Frequently Asked Questions- 2024 Bond
Here you will find concept images of a potential new multipurpose athletic facility at Flushing High School.
For larger images of the potential new multipurpose athletic facility.
I was not able to make it to one of the Community Information Meetings. Can I still view the information presented?
When and where do I vote?
- Voting takes place on May 7, 2024
- Eligible voters report to their regular polling places
- Absentee ballots can be requested through your clerk's office
What security features are included?
- Updated alarm/door entry systems
- Additional security cameras
- New secondary entrances
- Installation of ballistic film in many of our entrances
What instructional improvements will be included?
- Substantial investment in updated instructional technology in classrooms, including interactive technoloy to aid in student learning
What elementary playground enhancements will be included?
- Emphasis and priority on the extensive playground asphalt needs
What auditorium improvements are planned?
- Sound and carpet upgrades
- Stage improvements
- Lighting upgrades
What HVAC are planned?
- Air-conditioning areas that were not included in the last bond - mainly the gyms and cafeterias throughout the district
What athletic facility updates are expected?
- Updates and renovations to the current outdoor athletic fields (ie soccer, baseball, softball) and tennis courts
- Construction of a multi-purpose outdoor stadium located on the high school campus that includes artificial turf and a track
- Newly constructed out-buildings, such as restrooms, concessions, and locker rooms
What is the architectural rendering of the athletic complex?
How does Flushing's current millage rate compare to neighboring districts?
I hear other nearby districts have passed bonds recently. How does Flushing's request compare to those?
I've heard that many districts have a "Sinking Fund" to help with Maintenance or repair in their school buildings. What is a Sinking Fund and does Flushing currently have one? If they do, how much is raised every year and what is it spent on? Can it be used to fund some of the needs that are in this bond proposal?
A sinking fund is a savings account into which a local school district can deposit voter-approved local millage revenue in order to pay cash for projects or repairs as they arise. Sinking funds provide districts with a cost effective way of covering necessary repair expenditures. A school district that levies a sinking fund tax has an independent audit of its sinking fund conducted annually, to make sure that every dollar collected is spent on allowable district items. A school district can put a sinking fund initiative on the ballot to be approved every 5-10 years at a rate not to exceed 3.0 mills annually.
Historically, Flushing Community Schools voters have overwhelmingly approved our Sinking Fund requests of .75 or ¾ of a mill. A sinking fund of ¾ mill has been approved every 5 years since 1986 in our school community. The last sinking fund millage was approved in 2020 with a vote of 10,202 Yes Votes to 5,206 No votes. With this approval, the school district currently receives roughly $588,000 a year.
The sinking fund provides for building renovations, roof repair, necessary paving projects, windows, boilers, etc., as well as technology and safety upgrades as funds permit. Since 2016, this fund has been used to repair and install lockers, repave the front and side lots at Elms Elementary, the Seymour parking lot and bus loop, the High School bus loop, the repair and resurfacing of gym floors, bathroom repairs, boiler repair at Springview, boiler replacement at Central Elementary, numerous ongoing roof repairs, including parts of Flushing High School, Flushing Middle School, and a large roof replacement planned for this spring/summer at the Early Childhood Center. This fund has been critical in allowing us to maintain our heating systems, our parking lots and our roofs. With this small sinking fund, we constantly have to prioritize repair needs, knowing that $588,000 a year does not come close to approaching the level of need in our district. We are extremely grateful for the public’s ongoing support of this critical sinking fund, however our initial approved levy of .75 or ¾ of a mill is relatively small and is quickly spent on other needs outside of this bond scope.
As consistently stated, in attempting to be as financially responsible as possible, and very aware of our community’s financial position, we have not historically asked for an increase to our sinking fund millage rate. This year, due to rising property values, the levy has been rolled back to .73 of a mill.
The chart below shows what our neighbors throughout the county currently have as their voter approved “Sinking Fund” levy.
While it sounds redundant, the voter approved Sinking Fund Millage rate for Flushing is one of the lowest in the county.
Sinking funds cannot be used for operating expenses, salaries, employee benefits, or routine building maintenance. In accordance with State law, projects paid for through a sinking fund must be audited annually and reviewed by the Michigan Department of Treasury.
