NEW ISSUE
Rating ¹†: Standard & Poor’s: AABook-Entry-Only
TAX STATUS: In the opinion of Thrun Law Firm, P.C., Bond Counsel, assuming continued compliance by the School District with certain
requirements of the Internal Revenue Code of 1986, as amended (the “Code”), interest on the Bonds is excluded from gross income for federal
income tax purposes, as described in the opinion, and the Bonds and interest thereon are exempt from all taxation in the State of Michigan,
except inheritance and estate taxes and taxes on gains realized from the sale, payment or other disposition thereof. The School District has
designated the Bonds as “QUALIFIED TAX-EXEMPT OBLIGATIONS” within the meaning of the Code, and has covenanted to comply
with those requirements of the Code necessary to continue the exclusion of interest on the Bonds from gross income for federal income tax
purposes.
$3,330,000
CASSOPOLIS PUBLIC SCHOOLS
County of Cass
State of Michigan
2015 School Building and Site Bonds
(General Obligation - Unlimited Tax)
PURPOSE AND SECURITY: The 2015 School Building and Site Bonds (General Obligation - Unlimited Tax) (the “Bonds”) were authorized at
an election on August 4, 2015, for the purpose of remodeling, furnishing and refurnishing, equipping and re-equipping, and replacing roofs on
school facilities, in part, for building security and energy conservation improvements; acquiring and installing instructional technology in school
buildings; and preparing, developing, and improving outdoor athletic facilities. The Board of Education authorized the issuance of the Bonds by
resolutions adopted on August 24, 2015 and expected to be adopted on October 26, 2015 (together, the “Resolutions”) . The Bonds will pledge
the full faith, credit and resources of the Cassopolis Public Schools, County of Cass, State of Michigan (the “School District”)for payment of the
principal and interest thereon, and will be payable from ad valorem taxes, which may be levied without limitation as to rate or amount as provided
by Article IX, Section 6, of the Michigan Constitution of 1963. The rights or remedies of bondholders may be affected by bankruptcy, insolvency,
fraudulent conveyance or other laws affecting creditors’ rights generally, now existing or hereafter enacted, and by the application of general
principles of equity including those relating to equitable subordination.
BOOK-ENTRY-ONLY: The Bonds are issuable only as fully registered bonds without coupons, and when issued, will be registered in the name of
Cede & Co., as Bondholder and nominee for The Depository Trust Company (“DTC”), New York, New York. DTC will act as securities depository
for the Bonds. Purchases of beneficial interests in the Bonds will be made in book-entry only form, in the denominations of $5,000 or any integral
multiple thereof. Purchasers will not receive certificates representing their beneficial interest in Bonds purchased. So long as Cede & Co. is the
Bondholder, as nominee of DTC, references herein to the Bondholders or registered owners shall mean Cede & Co., as aforesaid, and shall not
mean the Beneficial Owners of the Bonds. See BOOK-ENTRY ONLY SYSTEM herein.
PAYMENT OF BONDS: Interest on the Bonds will be payable semiannually on May 1 and November 1 of each year commencing on May 1, 2016.
The The Bonds will be registered Bonds, of the denomination of $5,000 or multiples thereof not exceeding for each maturity the principal amount
of such maturity. The principal and interest shall be payable at the corporate trust office of The Huntington National Bank, Grand Rapids,
Michigan (the “Paying Agent”) or such other Paying Agent as the School District may hereafter designate by notice mailed to the registered owner
not less than sixty (60) days prior to any interest payment date. So long as DTC or its nominee, Cede & Co., is the Bondholder, such payments
will be made directly to such Bondholder. Disbursement of such payments to the Beneficial Owners is the responsibility of DTC Participants and
Indirect Participants, as more fully described herein. Interest shall be paid when due by check or draft mailed to the registered owner as shown
on the registration books as of the fifteenth day of the month preceding the payment date for each interest payment.
Principal Due: May 1 of each year as shown below
Dated: November 12, 2015
MATURITY SCHEDULE
(Base CUSIP§: 148303)
Year
2016
2017
2018
2019
2020
Amount
$260,000
305,000
315,000
325,000
330,000
Interest
Rate
1.00%
1.00
2.00
2.00
2.00
Yield
0.60%
0.85
1.05
1.25
1.50
CUSIP§
EW6
EX4
EY2
EZ9
FA3
Year
2021
2022
2023
2024
2025
Amount
$340,000
350,000
360,000
370,000
375,000
Interest
Rate
2.00%
2.00
2.00
3.00
3.00
Yield
1.60%
1.80
2.00
2.15
2.25
CUSIP§
FB1
FC9
FD7
FE5
FF2
J.J.B. Hilliard, W.L. Lyons, Inc.
PRIOR REDEMPTION: Bonds of this issue are not subject to redemption at the option of the School District prior to maturity as described
herein. See “NO PRIOR REDEMPTION - No Optional Redemption” herein.
BOND COUNSEL: The Bonds will be offered when, as and if issued by the School District subject to the approving legal opinion of Thrun Law
Firm, P.C., Novi, Michigan.
This cover page contains information for a quick reference only. It is not a summary of this issue. Investors must read the entire Official Statement to
obtain information essential to the making of an informed investment decision.
Additional information relative to this Bond issue may be obtained from:
Public Financial Management, Inc.
3989 Research Park Drive
Ann Arbor, Michigan 48108
734-668-6688
Official Statement Dated: October 26, 2015
¹ For an explanation of ratings, see “CREDIT RATING” herein.
† As of the date of delivery
* Preliminary, subject to change.
§ Copyright 2015, American Bankers Association. CUSIP data herein is provided by Standard & Poor’s CUSIP Service Bureau, a division of the McGraw-Hill
Companies, Inc. The School District shall not be responsible for the selection of CUSIP numbers, nor any representation made as to their correctness
on the Bonds or as indicated above.
CASSOPOLIS PUBLIC SCHOOLS
725 Center Street
Cassopolis, Michigan 49031
Phone: 269-445-0503
Fax: 269-445-0505
BOARD OF EDUCATION
PRESIDENT
Scott R. Ward
Term Expires December 2016
VICE PRESIDENT
Lisa A. Cutting
Term Expires December 2018
SECRETARY
Susan L. Horstmann
Term Expires December 2018
TREASURER
George M. Calvert
Term Expires December 2018
TRUSTEES
Deborah K. Deubner
Term Expires December 2018
Jesse L. Binns
Term Expires December 2018
Amanda M. Smego
Term Expires December 2016
SUPERINTENDENT
Tracy D. Hertsel
BUSINESS MANAGER
Becky Smith
PROFESSIONAL SERVICES
PAYING AGENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Huntington National Bank
BOND COUNSEL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Thrun Law Firm, P.C.
FINANCIAL CONSULTANT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Public Financial Management, Inc.
ii
TABLE OF CONTENTS
Page
INFORMATION FOR BIDDERS . . . . . . . . . . . . . . . . .
PURPOSE AND SECURITY . . . . . . . . . . . . . . . . .
NO PRIOR REDEMPTION . . . . . . . . . . . . . . . . . .
NOTICE OF SALE . . . . . . . . . . . . . . . . . . . . . . . . .
BOOK-ENTRY ONLY SYSTEM . . . . . . . . . . . . .
TAX PROCEDURES . . . . . . . . . . . . . . . . . . . . . . .
LEVY AND COLLECTION OF TAXES FOR
PAYMENT OF THE BONDS AND
BONDHOLDERS' REMEDIES . . . . . . . . . . .
