Mich. Admin. Code R 388.19 — Annual computed millage waiver requests

Rule 19. (1) The department shall consider waiver requests to levy a recalculated
computed millage that is less than the computed millage stated on the applicant’s most
recent order qualifying bonds, but that is not lower than the computed millage rate noted
on the applicant’s current loan agreement in effect at the time of the request. For school
districts that have issued refunding bonds subsequent to entering into a loan agreement,
there may be a higher computed millage rate reflected on the most recent order qualifying
bonds than on the loan agreement.
(2) Subject to subrule (3) of this rule, such waivers must be requested annually prior
to June 1 each year and may be granted if all of the following statutory conditions are
met:
(a) The school board of the school district has applied to the state treasurer for
permission to levy a recalculated computed millage as described in subrule (1) of this
rule.
(b) The application specifies the number of mills the school district requests
permission to levy which shall be equal to the recalculated computed millage.
(c) The waiver will be financially beneficial to this state, the school district, or both.
It is presumed that the recalculated computed millage, despite being lower than the
computed millage reflected on the applicant’s most recent order qualifying bonds, but not
lower than the computed millage rate reflected on the applicant’s current loan agreement
in effect at the time of the request, meets this condition.
(d) The waiver will not reduce the millage levied by the school district to pay
principal and interest on qualified bonds and/or qualified loans under the act to less than
7 mills.
(e) The board of the school district, by resolution, will agree to comply with all
conditions that the state treasurer has specified in the waiver. Any conditions are
anticipated to be only those needed to address any unforeseeable circumstances unique to
and presented by individual school districts. The department’s approach to those
circumstances will be uniform to the extent possible.
(3) Once a waiver has been approved, for each subsequent consecutive year where
the recalculated computed millage is lower than the computed millage stated on the most
recent order qualifying bonds for the district, the district may continue to levy the lesser
recalculated computed millage as long as it is sufficient to repay all outstanding loans by
the final mandatory repayment date. Board acknowledgement of the waiver continuance
will be obtained during the annual loan application process required by the act and will
satisfy the annual waiver request requirement.
(4) If confirmed taxable value amounts are not available prior to board certification,
estimated taxable values may be used in the application. Revised financial schedules with
confirmed taxable values must be submitted prior to final department approval. Complete
and timely applications shall be processed not later than June 10.
(5) Waiver request forms are available on the department’s website and must be
submitted along with current pro forma debt service projections not later than June 1 to
the appropriate contact on the department’s website.