By LINDA LOBECK
IRON MOUNTAIN The Iron Mountain School District Board of Education held a special meeting Thursday to pass a resolution to submit an application for qualification of bonds to the Michigan Department of Treasury.
This is the first step in the process to get a bond issue on the ballot before voters on Feb. 26.
Action Thursday was to apply for preliminary qualification of bonds by the Treasury Department for the purpose of financing the bond propositions in the application.
The school district is looking to borrow up to $9.5 million for 18 years. The money would be borrowed for the purpose of paying for the cost of:
- Remodeling, equipping, re-equipping, furnishing and re-furnishing school buildings and other facilities.
- Preparing, developing and improving sites at school buildings and other facilities.
- Equipping and re-equipping school buildings and other facilities for technology systems and equipment
According to the bond language, "the estimated millage that will be levied to pay the proposed bonds in the first year is 2.27 mills. The maximum number of years the proposed bonds may be outstanding exclusive of refunding is not more than 18 years; and the estimated simple average annual millage that will be required to retire the proposed bonds over 18 years is 3.8 mills."
If approved by the voters, the bonds will be guaranteed by the state of Michigan under Section 16 of Article IX of the State Constitution of 1963, as amended.
According to state law, the expenditure of bond proceeds must be audited and the proceeds cannot be used for teacher, administrator or employee salaries, repair or maintenance costs or other operating expenses.
Board members discussed the differences from the previous application made by in May for the bond vote during the Aug. 6 primary election.
In that request, the district had been looking for approval to borrow up to $11 million for 20 years. That proposal was defeated by only 46 votes.
The new proposal does not call for putting an addition on any building or razing the Central School. In addition, the middle school students will not be put in the high school.
Board member Mark Pontti asked what site improvements are included within the scope of the new proposal
Louis Meyette of OHM, the architectural firm working with the school district, noted that site improvements refers to the ramp and sidewalk work planned for the high school and lights and fencing at East Elementary School.
The board unanimously approved the application to the Treasury Department.
A closed session was also held at Thursday's meeting for a board update on negotiations.
Linda Lobeck's e-mail address is email@example.com.