TRANSFER OUTSIDE BOOK-ENTRY-ONLY
SYSTEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SOURCES OF SCHOOL OPERATING
REVENUE . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MICHIGAN PROPERTY TAX REFORM . . . . . . .
LITIGATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TAX MATTERS . . . . . . . . . . . . . . . . . . . . . . . . . . .
State of Michigan . . . . . . . . . . . . . . . . . . . . . . .
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Original Issue Premium . . . . . . . . . . . . . . . . . .
Future Developments . . . . . . . . . . . . . . . . . . . .
APPROVED BY THE MICHIGAN
DEPARTMENT OF TREASURY . . . . . . . . . .
CONTINUING DISCLOSURE . . . . . . . . . . . . . . .
BOND COUNSEL’S RESPONSIBILITY . . . . . . .
FINANCIAL CONSULTANT’S OBLIGATION . .
CREDIT RATING . . . . . . . . . . . . . . . . . . . . . . . . .
ESTIMATED SOURCES AND USES OF FUNDS
GENERAL FINANCIAL INFORMATION . . . . . . . .
AREA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
POPULATION . . . . . . . . . . . . . . . . . . . . . . . . . . .
PROPERTY VALUATIONS . . . . . . . . . . . . . . . .
Historical Valuations . . . . . . . . . . . . . . . . . . .
Per Capita Valuation . . . . . . . . . . . . . . . . . . .
Industrial Facilities Tax (IFT) . . . . . . . . . . . .
TAX BASE COMPOSITION . . . . . . . . . . . . . . . .
MAJOR TAXPAYERS . . . . . . . . . . . . . . . . . . . . .
TAX RATES - (Per $1,000 of Valuation) . . . . . . .
Cassopolis Public Schools . . . . . . . . . . . . . . .
Other Major Taxing Units . . . . . . . . . . . . . . .
STATE AID PAYMENTS . . . . . . . . . . . . . . . . . .
TAX LEVIES AND COLLECTIONS . . . . . . . . .
LABOR FORCE . . . . . . . . . . . . . . . . . . . . . . . . . .
PENSION FUND . . . . . . . . . . . . . . . . . . . . . . . . .
OTHER POST-EMPLOYMENT BENEFITS . . .
1
1
1
1
1
3
DEBT STATEMENT . . . . . . . . . . . . . . . . . . . . . . 16
DIRECT DEBT . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
OVERLAPPING DEBT . . . . . . . . . . . . . . . . . . . . 16
DEBT RATIOS . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
DEBT HISTORY . . . . . . . . . . . . . . . . . . . . . . . . . 16
FUTURE FINANCING . . . . . . . . . . . . . . . . . . . . 16
OTHER BORROWING . . . . . . . . . . . . . . . . . . . . 17
LEGAL DEBT MARGIN . . . . . . . . . . . . . . . . . . . 17
SCHOOL BOND QUALIFICATION AND LOAN
PROGRAM . . . . . . . . . . . . . . . . . . . . . . . . . . 17
4
4
4
5
6
6
6
6
7
7
7
8
8
8
9
9
10
10
10
10
10
11
11
12
12
13
13
13
13
14
14
14
15
GENERAL ECONOMIC INFORMATION . . . . . . . .
LOCATION AND AREA . . . . . . . . . . . . . . . . . . .
POPULATION BY AGE . . . . . . . . . . . . . . . . . . .
INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EMPLOYMENT CHARACTERISTICS . . . . . . .
EMPLOYMENT BREAKDOWN . . . . . . . . . . . .
UNEMPLOYMENT . . . . . . . . . . . . . . . . . . . . . . .
BANKING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
18
18
18
19
19
20
20
GENERAL SCHOOL INFORMATION . . . . . . . . . . .
DESCRIPTION . . . . . . . . . . . . . . . . . . . . . . . . . . .
BOARD OF EDUCATION . . . . . . . . . . . . . . . . .
SCHOOL ENROLLMENT . . . . . . . . . . . . . . . . . .
Historical Enrollment . . . . . . . . . . . . . . . . . . .
Enrollment by Grade . . . . . . . . . . . . . . . . . . .
Projected Enrollment . . . . . . . . . . . . . . . . . . .
EXISTING SCHOOL FACILITIES . . . . . . . . . . .
OTHER SCHOOLS . . . . . . . . . . . . . . . . . . . . . . .
OTHER MATTERS . . . . . . . . . . . . . . . . . . . . . . .
21
21
21
21
21
21
21
22
22
22
APPENDIX A - BUDGET . . . . . . . . . . . . . . . . . . . . . A-1
APPENDIX B - AUDIT . . . . . . . . . . . . . . . . . . . . . . . B-1
APPENDIX C - FORM OF CONTINUING
DISCLOSURE AGREEMENT . . . . . . . . . . . . . . C-1
APPENDIX D - DRAFT LEGAL OPINION . . . . . . . D-1
APPENDIX E - DRAFT OFFICIAL
NOTICE OF SALE . . . . . . . . . . . . . . . . . . . . . . . E-1
iii
[THIS PAGE INTENTIONALLY LEFT BLANK]
INFORMATION FOR BIDDERS
$3,330,000
CASSOPOLIS PUBLIC SCHOOLS
County of Cass
State of Michigan
2015 School Building and Site Bonds
(General Obligation - Unlimited Tax)
DATED:
November 12, 2015
FIRST INTEREST:
May 1, 2016
REGISTRATION:
Principal and Interest
PAYING AGENT:
The Huntington National Bank, Grand Rapids, Michigan
TAX DESIGNATION:
QUALIFIED TAX - EXEMPT OBLIGATIONS
PRINCIPAL DUE:
May 1, annually as shown the front cover
PURPOSE AND SECURITY
The Bonds were authorized at an election on August 4, 2015, for the purpose of remodeling, furnishing and
refurnishing, equipping and re-equipping, and replacing roofs on school facilities, in part, for building security and energy
conservation improvements; acquiring and installing instructional technology in school buildings; and preparing, developing,
and improving outdoor athletic facilities. The Bonds will pledge the full faith, credit and resources of the School District for
payment of the principal and interest thereon, and will be payable from ad valorem taxes, which may be levied without
limitation as to rate or amount as provided by Article IX, Section 6, of the Michigan Constitution of 1963. The rights or
remedies of bondholders may be affected by bankruptcy, insolvency, fraudulent conveyance or other laws affecting creditors'
rights generally, now existing or hereafter enacted, and by the application of general principles of equity including those
relating to equitable subordination.
NO PRIOR REDEMPTION
Bonds of this issue are not subject to redemption at the option of the School District prior to maturity.
NOTICE OF SALE
See “APPENDIX E - DRAFT OFFICIAL NOTICE OF SALE,” for further information regarding this issue.
BOOK-ENTRY ONLY SYSTEM
The information in this section has been furnished by The Depository Trust Company, New York, New York ("DTC").
No representation is made by The Huntington National Bank, Grand Rapids, Michigan (the “Paying Agent”) as to the
completeness or accuracy of such information or as to the absence of material adverse changes in such information subsequent
to the date hereof. No attempt has been made by the School District or the Paying Agent to determine whether DTC is or will
be financially or otherwise capable of fulfilling its obligations. Neither the School District nor the Paying Agent will have any
responsibility or obligation to Direct Participants, Indirect Participants (both as defined below) or the persons for which they
act as nominees with respect to the Bonds, or for any principal, premium, if any, or interest payment thereof.
