FREELAND COMMUNITY SCHOOL DISTRICT: Non-Qualified Bond, so no Form 3881

[Shadowninja]

Dearest reader,

Well, this one is a little different.

Lady B has spent quite a bit of time lately digging through Form 3881s for school bond proposals.

But Freeland Community School District has a $21.2 million bond on the November ballot, and there is no 3881.

Why?

Because Freeland's own financial documents identify the proposed bonds as "Non-Qualified."

And that sent Lady B down a slightly different rabbit hole.

In response to a FOIA request, Freeland produced its project-cost summary, millage projections and proposed repayment schedules. The numbers estimate:

$21.2 million borrowed

Approximately $9.72 million in interest

Approximately $30.92 million in principal + interest

Payments extending into 2048

Now, before anyone gets excited: the absence of a 3881 does not mean Freeland forgot to file one. These bonds are being proposed as non-qualified bonds.

But here is where Lady B's spectacles come down a little.

After looking at what goes into the state qualification process, I have a different question:

What does that process provide? In documentation, review and scrutiny, that Freeland voters will not see with this proposal?

Because whether the paperwork is called a 3881 or something else, taxpayers are still being asked to authorize $21.2 million in debt.

And according to Freeland's own estimates, that becomes roughly $30.9 million with interest.

No accusation.

Just a different kind of bond, a different process...

and another breadcrumb worth following.

With receipts and respect.

#LadyBudgetdown #FreelandSchools #SchoolBonds #MichiganSchools #WithReceiptsAndRespect #freelandcommunityschools