FUNDING
Why do we need a bond proposal?
Many school districts in the State of Michigan typically seek approval for bond proposals every 5-10 years. This allows for significant improvements to occur and keep district facilities current. The last new bond proposal brought to the Eau Claire Public Schools district voters was a successful election in 1999.
Through a recent strategic planning process, The Board of Education and district administration have identified a key goal to be that Eau Claire Public Schools will take pride and ownership of school facilities in order to provide a safe, appealing and welcoming environment to the community. Upgraded facilities that support education for our current and future students will be a major component in achieving this goal.
Due to the size and scale of school buildings, maintenance, updates, and replacement of facilities is costly and often times 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. A bond proposal is the best approach to making the significant updates and improvements needed at EPS.
What funding sources are available to schools?
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 $10,050.
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 Eau Claire is 18 mills.
* Staff salaries and benefits account for approximately 80-85% of the use of Foundation and Operational Millage funding. The remainder of these funds are typically used for costs of educational programs, building operation costs and supplies. This leaves very little funding available for facilities improvements.
Voter Approved Sinking Funds
Voter approved sinking funds provide an annual collection of taxes based upon property values. Typically, the collection provides a smaller amount of funding that allow for minor facilities improvements and renovations. Sinking funds cannot be used for the purchase of buses or furniture. Eau Claire Public Schools currently does not levy a sinking fund.
Voter Approved Bond Funds
A bond is a state-approved 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 are most useful when a district needs a large funding source for 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 Eau Claire Public School District is 0.00 mills.
Can any of the bond proposal funds be used for employee salaries or operating expenses?
No. Bond proposal funds cannot be used for employee salaries. 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.
How does our current millage rate compare to other districts?
Since there isn't a current bond millage in Eau Claire, our bond debt is currently at 0 mills. The only other school district without a current bond millage in place is Covert (not including Bridgman, New Buffalo, or River Valley, with community tax bases so large as to put them in a different category). Every other nearby school district has a bond millage in place. See the chart below:
We appreciate the continued investment the community has made in our school district and have been mindful of minimizing our impact to taxpayers by keeping a reasonable levy compared to many surrounding districts.
What is a mill?
One mill equates to 1/1000th ($1 per $1,000 of tax assessed value) of a property’s tax assessed value. Tax-assessed value is approximately ½ of the market value of a property. In the case of the proposed 2.39 mill levy, a sample calculation of the millage impact on a $200,000 market value home is as follows:
$200,000 market value home = $100,000 tax assessed value
$100,000 x .00239 = $239 per year or $19.92 per month
Homeowners can refer to their latest tax statement for their home’s tax assessed value. See the chart below for some additional information:
Why was the August 2024 bond a 0-mill Bond Proposal and the November 2025 proposal a 2.80 mill increase?
The 2024 tax rate of 2.80 mills was estimated to remain the same had the bond proposal been approved by voters on August 6th, 2024, since there was already a bond in place. Following the failure of that proposal, the tax rate reduced to 0.00 mills after the expiration of the previous bond debt. Feedback from the community and from the Board of Education suggested that the November 2025 proposal seeks to request a levy that is no greater than the levy was in 2024.
But, any new bond proposal would legally be shown as an increase due to the current levy being 0.00 mills.
How would the bond proposal affect my taxes?
If approved, the ballot proposal would allow the district to sell enough bonds resulting in the desired mill increase. The bond would not be responsible for changes in market conditions such as rising property values/assessments. The amount of tax paid could potentially change due to these variables that are not driven by the bond proposal tax impact. In short, the more valuable your property is, the more of a tax increase you would experience.
If I own multiple properties, how does the millage impact me? Does it only apply to my primary residence or business?
The millage will impact all properties that you own that are located within the Eau Claire Public School District boundary.
How will my home value be affected if the bond is approved by voters?
Research shows that real estate values tend to be higher in communities with school district that offer quality educational programming and have up to date school facilities.
VOTING
Who can vote in this bond proposal election?
Residents within the Eau Claire Public School district who will be 18 years of age or older on Election Day and are registered to vote.
Where can I get information about voting (such as how to register, where to vote, and absentee voting)?
Go to the Michigan Voter Information Center or call the Clerk’s Office where you reside.
Do I need to update my voter registration?
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.
Can I vote by absentee ballot?
Yes. Since voter approval of Proposal 3 in November 2018, 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 to the Michigan Voter Information Center (click on "Apply for an absentee ballot online" in the left column).
Absentee ballots get sent in the mail before an election and may be cast through Election Day.