The Depository Trust Company ("DTC"), New York, NY, will act as securities depository for the securities (the
"Securities"). The Securities will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's
partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered
Security certificate will be issued for each issue of the Securities, each in the aggregate principal amount of such issue, and will
be deposited with DTC. If, however, the aggregate principal amount of any issue exceeds $500 million, one certificate will be
issued with respect to each $500 million of principal amount, and an additional certificate will be issued with respect to any
remaining principal amount of such issue.
1
DTC, the world's largest securities depository, is a limited-purpose trust company organized under the New York
Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve
System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency"
registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset
servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market
instruments (from over 100 countries) that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates
the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through
electronic computerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need for
physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers,
banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The
Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing
Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users
of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities
brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship
with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has a Standard & Poor's rating of AA+. The
DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC
can be found at www.dtcc.com.
Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a
credit for the Securities on DTC's records. The ownership interest of each actual purchaser of each Security ("Beneficial
Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written
confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing
details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which
the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by
entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will
not receive certificates representing their ownership interests in Securities, except in the event that use of the book-entry system
for the Securities is discontinued.
To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name
of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC.
The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect
any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC's records
reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or may not be the
Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf
of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect
Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among
them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Securities
may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities,
such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners
of Securities may wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit
notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the
registrar and request that copies of notices be provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed, DTC's
practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities unless
authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC mails an
Omnibus Proxy to School District as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting
or voting rights to those Direct Participants to whose accounts Securities are credited on the record date (identified in a listing
attached to the Omnibus Proxy).
Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such
other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants'
accounts upon DTC's receipt of funds and corresponding detail information from School District or Paying Agent, on payable
date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will
be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers
in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, Paying Agent,
2
or School District, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of
redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an
authorized representative of DTC) is the responsibility of School District or Paying Agent, disbursement of such payments to
Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the
responsibility of Direct and Indirect Participants.
A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to
Paying Agent, and shall effect delivery of such Securities by causing the Direct Participant to transfer the Participant's interest
in the Securities, on DTC's records, to Paying Agent. The requirement for physical delivery of Securities in connection with
an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Securities are transferred
by Direct Participants on DTC's records and followed by a book-entry credit of tendered Securities to Paying Agent's DTC
account.
DTC may discontinue providing its services as depository with respect to the Securities at any time by giving
reasonable notice to the School District or Paying Agent. Under such circumstances, in the event that a successor depository
is not obtained, Security certificates are required to be printed and delivered.
The School District may decide to discontinue use of the system of book-entry-only transfers through DTC (or a
successor securities depository). In that event, Security certificates will be printed and delivered to DTC.
The information in this section concerning DTC and DTC's book-entry system has been obtained from sources that
the School District believes to be reliable, but the School District takes no responsibility for the accuracy thereof.
TAX PROCEDURES
Article IX, Section 3, of the Michigan Constitution provides that the proportion of true cash value at which property
shall be assessed shall not exceed 50% of true cash value. The Michigan Legislature by statute has provided that property
shall be assessed at 50% of its true cash value, except as described below. The Michigan Legislature or the electorate may
at some future time reduce the percentage below 50% of true cash value.
On March 15, 1994, the electors of the State approved an amendment to the Michigan Constitution permitting the
Legislature to authorize ad valorem taxes on a non-uniform basis. The legislation implementing this constitutional amendment
added a new measure of property value known as "Taxable Value." Beginning in 1995, taxable property has two valuations
-- State equalized valuation ("SEV") and Taxable Value. Property taxes are levied on Taxable Value. Generally, Taxable
Value of property is the lesser of (a) the Taxable Value of the property in the immediately preceding year, adjusted for losses,
and increased or reduced by the lesser of the inflation rate or 5%, plus additions, or (b) the property's current SEV. Under
certain circumstances, therefore, the Taxable Value of property may be different from the same property's SEV.
When property is sold or transferred, Taxable Value is adjusted to the SEV, which under existing law is 50% of the
current true cash value. The Taxable Value of new construction is equal to current SEV. Taxable Value and SEV of existing
property are also adjusted annually for additions and losses.
Responsibility for assessing taxable property rests with the local assessing officer of each township and city. Any
property owner may appeal the assessment to the local assessor, to the local board of review, to the Michigan Tax Tribunal,
and ultimately to the Michigan appellate courts.
The Michigan Constitution also mandates a system of equalization for assessments. Although the assessors for each
local unit of government within a county are responsible for actually assessing at 50% of true cash value, adjusted for Taxable
Value purposes, the final SEV and Taxable Value are arrived at through several steps. Assessments are established initially
by the municipal assessor. Municipal assessments are then equalized to the 50% levels as determined by the county's
department of equalization. Thereafter, the State equalizes the various counties in relation to each other. SEV is important,
aside from its use in determining Taxable Value for the purpose of levying ad valorem property taxes, because of its role in
the spreading of taxes between overlapping jurisdictions, the distribution of various State aid programs, State revenue sharing
and in the calculation of debt limits.
3
Property that is exempt from property taxes, e.g., churches, government property, public schools, is not included
in the SEV and Taxable Value data in the Official Statement. Property granted tax abatements under Act 198, Public Acts
of Michigan, 1974, amended, is recorded on a separate tax roll while subject to tax abatement. The valuation of tax-abated
property is based upon SEV but is not included in either the SEV or Taxable Value data in the Official Statement except as
noted. Under limited circumstances, other state laws permit the partial abatement of certain taxes for other types of property
for periods of up to 12 years.
LEVY AND COLLECTION OF TAXES FOR PAYMENT OF THE BONDS AND BONDHOLDERS' REMEDIES
The Resolutions authorizing the issuance of the Bonds and State law obligate the School District to levy a tax
annually in an amount sufficient so that the estimated collections therefrom will be sufficient to pay promptly when due the
principal of and interest on the Bonds becoming due prior to the time of the next tax levy. The tax levy shall not be subject
to limitation as to rate or amount. Taxes for the payment of the principal of or interest on the Bonds are certified for
collection each year within the school tax levies. In the event of the failure of the proper officials to certify taxes for the
payment of the principal and interest requirements, a timely action in the nature of mandamus could compel certification and
collection of adequate taxes and thus prevent a default.
Registered owners of the Bonds may attempt to obtain a money judgment against the School District for the principal
amount of the Bonds or interest not paid when due and may periodically attempt to enforce the collection of the money
judgment by requiring the tax assessing officers for the School District to place the amount of such judgment on the next tax
rolls of the School District. The rights of the holders of the Bonds and the enforceability thereof are subject to bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws affecting creditors' rights heretofore
or hereafter enacted and their enforcement also may be subject to the exercise of judicial discretion in appropriate cases.
TRANSFER OUTSIDE BOOK-ENTRY-ONLY SYSTEM
In the event that the book-entry-only system is discontinued, the following provisions would apply to the Bonds.
The Paying Agent shall keep the registration books for the Bonds (the “Bond Register”) at its corporate trust office. Subject
to the further conditions contained in the Resolutions, the Bonds may be transferred or exchanged for one or more Bonds in
different authorized denominations upon surrender thereof at the corporate trust office of the Paying Agent by the registered
owners or their duly authorized attorneys; upon surrender of any Bonds to be transferred or exchanged, the Paying Agent shall
record the transfer or exchange in the Bond Register and shall authenticate replacement bonds in authorized denominations;
during the fifteen (15) days immediately preceding the date of mailing (the “Record Date”) of any notice of redemption or
any time following the mailing of any notice of redemption, the Paying Agent shall not be required to effect or register any
transfer or exchange of any Bond which has been selected for such redemption, except the Bonds properly surrendered for
partial redemption may be exchanged for new Bonds in authorized denominations equal in the aggregate to the unredeemed
portion; the School District and Paying Agent shall be entitled to treat the registered owners of the Bonds, as their names
appear in the Bond Register as of the appropriate dates, as the owners of such Bonds for all purposes under the Resolutions.
