:

Residents within the Bronson Community Schools district who will be 18 years of age or older on Election Day and are registered to vote.

Go to the Michigan Voter Information website www.michigan.gov/vote or call the Clerk’s Office where you reside.

You need to update your voter registration if you have changed your name or address since the last time you voted. You can do this at any Secretary of State Office or at the Clerk’s Office where you reside.

Yes, registered voters do not need a reason to vote by absentee ballot. You can request an absentee ballot application from your Clerk’s Office or by going online to www.michigan.gov/vote and clicking on Absentee Voting in the left column. Absentee ballots should be available to voters no later than March 27, 2025, and may be cast through Election Day.

The ballot language does not call out the specifics of the projects being proposed as part of the bond, however it does highlight the focus on improvements at Anderson Elementary. The project language is written in accordance with state statutes and is shown in the indented paragraph. The third paragraph highlights that the debt levy associated with the bond proposal will require an estimated 4.98 mill increase over the 2024 levy.