Bond - A district can borrow millions of dollars without asking for approval

[Shadowninja]

Dearest reader, did you know your school board may be able to borrow millions of dollars without asking you to approve another bond? 🪶

It's called an Energy Conservation Improvement Bond.

Anchor Bay voters approved a $169.3 million bond in 2022.

Then, in 2025, the district issued another $10.59 million in Energy Conservation and Improvement Bonds, carrying interest rates between 4% and 5% and stretching all the way to 2045.

There was no second bond election.

Why?

Because Michigan law specifically allows school boards to issue bonds for qualifying energy conservation and operational improvements without a vote of the school electors.

And these aren't necessarily just solar panels. Michigan law allows this financing mechanism to cover things such as HVAC upgrades, lighting, building-envelope improvements, energy-management systems, pumps, equipment and certain operational improvements.

In Anchor Bay's case, the district's own audit says the General Fund is primarily responsible for paying the $10.59 million liability.

Was the borrowing necessary? Did the projected savings justify the additional debt and interest?

Those are separate questions, and your Lady isn't answering them without the receipts.

But here's the question I can answer:

Did Anchor Bay voters have to approve this additional $10.59 million in borrowing?

No.

And I'm beginning to wonder how many Michigan taxpayers even know school boards have this authority.

With receipts and respect. 🪶
Anchor Bay School District

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