No transfer or exchange made other than as described above and in the Resolutions shall be valid or effective for any
purposes under the Resolutions.
SOURCES OF SCHOOL OPERATING REVENUE
On March 15, 1994, the electors of the State of Michigan approved a ballot proposition to amend the State Constitution
of 1963, in part, to increase the State sales tax from 4% to 6% as part of a complex plan to restructure the source of funding of
public education (K-12) in order to reduce reliance on local property taxes for school operating purposes and to reduce the per
pupil finance resource disparities among school districts. The Legislature has appropriated funds to establish a base foundation
allowance in 2015/16 ranging from $7,391 to $8,169 per pupil, depending upon the district's 1993/94 revenue. In the future,
the foundation allowance may be adjusted annually by an index based upon the change in revenues to the State school aid fund
and change in the total number of pupils statewide and the spread between the high and low per pupil allowance is reduced.
The foundation allowance is funded by locally raised property taxes plus State aid. The revenues for the State's contribution
to the foundation allowance are derived from a mix of taxing sources, including, but not limited to, a statewide property tax of
6 mills on all taxable property¹, a State sales and use tax, a real estate transfer tax and a cigarette tax. See "STATE AID
PAYMENTS" in this Official Statement for further information.
¹
“Taxable property” does not include industrial personal property.
4
School districts are required to levy a local property tax of not more than 18 mills or the number of mills levied in 1993
for school operating purposes, whichever is less, on non-homestead properties² in order for the school district to receive its per
pupil foundation allowance. An intermediate school district may seek voter approval for three enhancement mills for distribution
to local constituent school districts on a per pupil basis. Proceeds of the enhancement mills are not counted toward the
foundation allowance. Furthermore, school districts whose per pupil foundation allowance in 2015/16 calculates to an amount
in excess of $8,169 are authorized to levy additional millage to obtain the foundation allowance, first by levying such amount
of the 18 mills against homestead property³ as is necessary to hold themselves harmless and, if the 18 mills is insufficient, to
then levy such additional mills against all property uniformly as is necessary to obtain the foundation allowance. The School
District's per pupil foundation allowance does not exceed $8,169, and the School District does not levy such additional millage.
State aid appropriations and the payment schedule for state aid may be changed by the Legislature at any time. See “STATE
AID PAYMENTS” in this Official Statement for further information.
Public Act 196 of 2014 ("Act 196") amended the State School Aid Act for the 2014/15 fiscal year and increased the
School District's per pupil foundation allowance to $7,126. Act 196 included a one-time equity per pupil funding of $125 per
pupil that the School District is receiving because its foundation allowance would otherwise be below $7,126. Act 196 included
an additional payment to the School District to partially offset increases in the retirement plan contribution rate for the period
October 1, 2014 to September 30, 2015. Act 196 also included grant funding equal to $50 per pupil (a $2 decline in the per
pupil amount as compared to 2013/14) for school districts if they satisfy 7 out of 9 "best practices" relating to health and other
benefits coverage, competitive bidding for certain vendor services, schools of choice, online instruction programs or blended
learning opportunities, a dashboard/report card of the School District's financial management efforts, compensation methods
for teachers and administrators that significantly factor performance and accomplishments, use of collective bargaining
agreements that omit statutorily prohibited subjects of bargaining, implementation of a comprehensive guidance and counseling
program, and opportunities for K to 8 pupils to complete coursework or other learning experiences equivalent to 1 credit in a
language other than English. The Board and Administration satisfied such "best practices" requirements and the School District
included such grant funding in its 2014/15 General Fund Budget.
Public Act 85 of 2015 ("Act 85") amended the State School Aid Act for the 2015/16 fiscal year and increased the
School District's per pupil foundation allowance to $7,391. The 2015/16 per pupil foundation allowance is calculated based
upon the 2014/2015 per pupil foundation allowance, plus the 2014/15 per pupil equity payment, plus $140 for a net increase
per pupil of $105 for the School District. The prior fiscal year's per pupil equity payment and "best practices" and "performance
based" grants are eliminated. Act 85 also increased funding for at risk students and appropriated new funds for early literacy,
career and technical education middle college, and college and career preparation programs for eligible school districts. The
Board and Administration anticipate that the School District will be eligible for said additional funding and the School District
included such funding in its 2015/16 General Fund Budget.
²
“Non-homestead property” includes all taxable property other than principal residence, qualified agricultural property, qualified forestry
property, supportive housing property, property occupied by a public school academy and industrial personal property. Commercial personal
property is exempt from the first 12 mills of not more than 18 mills levied by school districts.
³
“Homestead property”, in this context, means principal residence, qualified agricultural property, qualified forestry property, supportive housing
property, property occupied by a public school academy, industrial personal property and commercial personal property.
THE SOURCES OF THE SCHOOL DISTRICT'S OPERATING REVENUE DO NOT IMPACT THE TAXING
AUTHORITY OF THE SCHOOL DISTRICT FOR PAYMENT OF GENERAL OBLIGATION UNLIMITED TAX SCHOOL
BONDS AND DO NOT AFFECT THE OBLIGATION OF THE SCHOOL DISTRICT TO LEVY TAXES FOR PAYMENT
OF DEBT SERVICE ON GENERAL OBLIGATION UNLIMITED TAX BONDS OF THE SCHOOL DISTRICT,
INCLUDING THE BONDS OFFERED HEREIN.
MICHIGAN PROPERTY TAX REFORM
On November 5, 2013, March 28, 2014, and April 1, 2014, Governor Snyder signed into law a package of bills
amending and replacing legislation enacted in 2012 to phase-out most personal property taxes in Michigan. The bills were
contingent on Michigan voters approving a ballot question authorizing a new municipal entity, the Local Community
Stabilization Authority ("LCSA"), to levy a local component of the statewide use tax and distribute that revenue to local units
of government to offset their revenue losses resulting from the personal property tax reform. On August 5, 2014, voters
approved that ballot question.
5
The bill package, together with the original 2012 legislation, created two new exemptions from the personal property
tax. Under the "small taxpayer exemption," the commercial and industrial personal property of each owner with a combined
true cash value in a local tax collecting unit of less than $80,000 is exempt from ad valorem taxes in that collecting unit
beginning in 2014. For businesses that do not qualify for the "small taxpayer exemption," all "eligible manufacturing personal
property" (personal property used more than 50% of the time in industrial processing or direct integrated support) purchased
and placed into service before 2006 or during or after 2013 becomes exempt beginning in 2016. Taxation on "eligible
manufacturing personal property" placed into service after 2006 but before 2013 will be phased-out over time; with the
exemption taking effect after the property has been in service for the immediately preceding 10 years. The legislation extends
certain personal property tax exemptions and tax abatements for technology parks, industrial facilities and enterprise zones that
were to expire after 2012, until the voter-approved personal property tax exemptions take effect.
