District Blog

Bond Issue Millage

Posted on: November 24, 2020

 

Franklin Board of Education rolls back bond-issue millage

Franklin City Schools promised voters that the millage for the recently passed bond issue would never exceed 5 mills. At its Nov. 23 board meeting, the Franklin Board of Education took the steps necessary to keep that promise by passing a resolution to collect tax at a rate of 4.94 mills commencing in 2020 with taxes first due in 2021.

"The board needed to vote on this rollback because the bond issue ballot language was 6.52 mills," said interim treasurer Robert Giuffre. He added, "The state of Ohio dictates the ballot language for bond issues, and it's based on the assumption that the community's property values are unchanged for the entire 37 years of the bond issue."

Giuffre explained there are several ways that districts can structure debt repayment. Under two of those, the millage changes over the years. However, Franklin has chosen the method that keeps the millage the same for all 37 years, which in this case keeps it under 5 mills.

"Franklin's property values have increased 33% in the past 18 years, and we anticipate that they will continue to do so," said Giuffre. "We also won't issue the debt all at once; for example, we may not issue the debt to renovate the high school into a middle school until the new high school is near completion."

Franklin's bond issue passed on Nov. 3 with over 60% of voters saying yes to the construction of four new buildings and the complete renovation of a fifth. The district is beginning preliminary steps of the design phase now, which will involve site surveys and preparation, and committees meeting to provide input on building design and aesthetics. The state of Ohio will pay 57% of the cost of the new classroom buildings through the Expedited Local Partnership Program. The first building, a new Franklin High School, is tentatively scheduled to open in the fall of 2023.