“The BRICS Bond is a new bond that will not raise the current millage (tax) rate”. This is accurate information as verified by Tom Wall the Executive Director of Business Services and the Chief Financial Officer (CFO) for Dearborn Public Schools. The terminology is aligned with language that is used by the Michigan Department of Treasury.
This statement, and other similar statements, have been said throughout the informational campaign to describe the BRICS Bond and its impact on the millage rate in Dearborn. Below are several links to public meetings were it was shared that the BRICS Bond was a new bond that will not increase the millage (tax) rate. I have been very clear about this during every community presentation and discussion that I have had with groups in the community. In addition, we have provided a more technical explanation regarding the millage/tax rate below the links.
In addition, print pieces that were shared with the community also reflected this message.
Here is a link to the print pieces:
https://drive.google.com/drive/folders/1cwYy1njd7xBH8VtB0UqzqbWDbNM7ID7j?usp=sharing
Public Meetings stating this is a new bond not a continuation:
July 22, 2019, Board of Education Meeting. Part 1
July 22, 2019, Board of Education Meeting. Part 1
August 19, 2019, Board of Education Meeting. Part 2
September 9, 2019, Board of Education Meeting. Part 1
BRICS Bond Virtual Forum | September 26th, 2019
Statement from Tom Wall the Executive Director of Business Services and the Chief Financial Officer (CFO) for Dearborn Public Schools
Tax Rate versus Millage Rate
There has been a lot of discussion lately regarding these terms and how they could be potentially used in discussion with the future bond rates regarding the November 5, 2019 ballot question. The L-4029 is the form we use to report our tax rates to the Michigan Department of Education. The individual form is then broken down by each line item and the purpose of each line represents the individual millage rate levied for each line. For example, the two lines for debt represents the 4.82 mills in our discussion. The statement of literature for Tax rate or Millage rate for the debt is interchangeable due to how we report it to the State Department of Treasury. We would be accurate that we are not proposing changing the tax rate or millage rate for the ballot question.
The tax calculation usually goes up or down based upon the taxable value of homes and therefore the amount of tax they pay will go up or down even if the tax rate/millage is the same.
Most people understand the term tax rate versus millage rate. The millage rate is the same as the tax rate but is a financial term most people are unfamiliar with and used by itself can be confusing.