Pursuant to voter approval in August 2014, the legislation also includes a formula to reimburse school districts for
100% of their lost operating millage revenue and lost sinking fund millage revenue. To provide the reimbursement, the
legislation reduces the state share of the use tax and authorizes the LCSA to levy a local component of the use tax and distribute
that revenue to qualifying local units. However, the reimbursement for the school district's operating millage will come from
the state use tax component, which is deposited into the school state aid fund.¹ While the legislation provides reimbursement
for prospective school operating losses, school districts will only be reimbursed for debt losses attributable to debt obligations
that voters approved before January 1, 2013 or were incurred before January 1, 2013. For the 2014-2015 and 2015-2016 fiscal
years, the State of Michigan will appropriate sufficient funds to the LCSA to reimburse school districts for such debt losses.
¹ Because the reimbursement funds are deposited into the state school aid fund, the legislature may, in the future, change the funding formulas in the State
School Aid Act of 1979 or appropriate funds therein for other purposes.
Because the Bonds are associated with debt obligations that received voter approval after January 1, 2013, the
School District will not be reimbursed for debt millage revenue it could have otherwise generated to make payments on the
Bonds.
LITIGATION
The School District has not been served with any litigation, administrative action or proceeding, nor, to the
knowledge of the School District, is there threatened any litigation restraining or enjoining the issuance or delivery of the
Bonds or in any manner questioning the proceedings and authority under which the Bonds are to be issued or affecting the
validity of the Bonds.
TAX MATTERS
State of Michigan
In the opinion of Thrun Law Firm, P.C., Novi, Michigan (“Bond Counsel”), based on its examination of the
documents described in its opinion, under existing State statutes, regulations and court decisions, the Bonds and the interest
thereon are exempt from all taxation in the State of Michigan, except inheritance and estate taxes and taxes on gains realized
from the sale, payment or other disposition thereof.
Federal
In the opinion of Bond Counsel based upon its examination of the documents described in its opinion, under existing
statutes, regulations, rulings and court decisions, the interest on the Bonds is excluded from gross income for federal income
tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals
and corporations. It should be noted, however, that certain corporations must take into account interest on the Bonds in
determining adjusted net current earnings for the purpose of computing the alternative minimum tax imposed on such
corporations. The opinions set forth in the preceding sentences are subject to the condition that the School District comply
with all requirements of the Internal Revenue Code of 1986, as amended (the “Code”), that must be satisfied subsequent to
the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal income
tax purposes. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross
income for federal income tax purposes to be retroactive to the date of issuance of the Bonds. Bond Counsel will express
no opinion regarding other federal tax consequences arising with respect to the Bonds.
6
There are additional federal tax consequences relative to the Bonds and the interest thereon. The following is a
general description of some of these consequences but is not intended to be complete or exhaustive and investors should
consult with their tax advisors with respect to these matters. Prospective purchasers of the Bonds should be aware that (i)
interest on the Bonds is included in the effectively connected earnings and profits of certain foreign corporations for purposes
of calculating the branch profits tax imposed by Section 884 of the Code, (ii) interest on the Bonds may be subject to a tax
on excess net passive income of certain S Corporations imposed by Section 1375 of the Code, (iii) interest on the Bonds is
included in the calculation of modified adjusted gross income for purposes of determining the taxability of social security
or railroad retirement benefits, (iv) the receipt of interest on the Bonds by life insurance companies may affect the federal
tax liability of such companies, (v) in the case of property and casualty insurance companies, the amount of certain loss
deductions otherwise allowed is reduced by a specific percentage of, among other things, interest on the Bonds, (vi) holders
of the Bonds may not deduct interest on indebtedness incurred or continued to purchase or carry the Bonds, and (vii)
commercial banks, thrift institutions and other financial institutions may deduct their costs of carrying certain obligations such
as the Bonds.
Original Issue Premium
For federal income tax purposes, the difference between the initial offering prices to the public (excluding
bondhouses and brokers) at which certain Bonds, as set forth on the cover of this Official Statement, are sold and the amounts
payable at maturity thereof (the “Premium Bonds”), constitutes for the original purchasers of the Premium Bonds an
amortizable bond premium. Such amortizable bond premium is not deductible from gross income but is taken into account
by certain corporations in determining adjusted current earnings for the purpose of computing the alternative minimum tax,
which may also affect liability for the branch profits tax imposed by Section 884 of the Code. The amount of amortizable
bond premium allocable to each taxable year is generally determined on the basis of a taxpayer’s yield to maturity determined
by using the taxpayer’s basis (for purposes of determining loss on sale or exchange) of such Premium Bonds and
compounding at the close of each six-month accrual period. The amount of amortizable bond premium allocable to each
taxable year is deducted from the taxpayer’s adjusted basis of such Premium Bonds to determine taxable gain upon
disposition (including sale, redemption or payment on maturity) of such Premium Bonds.
Future Developments
No assurance can be given that any future legislation or clarifications or amendments to the Code, if enacted into
law, will not contain proposals which could cause the interest on the Bonds to be subject directly or indirectly to federal or
state income taxation, adversely affect the market price or marketability of the Bonds, or otherwise prevent bondholders from
realizing the full current benefit of the status of the interest thereon.
It is to be understood that the rights of the holders of the Bonds and the enforceability thereof may be subject to
bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights heretofore or hereafter
enacted to the extent constitutionally applicable and that their enforcement may also be subject to the exercise of judicial
discretion in appropriate cases.
INVESTORS SHOULD CONSULT WITH THEIR TAX ADVISORS AS TO THE TAX CONSEQUENCES OF
THEIR ACQUISITION, HOLDING OR DISPOSITION OF THE BONDS, INCLUDING THE TREATMENT OF
ORIGINAL ISSUE PREMIUM, IF ANY.
APPROVED BY THE MICHIGAN DEPARTMENT OF TREASURY
The School District has received a letter from the Department of Treasury of the State of Michigan authorizing the
School District to issue the Bonds pursuant to the Revised Municipal Finance Act, Act No. 34, Public Acts of Michigan, 2001
(“Act 34”).
7
CONTINUING DISCLOSURE
Prior to delivery of the Bonds the School District will execute a Continuing Disclosure Agreement (the
“Agreement”) for the benefit of the holders of the Bonds and Beneficial Owners to send certain information annually and
to provide notice of certain events to certain information repositories pursuant to the requirements of Rule 15c2-12(b)(5) (the
“Rule”) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934. The information
to be provided on an annual basis, the events which will be noticed on an occurrence basis, and the other terms of the
Agreement are set forth in “APPENDIX C - FORM OF CONTINUING DISCLOSURE AGREEMENT.” Additionally, the
School District shall provide certain annual financial information and operating data, generally consistent with the information
in the tables under the headings “PROPERTY VALUATIONS - Historical Valuations” “MAJOR TAXPAYERS”, “TAX
RATES - Cassopolis Public Schools”, “STATE AID PAYMENTS”, “TAX LEVIES AND COLLECTIONS”, “LABOR
FORCE”, “PENSION FUND”, “DEBT STATEMENT - DIRECT DEBT”, “SCHOOL BOND QUALIFICATION AND
LOAN PROGRAM”, “SCHOOL ENROLLMENT” and “GENERAL FUND BUDGET SUMMARY” herein.
A failure by the School District to comply with the Agreement will not constitute an event of default under the
Resolutions authorizing issuance of the Bonds and holders of the Bonds or Beneficial Owners are limited to the remedies
described in the Agreement. A failure by the School District to comply with the Agreement must be reported in accordance
with the Rule and must be considered by any broker, dealer or municipal securities dealer before recommending the purchase
or sale of the Bonds in the secondary market. Consequently, such failure may adversely affect the transferability and liquidity
of the Bonds and their market price.
