Parchment School District, Kalamazoo County, Michigan, borrow the sum of not to exceed Thirty-
Six Million Four Hundred Thousand Dollars ($36,400,000) and issue its general obligation unlimited
tax bonds therefor, in one or more series, for the purpose of:
remodeling, furnishing and refurnishing, and equipping and re-equipping
school buildings, including for school security improvements; acquiring,
installing, equipping and re-equipping school buildings for instructional
technology; and developing and improving sites?
The following is for informational purposes only:
The estimated millage that will be levied for the proposed bonds in 2025, under current law, is 2.95
mills ($2.95 on each $1,000 of taxable valuation). The maximum number of years the bonds of any
series may be outstanding, exclusive of any refunding, is thirty (30) years. The estimated simple
average annual millage anticipated to be required to retire this bond debt is 4.51 mills ($4.51 on each
$1,000 of taxable valuation).
The school district expects to borrow from the State School Bond Qualification and Loan Program to
pay debt service on these bonds. The estimated total principal amount of that borrowing is $119,372
and the estimated total interest to be paid thereon is $2,831,915. The estimated duration of the millage
levy associated with that borrowing is 16 years and the estimated computed millage rate for such levy
is 9.96 mills. The estimated computed millage rate may change based on changes in certain
circumstances.
The total amount of qualified bonds currently outstanding is $17,585,000. The total amount of qualified
loans currently outstanding is approximately $9,121,362.
(Pursuant to State law, expenditure of bond proceeds must be audited and the proceeds cannot be
used for repair or maintenance costs, teacher, administrator or employee salaries, or other operating
expenses.)
What It Means for Taxpayers:
1. You’re Taking on New Debt — for 30 Years
The district is asking voters to approve $36.4 million in new debt, which will be repaid through property taxes for up to 30 years.
Translation: You (and possibly your kids) will be paying for this through increased property taxes well into the 2050s.
2. Estimated Tax Increase Starts at 2.95 Mills
In 2025, they expect to levy 2.95 mills — that’s $2.95 for every $1,000 of taxable property value.
- If your home’s taxable value is $100,000, you’d pay $295 more per year, starting in 2025.
- But that’s just the starting point.
3. The Average Millage to Repay the Bond is 4.51 Mills
Over time, the district expects to collect an average of 4.51 mills annually to pay this off.
So it’s likely your taxes will go higher than 2.95 mills in future years to cover principal and interest.
4. They Plan to Borrow from the State Too
The district also plans to borrow $119,372 from the State to help cover payments. But here’s the kicker:
- They’ll owe $2.83 million in interest on that small loan.
- That means more millage — an extra 9.96 mills may be added for up to 16 years.
That’s potentially $996/year on a $100,000 taxable home just to cover the state loan part — on top of the bond millage.
5. You’re Already Paying Off Old Debt
- The district already owes $17.6 million in bonds.
- Plus another $9.1 million in state school loans.
So this isn’t the start of debt — it’s a continuation of a cycle.
Bottom Line for Taxpayers
- Your property taxes are going up.
- You’re signing on for decades of payments, possibly without ever seeing a completed project if history repeats.
- You’re being asked to trust that the same officials who’ve made past promises will deliver — this time.