Romulus board moves bond vote to Aug. 5, proposes $160 million program with lower millage

The Romulus Community Schools Board of Education on Jan. 13 approved an amended resolution to move a planned bond election from May to Aug. 5, 2025, after a municipal advisor outlined a proposed $160 million capital program and a millage structure that the district says would lower — not raise — the current debt levy.

The change was approved by roll call vote after a presentation from PFM municipal advisor Brody Killian, who told the board the district could extend a reduced 7-mill levy and generate about $160,000,000 in new bond proceeds sold in three series (2025, 2027 and 2029) to finance building and technology projects identified in the district facility review.

The recommendation matters because Romulus officials said long-term property-tax revenues and recent debt payoffs create a narrow window in which the district can fund capital needs while holding levy rates lower than today’s aggregate debt millage. “We’re proposing . . . approximately $160,000,000” in new money, Killian said during his presentation.

Killian summarized the financial case: taxable value in the district has recovered since the Great Recession, recent refinancings and a completed payoff of the district’s school-bond loan revolving fund loan reduced near-term debt service, and those factors together permit an extension of the levy at a lower mill rate. Under the scenario presented, the board’s existing 8.25-mill debt levy would drop to 7 mills in July; Killian showed an example where that change would reduce taxes on a home with an estimated $100,000 taxable value (market value $200,000) from $825 to $700 annually — a savings of about $125.

Board members questioned details. Trustee Piles asked whether the 8.25 mills represented an aggregate of outstanding debt; Killian answered that 8.25 is the aggregate number needed to pay all existing debt and that, because taxable value has grown, the same rate produces more revenue today than in 2008. Killian also told the board that the district presently has about $31,000,000 in outstanding bonds (including energy bonds), and that the final maturity on current debt is shown in the district’s materials as a levy-year maturity corresponding to May 2029.

Board counsel and advisors also explained legal and timeline steps. If the board moves forward, staff will schedule a preliminary qualification (PQ) meeting with the Michigan Department of Treasury in March or April, the district would file final PQ materials by the May filing deadline, and the district would conduct a local information campaign ahead of an Aug. 5 election. Killian said the bond issue as presented is preliminary and subject to change as project lists and bond sizing are refined. Dr. Edmondson said she will lead the community outreach and emphasized the need to “tell the truth” to voters about what the proposal would do for the district.

On procedural matters the board approved the amended resolution — offered by Trustee Davis and supported by Trustee Rogers — to retarget the election to August. The Secretary of the Board certified the resolution and minutes under the Open Meetings Act (1976 PA 267).

What happens next: administration and advisors will refine project priorities and bond sizing, complete the PQ application with Treasury, and bring final ballot language to the board for approval before the district files for the election. The board also discussed continuing public education and a bond committee that includes board members and community representatives.

Votes at a glance

- Motion to accept the Jan. 13, 2025 meeting agenda: moved by President Laster, supported by Trustee Davis; roll call recorded approvals (Piles, Kamal, Davis, Laster, Wester/Lester present). Outcome: approved.

- Consent agenda (minutes, bills for payment, financial statements): moved by Trustee Davis, supported by Trustee Rogers; bills for payment listed at $3,042,912.78. Outcome: approved by roll call (Davis, Kamal, Piles, Laster, Rogers).

- Resolution amending authorization of the preliminary qualification process to target an Aug. 5, 2025 bond election (amends prior Oct. 28, 2024 PQ authorization): moved by Trustee Davis, supported by Trustee Rogers; roll call yes votes from Davis, Kamal, Piles, Laster and Rogers. Outcome: approved.

Board questions and clarifications recorded in the meeting transcript included: which debts comprise the existing 8.25 mills; the district’s outstanding call/non-callable bonds and energy bonds; that voter-backed, school bond loan fund-qualified debt does not count against the district’s statutory debt limit; and that the district’s bond rating is currently in the investment-grade category. The presenters and advisors said they will supply additional calculations (maximum statutory debt capacity, refined project lists and updated millage projections) at follow-up meetings.

The board did not adopt final ballot language or a final bond-size authorization tonight; the approved resolution only amends the earlier PQ authorization to move the targeted election date to Aug. 5, 2025, and rescinds prior conflicting motions. Administration and the municipal advisor will return with PQ paperwork, ballot language and project prioritization for future board action.