Question 1

Why a bond proposal?

Accepted Answer

Many school districts in the State of Michigan typically seek approval for bond proposals every 5-10 years. This allows for significant building  improvements to occur and keep district facilities current. The last successful bond proposals passed in the Galesburg-Augusta Community Schools District was in November of 2021.

Due to the size and scale of school buildings, maintenance, updates, and replacement of facilities is costly and often not possible through the traditional  funding received by school districts. Our district has a number of important facility needs that require large sums of money to complete. The Board of  Education has determined that a bond proposal is their preferred approach to making the significant updates and improvements needed at GACS.

Question 2

Can bond funds be used for employee salaries or operating expenses?

Accepted Answer

No, by law, bond proposal funds cannot be used for employee salaries and benefits or student programming. They also cannot be used for repair or  maintenance costs or other operating expenses. Bond proposal funds must be used only for purposes specified in the ballot language, and as required by  state law, they must be independently audited.

Question 3

How does our current bond and sinking fund millage rate compare to other area districts?

Question 4

How would the bond proposal affect my taxes?

Accepted Answer

If approved, the ballot proposal would allow the district to sell bonds in the amount of $11.2 million requiring an estimated 0.00-mill net increase over  the current debt millage rate of 6.40 mills. Your property tax levy will remain at the 6.40 mills for the 2026 levy.

Question 5

Would all the bonds be sold at one time?

Accepted Answer

The bonds may be sold in series. A series bond means that voters are asked to approve the overall bond amount once at the May 5th, 2026 election. Approval at this election authorizes the district to sell bonds up to the amount of $11.2 million over the next few years. Timing of the sale of  bonds is monitored and suggested by the district’s financial manager, PFM Financial Advisors. Following a successful election, the first series would be  sold in 2026 and the second series is anticipated to be sold in 2027. This approach is an opportunity to save in interest costs, and it also staggers cash  flow for the project, so it is received when needed for construction to align with the potential staggered start and completion dates of the proposed  projects.

MAY 2026 BOND FREQUENTLY ASKED QUESTIONS

MAY 2026 BOND
FREQUENTLY ASKED QUESTIONS