THE LEDGER IS HEADING TO FREELAND...
Freeland Community School District has placed a $21.2 million bond proposal on the November ballot, and it's being described as "tax neutral."
But taxpayers may want to look a little closer at what that means.
The district currently levies approximately 1.984 mills for a sinking fund. Under the proposed plan, that sinking-fund levy would be discontinued and replaced with approximately 1.984 mills for bond debt.
Same millage rate today?
Yes.
Same financial obligation?
Not necessarily.
A sinking fund is essentially pay-as-you-go funding: taxpayers provide the money and the district spends those funds on eligible projects.
A bond is different.
The district borrows $21.2 million and taxpayers repay that debt, including interest over time.
There's another important piece.
The existing sinking-fund authorization does not continue forever. Its current authorization runs through 2028.
So the question isn't simply:
"Will my school millage go up immediately if this bond passes?"
The better question is:
"What will I pay if the bond passes compared with what I would pay if it fails?"
Those are two very different comparisons.
Before Lady Budgetdown calls this proposal "tax neutral," we're going to find the bond repayment schedule, the projected interest cost and exactly how long taxpayers would be paying the new debt. We will be using the districts formal 3881.
Because keeping today's millage rate the same by replacing one levy with another doesn't automatically mean the new obligation costs taxpayers nothing.
Same rate today ≠ no additional cost tomorrow.
The Freeland ledger is officially open. 📖🐇
Freeland Community School District
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