Board sets 2025 tax rates after PFM advisers outline debt-millage options

The Midland Public Schools Board of Education received a presentation from municipal finance advisers and approved the district's formal 2025 tax resolution at its Sept. 8 meeting, adopting the operating and debt millage rates used to complete tax forms for local taxing agencies. Brad Killian, director with PFM Financial Advisors, and Carrie Blanchard, managing director with PFM, briefed the board on the school bond financing process, state prequalification rules and how debt millage is calculated. "One of the highlightsis that the State of Michigan School Bond Loan Fund program requires that the bonds need to be repaid within 120% of the useful life of the assets being constructed with those bond proceeds," Killian said. Carrie Blanchard walked the board through the district's prior ballot assumptions and explained that the district had structured a proposal to minimize taxpayer impact. She said the district's previous application projected a 6.2-mill debt rate if a prior bond had passed, split roughly 2.3 mills for existing debt and 3.9 mills for the proposed bonds. Blanchard told the board PFM recommended planning for a lower, conservative ongoing debt-millage levy and suggested a 2.5-mill level as a reasonable minimum to maintain a small debt-fund retainage to handle slow tax collections or tax-tribunal adjustments. "Two and a half mils will get you at least a small balance, so that if taxpayers pay slow or a tax tribunal decision comes ... you'll be able to weather that without going into the general fund to have to do an interim borrowing," Blanchard said. The administration presented the formal rates the board used to set the district budget: an 18-mill non-homestead rate, a hold-harmless rate of 0.4016 mills on principal residences and similar qualifying property, 6.4016 mills on commercial personal property (after statutory exemptions), and the 2.5 mills for bond debt that was originally passed in 2015. Anna (district finance staff) explained that the rates established tonight match those used in the June budget and are required to be transmitted to local taxing units via form L-4029. The board approved the tax resolution by roll-call vote; all members voted yes. Board members asked clarifying questions about why millage rates step down over time and the mechanics of municipal bond sales; PFM described the underwriting and market process and explained that bonds commonly include a call feature (typically 10 years) that allows refinancing, not arbitrary early principal payoffs. The board's action formally sets the 2025 levy rates and authorizes the district to forward tax-rate forms to local treasurers and the state.