Sinking Fund Millage Proposal Board of Education January 18, 2017

Recommendation Increase the AAPS Sinking Fund Millage to meet facility/physical property needs: Renewal, repair and replacement of infrastructure 32 school buildings / 3,369,500 square feet Average age of 60 years Expansion of facilities to meet housing growth demands Complete 2015 Bond work Elementary playgrounds, auditorium repairs, security enhancements, outdoor learning spaces January 18, 2017

Renewal, Repair & Replacement of Infrastructure HVAC Roofing Essential Repairs Updating aging systems Building restoration January 18, 2017

Allen Flood Event – August 2016 January 18, 2017

Expansion for Housing Growth North Oaks of Ann Arbor 472 Home Development Woodbury Club 277 apartments North Sky 138 single family homes 56 Condos 33 Condo units 70 Apartments South Pond Village 73 single family homes 2857 Packard 58-83 single family homes January 18, 2017

Completion of 2015 Bond Advisory Committee Recommendations Elementary playgrounds Auditorium/Performance Facilities Improving safety and updating equipment Athletic/Outdoor Learning Areas Security Enhancements January 18, 2017

Sinking Fund Millage Levied in Ann Arbor since 2002 (Building & Site millage levied prior) Provides funding to support the repair and construction of school buildings Protects General Fund dollars Last renewed Fall 2013 for 5 years at 1 mill out of a possible 5 mills allowed by law Currently allowed to levy a maximum of 3 mills for up to 10 years One of few local ‘levers’ that can be used to protect district against negative financial impact January 18, 2017

Propose Sinking Fund Millage Increase & Extension Replace current Sinking Fund Millage May 2017 election Increase to 2, 2.5 or 3 mills Extend to 10 years, beginning 2017 Mills Cost to Taxpayer per $100,000 Home Value / $50,000 Taxable Value Amount Raised Annually Current Levy of 1 mill $ 50 $ 8 M 2 mills $100 $16 M 2.5 mills $125 $20 M 3 mills $150 $24 M January 18, 2017