What is the overall financial Status of the district? Are we audited regularly, and what are the results of those audits? Additionally, I have heard that Flushing Community Schools ended the 2022-2023 school year with a general fund balance of 16.4% or $8.76 million dollars. What does this mean and is it reasonable and necessary for Flushing Community Schools to have this type of balance?
Flushing is proud to share that we’ve continued to have incredibly clean audits annually, as conducted by Yeo and Yeo, as mandated by law. Yeo and Yeo gives a thorough annual audit report publicly at a Flushing Community Schools Board of Education meeting, and that report can be seen on our transparency page or by clicking here. https://www.flushingschools.org/cms/lib/MI01808725/Centricity/Domain/31/Audit%20Report%2020231011.pdf
Our school district is applauded for the work of our business office, and for the use of best practices in every aspect of our budget. We receive their highest approval, including an “unmodified” rating, meaning every aspect of the budget is as it should be, without major adjustment, disagreement, incongruence or necessary explanation. There are no noted structural deficits or matters of concern. Our Board of Education is proud to oversee a school district that is celebrated for its use of exemplary business practices and the incredible work of the business office.
At the end of the 2022-2023 School year, our audited fund balance was $16.4% ($8.76 million dollars) of our annual operating expense. The recommended amount of General Fund Balance that Public School districts should try to keep, as recommended by the Michigan School Business Officials Association (MSBO) is between 15-20%. https://www.msbo.org/sites/default/files/FundBalInfo.pdf
There are a variety of reasons for this recommendation, including, but not limited to:
-Declining enrollment presents a myriad of problems for a school district. The presence of a fund balance allows the district to better manage the decline.
- The absence of sufficient fund balance will likely result in borrowing to meet cash flow needs. If a district borrows money it will pay a related interest cost, which is charged to the general operating budget. Many do not understand that a new fiscal year for school districts starts on July 1st of each year, the district does not receive a penny until mid to late October of the school year. That is when we receive our first state aid payment. Anyone we pay to work in the summer, such as our latchkey personnel, our IT department, summer school, custodial and maintenance, warehouse and administrators, is paid out of our fund balance. Additionally, once our teaching staff is back in mid August, any salary that they receive for August, September, and most of October comes out of that fund balance.
- The presence of a reasonable fund balance along with a stable trend in the level of fund balance is viewed favorably by the bond rating agencies. This benefits local taxpayers with lower interest costs on bonds that are issued.
- Fund balance provides flexibility in dealing with unanticipated emergencies such as mid-year reductions in state funding.
-The level of non-homestead tax base in the district: The 18 mill levy is only on non-homestead property. Since the main sources of funding for a district come from local property taxes and state aid the level of non-homestead property in the district determines the amount retrieved locally. If the district has a low non-homestead tax base it will result in greater funds received from the state which means the district will probably have to borrow funds to operate if their fund balance isn’t sufficient.
-The tax collection practice of the school district: A 100% summer collection allows a district to receive the local share of its funding up front with the July tax levy. If a 50/50 collection exists they will receive half in the summer and half in the winter collection. A 100% winter collection means the local taxes are collected during the winter only.
-The trend of the fund balance level: Districts spending more than they receive can create a structural deficit, which eventually has to be addressed. The reason for the deficit will determine the level of concern necessary. For example if fund balance is used to purchase a capital asset (buses, technology) that is preferable to spending the fund balance on recurring costs (employee costs).
-Future obligations that will require a greater level of spending such as opening a new building, districts can build up fund balance in order to meet the increased obligations of a larger operation.
As a general rule, MSBO recommends that districts have a fund balance of 15 to 20 percent of their budget. In simple terms this level of fund balance is necessary to avoid borrowing during the two month period between the August and October State Aid payments. Additionally, it is important to have a sufficient fund balance to allow a school district to absorb cuts in state funding that may occur. Just like in our own families, and certainly in running a school district or any other business, having a financial cushion allows a district to avoid drastic changes in educational programs and/or employee layoffs during the school year, which would be catastrophic.