Except as disclosed below, the School District has not in the previous five years, failed to comply, in any material
respects, with any previous continuing disclosure agreements executed by the School District pursuant to the Rule. While
the School District filed its audited financial statements and annual disclosure information timely over the past five years in
compliance, in all material respects, with the previous continuing disclosure agreements executed by the School District, the
School District filed a late material event notice of credit rating changes affecting the bond insurer for a certain prior bond
issue of the School District. To the best of the School District’s knowledge, the School District did not receive notification
from the bond insurer or the rating agencies of the rating changes for the bond insurer. The School District has put systems
in place to identify and file material event notices in a timely manner in the future.
BOND COUNSEL’S RESPONSIBILITY
The fees of Thrun Law Firm, P.C., Novi, Michigan (“Bond Counsel”) for services rendered in connection with its
approving opinion are expected to be paid from Bond proceeds. Except to the extent necessary to issue its approving opinion
as to the validity of the Bonds and tax matters relating to the Bonds and the interest thereon, and except as stated below, Bond
Counsel has not been retained to examine or review, and has not examined or reviewed any financial documents, statements
or materials that have been or may be furnished in connection with the authorization, issuance or marketing of the Bonds and
accordingly will not express any opinion with respect to the accuracy or completeness of any such financial documents,
statements or materials.
Bond Counsel has reviewed the statements made in this Official Statement on the cover page and under the heading
"Information for Bidders", insofar as such statements summarize the language and effect of the Resolutions, the Bonds, the
Continuing Disclosure Agreement, the Constitution of the State of Michigan, the laws of the State of Michigan and federal
income tax laws and, further, the statements under such headings are fair and accurate summaries thereof in all material
respects. Except as otherwise disclosed on pages herein, Bond Counsel has not been retained to review and has not reviewed
any other portion of this Official Statement for accuracy or completeness, and has not made inquiry of any official or
employee of the School District or any other person and has made no independent verification of such other portions hereof,
and further has not expressed and will not express an opinion as to any portions hereof.
FINANCIAL CONSULTANT’S OBLIGATION
Public Financial Management, Inc., Ann Arbor, Michigan (the "Financial Advisor"), has been retained by the School
District to provide certain financial advisory services. The Financial Advisor assisted in the preparation of the Official
Statement and in other matters relating to the planning, structuring and issuance of the Bonds.
8
The information contained in the Official Statement was prepared in part by the Financial Advisor and is based on
information supplied by various officials from records, statements and reports required by various local, county or state
agencies of the State of Michigan. To the best of the Financial Advisor's knowledge, all of the information contained in the
Official Statement, which it assisted in preparing, while it may be summarized is complete and accurate. However, the
Financial Advisor has not and will not independently verify the completeness and accuracy of the information contained in
the Official Statement.
The Financial Advisor is a registered municipal advisor and is not engaged in the business of underwriting,
marketing or trading of municipal securities or any other negotiable instrument. The Financial Advisor's duties,
responsibilities and fees arise solely as financial advisor to the School District. The Financial Advisor's fees are expected
to be paid from Bond proceeds.
Further information concerning the Bonds may be secured from Public Financial Management, Inc., 3989 Research
Park Drive, Ann Arbor, Michigan 48108. Telephone: 734-668-6688.
CREDIT RATING
Standard & Poor's Ratings Services (“Standard & Poor’s”) has assigned its municipal bond rating of “AA-” to the
Bonds.
The aforementioned rating will reflect the sole view of the rating agency and there is no assurance that such rating
will be continued for any period of time, or that it will not be revised upwards or downwards or be withdrawn; a revision,
suspension, or withdrawal of the rating may have an effect on the market price of these securities and should be noted.
A brief description of the Standard & Poor’s rating definitions reads as follows:
Standard & Poor’s Ratings Services
Bonds rated “AAA” have the highest rating assigned. Capacity to pay interest and repay principal
is extremely strong.
Bonds rated “AA” qualify as high quality debt obligations. Capacity to pay principal and interest
is very strong, and in the majority of instances they differ from “AAA” issues only in a small degree.
Bonds rated “A” have a strong capacity to pay principal and interest, although they are somewhat
more susceptible to the adverse effects of change in circumstances and economic conditions.
Bonds rated “BBB” are regarded as having an adequate capacity to pay interest and repay principal.
Whereas it normally exhibits adequate protection parameters, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity to pay interest and repay principal for debt in
this category than in higher rated categories.
Plus (+) or Minus (-): To provide more detailed indications of credit quality, the ratings from “AA”
to “BBB” may be modified by the addition of a plus or minus sign to show relative standing within the major
rating categories.
ESTIMATED SOURCES AND USES OF FUNDS
Sources of Funds
Par Amount of Bonds
Production
Total Sources
$3,330,000.00
83,215.30
$3,413,215.30
Uses of Funds
Capital Projects Account
Deposit to Debt Fund
Underwriter's Discount
Costs of Issuance
Total Uses
$3,287,973.69
64,615.30
18,600.00
42,026.31
$3,413,215.30
9
CASSOPOLIS PUBLIC SCHOOLS
GENERAL FINANCIAL INFORMATION
AREA
The School District encompasses an area of approximately 129 square miles.
POPULATION
The estimated population totals for the School District and the U.S. Census reported for the Village of Cassopolis
are as follows:
School
District*
8,345
8,623
12,696
Village of
Cassopolis
1,774
1,740
1,822
* Estimated based on an extrapolation of the U.S. Census figures of the local units within the School District.
Year
2010
2000
1990
PROPERTY VALUATIONS
In accordance with Act 539, Public Acts of Michigan, 1982, as amended, and Article IX, Section 3 of the Michigan
Constitution, the ad valorem State Equalized Valuation (SEV) represents 50% of true cash value. SEV does not include any
value of tax exempt property (e.g. churches, governmental property) or property granted tax abatements under Act 198, Public
Acts of Michigan, 1974, as amended. As a result of Proposal A, ad valorem property taxes are assessed on the basis
of taxable value, which is subject to assessment caps. SEV is used in the calculation of debt margin and true cash
value. See “TAX PROCEDURES” herein for more information.
Taxable property in the School District is assessed by the local municipal assessor and is subject to review by the
County Equalization Department.
Historical Valuations*
Year
2015
2014
2013
2012
2011
Principal
Residence
$223,284,432
216,848,528
213,547,232
214,626,759
212,127,428
Non-Principal
Residence
$221,514,154
199,515,707
189,043,634
172,371,477
163,845,420
Total
Taxable Value
$444,798,586
416,364,235
402,590,866
386,998,236
375,972,848
State Equalized
Valuation
$641,906,088
589,939,813
583,424,076
557,169,225
564,047,524
* See "MICHIGAN PROPERTY TAX REFORM" herein for information regarding tax changes effective in the 2014 and 2016 tax years.
¹ Information included in this Official Statement under the headings “General Financial Information, “General Economic Information,” and “General School
Information” was obtained from the School District, unless otherwise noted.
10
H is t o r ic a l V a lu a t io n s
M illio n s
700
600
500
400
300
200
100
0
201 1
201 2
201 3
201 4
201 5
Y e ar
T a x a b le V a l u a t io n
2015 Taxable Value
Plus: 2015 IFT Taxable Valuation*
Total Equivalent Valuation
S t a te E q u a li z e d V a lu a ti o n
$444,798,586
20,523,161
$465,321,747
* Millage is levied at half rate against the amount listed. See “PROPERTY VALUATIONS - Industrial Facilities Tax (IFT)” herein.
