It is true.  The Fenton Area Public Schools May 6 bond proposal for $11 million will not increase the currently authorized millage rate.

 How is this possible?  There are two basic reasons the currently authorized millage rate will not increase.

 First, interest rates are near historic lows.  School districts with bond issues similar to Fenton’s are now borrowing at about 2.25 percent.  Over the last 10 years interest rates for similar bond proposals have been approximately 4.0 percent.  At the current interest rate, Fenton Area Public School District residents will save about one million dollars in interest costs if the May 6 bond proposal is approved by voters.

 Second, property values in the school district have improved during the past few years.  And they are projected to improve again in 2014!

 Revenue from the sale of bonds is directly related to the value of property in the school district.  Quite simply, higher property values generate more revenue for each mill levied.

 In 2010 property values in the school district had a negative 10.12 percent growth rate.  (This is another way of saying property values were down 10.12 %!)

 In 2011, there was a negative 6.12 percent growth rate.  In 2012 the growth rate was negative 1.14 percent, and last year the negative growth rate was 0.75 percent.

 Current projections are that property values in the school district will continue to improve.

 So, it is the combination of low interest rates and increasing property values that will enable school district voters to approve an $11 million bond proposal with no increase in the current millage rate.

 Complete information about the May 6 bond proposal in on the school district’s website (www.fenton.k12.mi.us).  Simply click on Bond Proposal Information.

 Residents with questions are invited to click on Talk to us or to call Superintendent Timothy Jalkanen at 810/591-4700.