Avondale School District Replacement/Restoration of Non-Homestead Operating Millage
Avondale School District
Replacement Sinking Fund
If the General Operating Fund Millage is not passed by voters, will my tax rates go down if I'm a homeowner?
No. The General Operating Fund Millage is a tax on non-homestead properties, not primary residences.
What does Non-Homestead mean?
Non-homestead property includes all taxable property within the district with the exception of a family's primary residence. Non-homestead property includes industrial, commercial and some agricultural property and "second homes".
Why does the ballot language ask for more than 18 mills?
By law we cannot levy more than 18 mills, even if it is voter approved. Like many other districts, Avondale School District is requesting voter approval for the authority for more than 18 mills to guard against losing money due to a roll back in millage rate caused by the Headlee amendment. By approving over 18 mills, voters can help guarantee a more stable budget for the district by ensuring the district is able to collect taxes on non-homestead property at the full 18 mills.
I thought schools no longer received funding through property taxes so why are we talking about a millage renewal?
Funding for school districts changed significantly in 1994 when Proposal A was passed by the Michigan voters. Under Proposal A, the State pays the majority of the cost, but to receive full state funding, schools MUST levy taxes locally on non-homestead property in their District.
Why do school districts need Sinking Funds?
Sinking Funds are key components of school districts' long-term facility maintenance and repair plans. They support projects and emergencies outside the scope of enhancements and renovations that come about because of advancements in education delivery. Without Sinking Fund dollars, costs associated with roof and parking lot replacement (for instance) would have to be absorbed within the operating budget which would cut into dollars needed in the classroom.
How will the referendums appear on the ballot?
REPLACEMENT AND RESTORATION OF NON-HOMESTEAD OPERATING MILLAGEThis proposal would authorize Avondale Public Schools to continue to levy up to 18.00 mills for general school district operating purposes only on non-homestead property (business, commercial, rental and seasonal homes) in the School District. Principal residences are exempt from this millage. This authorization would (i) replace an authorization previously approved by voters which expires with the School District's 2017 tax levy; (ii) restore the authority to levy mills previously authorized which has been reduced by 0.0432 mill by application of the Headlee Amendment; and (iii) increase the prior authority by two mills. This authority would allow the School District to levy only that portion of the mills against non-homestead property required for the School District to receive revenues at the full foundation allowance permitted by the State in the event of future Headlee rollbacks.
Shall the limitation on the amount of tax upon taxable property in the Avondale School District, Oakland County, Michigan be increased by 20.00 mills ($20.00 per $1,000 of taxable value) for ten (10) years 2016 to 2025, inclusive, to provide funds for operating expenses of the District? If approved, this millage would raise an estimated $7,000,724 for the District in 2016.
REPLACEMENT SINKING FUND MILLAGE PROPOSAL
Of the 1.00 mill requested, 0.5993 mill constitutes a continuation of authority which would have expired with the 2017 levy, as reduced by operation of the Headlee Amendment, and 0.4007 mill constitutes new additional millage which would restore authorization reduced by operation of the Headlee Amendment.
Shall the Avondale School District, Oakland County, Michigan, be authorized to levy 1.00 mill to create a sinking fund for the purpose of the construction or repair of school buildings and the improvements and development of sites and for any other purposes which may be authorized by law for the use of sinking fund proceeds, by increasing the limitation on the amount of taxes which may be imposed on taxable property in the School District for a period of ten (10) years, being the years 2016 - 2025, inclusive? It is estimated that 1.00 mill ($1.00 per $1,000 of taxable valuation) would raise approximately $905,472 in 2016.
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