Per Capita Valuation
2015 Per Capita Taxable Value
2015 Per Capita State Equalized Valuation
2015 Per Capita Estimated True Cash Valuation
$53,301.21
$76,921.04
$153,842.08
Industrial Facilities Tax (IFT)
Under the provisions of Act 198 of the Public Acts of Michigan, 1974 (“Act 198"), plant rehabilitation districts
and/or industrial development districts may be established. Businesses in these districts are offered certain property tax
incentives to encourage restoration or replacement of obsolete facilities and to attract new facilities to the area. An industrial
facilities tax (“IFT”) is paid, at a lesser effective rate and in lieu of ad valorem property taxes, on such facilities for a period
of up to 12 years. Qualifying facilities are issued abatement certificates for specific periods.
After expiration of the abatement certificate, the then-current SEV of the facility is returned to the ad valorem tax
roll. The owner of such facility may obtain a new certificate, provided it has complied with the provisions of Act 198.
The 2015 Taxable Value for the properties which have been granted IFT abatements within the School District’s
boundaries is $20,523,161 which is subsequently taxed at half rate. For further information see "PROPERTY
VALUATIONS - Historical Valuations" herein.
As part of the phase-out of Michigan's property tax on personal property, if a facility and personal property within
that facility were subject to an industrial facilities exemption on December 31, 2011, that exemption will remain intact and
continue to be subject to the industrial facilities tax until the expiration of the exemption at which time the eligible personal
property associated with the industrial facilities exemption becomes exempt under the new law. See "MICHIGAN
PROPERTY TAX REFORM" above.
11
TAX BASE COMPOSITION†
A breakdown of the School District’s 2015 Taxable Value by municipality, class and use are as follows:
Municipality
Calvin Township
Howard Township
Jefferson Township
La Grange Township
Newberg Township
Penn Township
Pokagon Township
Porter Township
Wayne Township
TOTAL
Principal¹
Residence
$35,099,725
1,184,595
35,846,850
33,845,091
3,366,599
107,863,795
1,318,387
4,708,647
50,743
$223,284,432
Non-Principal¹
Residence
$46,271,798
4,389,114
38,600,895
37,500,092
3,564,504
77,468,919
8,211,263
5,161,297
346,272
$221,514,154
Total Taxable
Value
$81,371,523
5,573,709
74,447,745
71,345,183
6,931,103
185,332,714
9,529,650
9,869,944
397,015
$444,798,586
Percent of
Total
18.29%
1.25
16.74
16.04
1.56
41.67
2.14
2.22
0.09
100.00%
¹ See “SOURCES OF SCHOOL OPERATING REVENUE” in this Official Statement for further details.
Class
Real Property
Personal Property
TOTAL
Taxable
Value
$376,273,181
68,525,405
$444,798,586
Percent of
Total
84.59%
15.41
100.00%
Use
Agricultural
Commercial
Industrial
Residential
Personal Commercial
Personal Industrial
Personal Utility
TOTAL
$50,385,283
12,090,870
4,314,963
309,482,065
2,972,814
2,578,968
62,973,623
$444,798,586
11.33%
2.72
0.97
69.58
0.67
0.58
14.16
100.00%
Taxable Valuation by Use
Personal
Commercial
0.67%
Personal
Industrial
0.58%
Personal
Utility
14.16%
Agricultural
11.33%
Commercial
2.72%
Industrial
0.97%
Residential
69.58%
† See "MICHIGAN PROPERTY TAX REFORM" herein for information regarding tax changes effective in the 2014 and 2016 tax years
Source: Cass County
MAJOR TAXPAYERS
The ten largest taxpayers in the School District and their 2015 Taxable Value totals and Industrial Facilities Tax
Valuation totals are as follows:
Taxable
IFT
Total
Product/Service
Value
+
Valuation =
Valuation
Taxpayer
Enbridge Energy
Utility
$46,545,343
$0
$46,545,343
K & M Machine Fabricating Inc. Machinery & equip.
1,894,500
13,380,700
15,275,200
Midwest Energy Cooperative
Utility
6,664,392
0
6,664,392
Vector Pipeline LP
Pipeline
5,462,915
0
5,462,915
Postle Real Estate Company LLC. Real estate
0
4,547,700
4,547,700
Lowe, Darlene Trust
Farm
3,866,200
0
3,866,200
Postle Operating LLC
Manufacturing of steal 1,412,600
1,930,600
3,343,200
IN & MI Power Co.
Utility
2,606,418
0
2,606,418
Stoler, Christopher & Susan
Farm
1,859,000
0
1,859,000
0
1,428,400
Reed Family Properties-Penn
Farm
1,428,400
TOTAL
$71,739,768
$19,859,000
$91,598,768
The Taxable Valuations of the major taxpayers represent 16.13% of the School District's 2015 Taxable Valuation
of $444,798,586 and their Total Valuations represent 19.69% of the School District's Total Equivalent Valuation of
$465,321,747.
Source: Cass County
12
TAX RATES - (Per $1,000 of Valuation)†
Each school district, county, township, special authority and city has a geographical definition which constitutes
a tax district. Since local school districts and the county overlap either a township or a city, and intermediate school districts
overlap local school districts and county boundaries, the result is many different tax rate districts.
Cassopolis Public Schools
Operating Non-Principal Residence
Debt
Sinking Fund
2015
18.0000
2.3800
0.8379
2014
18.0000
2.3000
0.8379
2013
18.0000
2.3000
0.8379
2012
18.0000
2.3500
0.8379
2011
18.0000
2.3500
0.8379
TOTAL PRINCIPAL RESIDENCE
TOTAL NON-PRINCIPAL RESIDENCE
3.2179
21.2179
3.1379
21.1379
3.1379
21.1379
3.1879
21.1879
3.1879
21.1879
The School District levies 18 mills for operating purposes on non-principal residence property and authorized debt
millage and sinking fund millage on all principal residence and non-principal residence property located within the School
District. The School District’s operating millage expires with the December 2018 levy. The School District’s sinking fund
millage expires with the December 2022 levy. See “SOURCES OF SCHOOL OPERATING REVENUE” in this Official
Statement.
† See "MICHIGAN PROPERTY TAX REFORM" herein for information regarding tax changes effective in the 2014 and 2016 tax years
Other Major Taxing Units
State Education Tax¹
Cass County
Cass Library
Penn Township
Lewis Cass I/S/D
Southwestern Community College
2014
6.0000
6.2200
0.6460
0.6824
2.2317
2.4280
2013
6.0000
6.2200
0.6460
0.6824
2.2317
2.4280
¹ The State of Michigan levies 6.00 mills for school operating purposes on all principal residence and non-principal residence property located within
the School District.
Source: Cass County
STATE AID PAYMENTS
The School District's primary source of funding for operating costs is the State School Aid per pupil foundation
allowance. The base foundation allowance has been set from $7,391 to $8,169 per pupil for fiscal year 2015/2016. In future
years, this allowance may be adjusted by an index based upon the change in revenues to the state school aid fund and the change
in the total number of pupils statewide. The State may reduce State School Aid appropriations at any time if the State's revenues
do not meet budget expectations. See "SOURCES OF SCHOOL OPERATING REVENUE" herein for additional information.
The following table shows a history and current estimates of the School District's total State School Aid revenues,
including categoricals and other amounts, the State Amount Received per Pupil and the Foundation Allowance per Pupil.
