Okemos board hears millage, sinking‑fund and long‑range bond planning as next bond options considered
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Summary
District finance leaders briefed trustees on operating millage, Headlee rollback, sinking‑fund uses and the 2022 bond draws; trustees were asked to form subcommittees and work with PFM on timing and levy scenarios ahead of February/March planning meetings.
Okemos Public Schools administrators gave trustees an overview of long‑range funding options and next steps as the district plans beyond its 2022 bond.
Executive Director Lentz explained operating millage mechanics and Headlee rollback: Michigan assumes districts levy up to 18 mills for operating calculations and the district’s base operating levy is currently about 17.8795 mills; an additional voter‑approved “safety net” millage covers Headlee rollback differences. Lentz said the operating levies and the sinking fund levies currently in place are good through Dec. 31, 2031 and will require voter action to renew.
On capital funds, administrators summarized the sinking fund and recent legal changes: sinking‑fund dollars can pay for roofs, parking, boilers, and, depending on ballot language, certain security and instructional technology; sinking funds have been limited by legislative changes and cannot be used for routine operations or salaries. Lentz noted the district’s sinking fund levy currently generates about $1.7 million annually under current Headlee‑adjusted rates.
The board also heard a bond‑debt update: the 2022 bond was authorized at $275 million and has been issued in staggered draws; administration projected the bond‑related 7‑mill levy to remain in place through the mid‑2030s as debt service falls. Trustees discussed timing for a future bond or millage question and agreed administrators should present scenarios developed with PFM (financial adviser) and with two board subcommittees (finance and facilities) to vet options.
Why it matters: trustees will have to weigh timing, ballot competition, and priorities (new elementary vs. more athletic/technology projects) as the district sets a timeline for any future request to voters. Administrators said they will return with scenario planning in February and March and recommended broader community engagement to form a proposed project list and timeline.