Hamtramck board approves 2024-25 final amendment, 2025-26 proposed budget and 18‑mill tax levy; large state infrastructure grant to fund facilities

The Hamtramck Board of Education on June 24 approved its final amendment for fiscal 2024–25, adopted a proposed budget for 2025–26 and set the district's tax rates, restoring the non‑homestead levy to 18 mills, board members said.

The actions were taken after a budget hearing led by Jim Larson and Cindy (last name not given), who presented revenue and expenditure changes, grant awards and the district's plan to use a recent state infrastructure grant to fund major facilities work while phasing out federal ESSER funds.

Larson said local revenue for 2024–25 rose in the amendment by about $268,000, driven by approximately $200,000 in increased investment earnings and roughly $70,000 from restoring the non‑homestead millage to 18 mills. He said a two‑year coaching grant originally worth $2,000,000 is being drawn down, leaving roughly $800,000 to carry into 2025–26 after this year's spending and audit adjustments. Larson said the district lost about $235,000 in state funding tied to final FTE calculations for 2024–25.

Most of the projected increase in state revenue for 2025–26 comes from a state infrastructure grant of $8,600,000 the district received after applying in February–March, Larson said. That grant reduces the district's need to use general fund dollars after ESSER funding expires: Larson said the infrastructure award means the district will need about $4.3 million of local matching funds to secure the $8.6 million award. He described that match as a roughly 1:2 contribution requirement.

Larson and Cindy also summarized broader budget shifts: federal project revenues fall from about $32,000,000 to $26,000,000 because ESSER funds are ending; general fund expenditures in the final amendment moved from about $87.6 million to $88.1 million; and indirect cost reimbursements declined by roughly $32,000 because federal rules limit indirect costs on capital purchases under the cited SR‑3 provisions.

Cindy reviewed Form L‑4029, the annual tax levy document used to notify the taxing authority of mills to levy. She said voters in November approved restoring the voter‑approved non‑homestead millage to the maximum 18 mills; that levy plus state aid comprise the foundation allowance used to compute per‑pupil funding. Cindy said the district is still under a rollback for the recreation millage and that the recreation levy is due to expire in December 2026.

Board members voted to set the 2025–26 tax rates at 18 mills on non‑homestead taxable value and 3.9289 mills for recreation on all taxable value. The board approved the final amendment and the proposed 2025–26 budget by roll call votes reported as four ayes and three absences.

Facilities and capital projects were prominent in the presentation. Larson identified approximately $8,000,095 that had been reserved for HVAC projects; after receiving the state infrastructure grant those reserves were reduced and $4.3 million was included in the proposed budget as the district's match for the grant. He said the grant will allow capital work that otherwise would have required general fund dollars after ESSER funds expire.

Larson and board members also discussed ongoing facilities work at the high school kitchen. Larson said the kitchen project remains with the district's lawyers and is not expected to be finished this summer; he said the legal process and contractor dispute mean the project may not conclude before the end of 2025. The board discussed using sinking fund dollars to help cover match obligations and other capital needs, but staff said the exact sinking fund balance for next year could not be determined at the meeting.

On food service procurement, Larson said the district had extended the existing food service contract because bids would not arrive before summer school. Bids are expected back July 9; the district hosted tours for prospective bidders and plans to evaluate proposals in July or early August.

Board members asked timeline questions about capital work planned for the pool (tile repairs and bleacher work) and about the timing for kitchen completion; staff said the pool and bleacher repairs are scheduled for the summer, while the kitchen remains tied up in legal review.

The board adopted the budget and millage motions by vote and then proceeded with other agenda items.

The meeting record shows a roll call vote of four ayes and three absences on the budget and tax motions; the district will proceed with the grant match and capital planning in coming weeks as staff complete procurement and legal steps.