DeWitt Public Schools - $157 MILLION in New Bonds

[Shadowninja]

Dearest reader,

⚠️ Fair warning: this one is a little longer than Lady B's usual posts.⚠️

DeWitt Public Schools is asking voters to authorize $157 MILLION in new bonds this November.

There is a lot buried in the financing documents, so Lady B isn't going to cram this into one post. This is Part 1. More will follow.

Today, let's start with a phrase voters are going to hear quite a bit:

"0.00 mill increase."

What does that actually mean?

📌 FIRST: WHAT DOES DEWITT ALREADY OWE?

Before adding another bond, DeWitt has approximately:

$75.52 MILLION
in existing bond principal still outstanding.

When the remaining interest is included, DeWitt's current bonds require approximately:

$100.74 MILLION
in future principal and interest payments.

That's the starting line.

📌 WHAT HAPPENS IF THE $157 MILLION BOND DOES NOT PASS?

This is where things get interesting.

DeWitt currently collects 10 mills annually for school debt. Generally 5 mills on the summer tax bill and 5 mills on the winter bill.

But DeWitt's own financing documents show that the millage needed to pay the EXISTING debt is projected to begin falling:

2027 — 10.00 mills
2028 — 10.00 mills
2029 — 8.63 mills
2030 — 7.85 mills
2031 — 7.44 mills
2032 — 6.81 mills
2033 — 6.53 mills
2034 — 6.05 mills
2035 — 5.19 mills

And it continues declining after that.

In other words, if no additional bonds are added, the amount needed to pay DeWitt's existing bond debt is projected to drop.

📌 SO WHAT DOES "0.00 MILL INCREASE" MEAN?

It does NOT mean the proposed $157 million bond has no cost.

Think of it this way:

DeWitt's old debt payments are beginning to create room as that debt is paid down. Like a when you pay down credit card debt and it opens up more to buy.

Instead of allowing the amount needed for debt taxes to fall, the proposed financing adds new debt into that space.

That's how DeWitt can propose $157 million in additional borrowing while describing the initial increase over the existing debt-tax rate as 0.00 mills.

📌 WHAT DOES THAT LOOK LIKE FOR A HOMEOWNER?

Lady B used an illustrative residential taxable value of $67,765.

Assuming taxable value increases approximately 3.596% annually, here's an example:

If the debt levy remains at 10 mills:

2028 — about $727/year
2029 — about $753/year
2030 — about $781/year
2035 — about $931/year

If the new bond is NOT added and the millage needed for existing debt declines according to DeWitt's own schedule:

2028 — about $727/year
2029 — about $650/year
2030 — about $613/year
2035 — about $483/year

Same starting taxable value.
Same assumed taxable-value growth.

The difference is the millage.

Over 2026–2035, that illustrative property would pay approximately:

10 mills maintained — $7,985

Existing-debt schedule — $6,136

Difference — approximately $1,849.

These are illustrations, not individual tax predictions. Actual taxable values will vary.

📌 AND WHAT ABOUT THE NEW $157 MILLION?

DeWitt's current financing plan divides it into three planned bond issues:

2027 — $17.61 million
2028 — $100.01 million
2030 — $39.38 million

$157 MILLION total.

Under the current financing assumptions, those bonds are projected to require approximately $303.9 MILLION in principal and interest payments over time.

And there is another piece voters need to understand.

DeWitt's financing plan anticipates borrowing additional money from the State of Michigan to help make bond payments when the planned tax collections aren't sufficient to cover the scheduled payments.

That deserves its own post.

Because Lady B found the projected State borrowing.

And the projected interest.

Those receipts are coming next. 🪶

This isn't about telling anyone how to vote.

It's about making sure "0.00 mill increase" doesn't become the end of the conversation when the financing documents tell a much bigger story.

With receipts and respect.
DeWitt Public Schools

#LadyBudgetdown #DeWittPublicSchools #DeWitt #SchoolBond #MichiganSchools #SchoolFinance #FollowTheMoney #WithReceiptsAndRespect