Finally, as you are now accustomed to hearing, Flushing Community Schools operates with one of the 2 or 3 lowest Fund balance percentages in the county. This is because we have spent the greatest percentage of our financial resources as possible in support of our students and staff members. We pour the financial resources we get back into the classroom and into our buildings. We purchase new curriculum and manipulatives. We do our best to pay our staff as competitively as possible, hire the necessary support staff, as we have, including Reading interventionists, instructional, behavioral, MTSS and Special Educational support Paraprofessionals, Instructional Interventionists, School Home Coordinators, Counselors, Social Workers, additional Nurses and a School Psychologist. Coming out of Covid, there has been a growing percentage of academic, behavioral, and social emotional needs in our students, and we have spent any additional resources we have received in order to meet those needs, rather than build fund balance. That is why we have one of the lowest fund balances in Genesee County. https://www.mischooldata.org/fund-balance
If you have further questions regarding the district's financial position, please do not hesitate to reach out to our business office or to Superintendent Matt Shanafelt.
What is the estimated cost breakdown by school improvement project area? Is there an estimated timeline for the work to be completed on this bond project?
While there are a lot of moving parts to the 6 school improvement project areas that will benefit our students and this community in this bond, we have been able to work closely with our architect and construction manager to arrive at these estimated costs by project area:
-Safety and Security - $2-$3.5 Million dollars, with work to be completed over the next 12-18 months.
-Instructional Technology - $2-$3 Million dollars. Our intent is to pilot a large variety and extensive number of interactive/ immersive technologies during the 2024-2025 school year, with full implementation by the 2025-2026 School year.
-Elementary playground Enhancements - $2.5-$3.5 Million dollars. With this project focused on replacing the asphalt on all of our elementary playgrounds, we expect that much of the work will happen in the spring of 2025 through the summer of 2025. Again, we are expecting that this asphalt work is concluded by the start of the 2025-2026 school year.
-Performing Arts/ Auditorium Updates - $1.25 -$2 Million dollars, with work to be started during the 2024-2025 school year and concluded by the start of the 2025-2026 school year.
-HVAC Upgrades - $2.5-$3.5 Million dollars. We are hopeful that this work will be completed during the spring, summer and fall of 2025.
-Athletic Complex Upgrades - $8M-$11.75M. This is the most complex and extensive part of the project and has the most moving parts and the greatest flexibility. While some of the work may be able to be bid and started during the 2024-2025 school, the vast majority of this project is expected to take up to 27 months to complete. It will take the longest to design, bid, and get completed. While some upgrades will be able to be completed during the summer of 2025, we are hoping to be able to open the new multi-use athletic field for the start of the 2026-2027 school year.
Do you have a handout that I can share with my family and neighbors that summarizes the 2024 Bond information?
What is the current bond language as it will appear on the ballot?
OFFICIAL BALLOT
FLUSHING COMMUNITY SCHOOLS
COUNTY OF GENESEE
STATE OF MICHIGAN
SCHOOL IMPROVEMENT BOND PROPOSITION
Shall the Flushing Community Schools, County of Genesee, State of Michigan, borrow the sum of not to exceed Twenty-Three Million Five Hundred Fifty Thousand ($23,550,000) Dollars and issue its general obligation unlimited tax bonds, in one or more series, to pay the cost of the following projects to create a modern learning environment for students and for health, safety, security, energy conservation and other purposes:
- Remodeling, equipping, re-equipping, furnishing, re-furnishing school buildings, athletic fields, playgrounds and other facilities;
- Acquiring and installing technology equipment and technology infrastructure in school buildings and other facilities;
- Erecting facilities and structures at the High School athletic fields; and
- Preparing, developing and improving sites at school buildings, athletic fields, playgrounds and other facilities?
YES
NO
The estimated millage that will be levied to pay the proposed bonds in the first year is 0.45 mills ($0.45 per $1,000 of taxable value) for an estimated total of 3.18 mills for the 2024 debt levy which is an estimated -0- mill increase over the current debt levy. The estimated simple average annual millage that will be required to retire each series of the bonds is 1.45 mills annually ($1.45 per $1,000 of taxable value). The maximum number of years the bonds may be outstanding, exclusive of refunding, is not more than twenty (20) years.
If approved by the voters, the repayment of the bonds will be guaranteed by the State under the School Bond Qualification and Loan Program (the “Program”). The School District currently has $20,685,000 of qualified bonds outstanding and $0 of qualified loans outstanding under the Program. The School District does not expect to borrow from the Program to pay debt service on these bonds. The estimated computed millage rate required to be levied to pay the proposed bonds may change in the future based on changes in certain circumstances.
(Pursuant to State law, expenditure of bond proceeds must be audited, and the proceeds cannot be used for teacher, administrator or employee salaries, repair or maintenance costs or other operating expenses.)