Year
2015/16 (Estimate)
2014/15
2013/14
2012/13
2011/12
State Amount
Received
per Pupil
$3,487
3,378
3,548
4,032
4,094
Total
$4,064,029
4,346,728
4,454,457
5,216,006
5,362,564
Source: Michigan Department of Education
13
Foundation
Allowance
per Pupil
$7,391
7,251
7,026
6,966
6,846
TAX LEVIES AND COLLECTIONS
The School District’s fiscal year begins July 1 and ends June 30. School District property taxes are due December
1 of each fiscal year and are payable without interest on or before the following February 14, respectively, and without
penalty on or before the following February 14. All real property taxes remaining unpaid on March 1st of the fiscal year
following the levy are turned over to the County Treasurer for collection. Cass County (the “County”) annually pays from
its Tax Payment Fund delinquent taxes on real property to all taxing units in the County, including the School District, shortly
after the date delinquent taxes are returned to the County Treasurer for collection.
A history of tax levies and collections for the School District are as follows:
Levy
Year
2015
2014
2013
2012
2011
Operating
Tax Levy
$3,980,630
3,532,925
3,341,870
3,145,473
3,033,470
Collections to
March 1 of Following Year
N/A
$2,860,932
80.98%
3,071,735
91.92
2,875,787
91.43
2,794,165
92.11
Collections Plus Funding
To June 30 of Following Year
N/A
$3,142,580
88.95%
3,341,869
100.00
3,145,473
100.00
3,024,795
99.71
The Tax Payment Fund is financed through the issuance of General Obligation Limited Tax Notes (GOLTNs) by
the County. Although the School District anticipates the continuance of this program by the County, the ability of the County
to issue such GOLTNs is subject to market conditions at the time of offering. In addition, Act 206, Public Acts of Michigan,
1893, as amended, provides in part that: “The primary obligation to pay to the county the amount of taxes and interest on
the taxes shall rest with the local taxing units and the state for the state education tax under the state education tax act... If
the delinquent taxes that are due and payable to the county are not received by the county for any reason, the county has full
right of recourse against the taxing unit or to the state for the state education tax... to recover the amount of the delinquent
taxes and interest...” On the third Tuesday in July in each year, a tax sale is held by the County at which lands delinquent
for taxes assessed in the third year preceding the sale, or in a prior year, are sold for the total of the unpaid taxes of those
years. Pursuant to Act 123, Public Acts of Michigan, 1999, as amended, property owners with taxes that are two years
delinquent will be foreclosed and the property will be sold at public auction. For example, property owners who fail to pay
their 2015 delinquent property taxes will lose their property in March 2018.
LABOR FORCE
A breakdown of the number of salaried employees of the School District and their affiliations with organized groups
are as follows:
Contract
Number
Bargaining Unit
Expiration
Employees
Administrators
6
N/A
N/A
Teachers
52
Local MEA/NEA
06/30/2016
Aides
8
MESPA
06/30/2016
Secretaries
5
MESPA
06/30/2016
Maintenance
1
MESPA
06/30/2016
Mechanic
1
MESPA
06/30/2016
Transportation
7
MESPA
06/30/2016
Food Service
1
MESPA
06/30/2016
N/A
N/A
Exempt Secretaries
2
TOTALS
83
The School District has not experienced a strike by any of its bargaining units within the past ten years.
PENSION FUND
For the period October 1 through September 30, the School District pays an amount equal to a percentage of its
employees' wages to the Michigan Public School Employees Retirement System ("MPSERS"), which is administered by the
State of Michigan. These contributions are required by law and are calculated by using the contribution rates and periods
provided in the table below of the employees' wages. The employer contribution rate for employees who first worked July 1,
2010 or later (Pension Plus members) for the time period July 1, 2010 to September 30, 2010 was 15.44%. For other employees,
the rate was 16.94% through September 30, 2010. Effective October 1, 2010, the employer contribution rate for all employees
except Pension Plus members increased to 19.41%. For Pension Plus members, the employer contribution rate was 17.91%.
14
On June 28, 2010, the Michigan Court of Claims issued an injunction in response to a challenge to the authority of the
State to require employees who began working before July 1, 2010, to contribute 3% of reportable wages to the retiree health
care trust at MPSERS. As a result, the State has adjusted the contribution rate due on employees wages paid between November
1, 2010 and September 30, 2011 to 20.66% for members who first worked prior to July 1, 2010 and 19.16% for Pension Plus
members. In March 2011, the Court of Claims granted the plaintiffs' motions for summary disposition finding that the
mandatory 3% contribution violated both the U.S. and Michigan Constitutions. The State appealed the ruling to the Michigan
Court of Appeals. In August of 2012, the Court of Appeals affirmed the decision of the Court of Claims. The State of Michigan
has filed an Application for Leave to Appeal with the Michigan Supreme Court.
On September 4, 2012, the governor signed Public Act 300 of 2012 ("Act 300") to reform MPSERS. Act 300 made
changes to employee contributions to their pensions and retiree health benefits, shifting the 3% pension contribution to retiree
health benefits. Act 300 increased the amount retirees contribute to their health insurance, and employees are required to choose
to increase contributions to their pension plan, maintain current contribution rates and freeze existing benefits, or freeze existing
pension benefits and move into a defined contribution plan. In addition, the legislation ended retiree health benefits for new
hires. On November 29, 2012, the Ingham County Circuit Court, sitting as the Court of Claims, ruled that the substantive
provisions of the Act 300 were constitutional except for one particular provision relating to an "election window" for healthcare
benefits. The Legislature promptly adopted legislation which was signed into law by the Governor addressing the constitutional
concerns of the election window raised by the Court of Claims. Two public school employee unions appealed the Court of
Claims decision to the Michigan Court of Appeals, which affirmed the Court of Claims' ruling on January 14, 2014. The unions
appealed the matter to the Michigan Supreme Court. On April 8, 2015, the Michigan Supreme Court upheld Act 300 by ruling
that the required employee elections to participate and contribute to retiree healthcare and defined benefit pension plans are
constitutional under both the Michigan and United States Constitutions. It is unknown at this time if plaintiffs will appeal this
decision to the federal court. The Michigan Supreme Court has not yet ruled on the mandatory 3% retiree health contributions
made by members from July 2010 to September 2012 before Act 300 took effect.
The School District's estimated contribution to MPSERS for 2015/16 the contributions for the previous four years are
shown below.
Contribution Period
Oct. 1, 2015-Sept. 30, 2016
Oct. 1, 2014-Sept. 30, 2015
Oct. 1, 2013-Sept. 30, 2014
Feb. 1, 2013-Sept. 30, 2013
Oct. 1, 2012-Jan. 31, 2013
Oct. 1, 2011-Sept. 30, 2012
Contribution Rate
25.78 - 27.78%
25.78 - 27.27
24.79 - 26.96
24.32 - 26.96
25.36
24.46
Fiscal Year Ending
June 30
2016 (estimate)
2015
2014
2013
2012
Source: Audited financial statements.
Pension Plus
25.56 - 27.13%
25.70 - 27.19
25.56 - 26.63
25.13 - 26.20
24.13
23.23
Contributions to
MPSERS
$1,320,000
1,303,073
1,219,010
1,315,599
1,249,887
Note: Effective for fiscal years beginning after June 15, 2014, GASB Statement 68 requires all reporting units in a multi-employer cost sharing pension
plan to record a balance sheet liability for their proportionate share of the net pension liability of the plan. The School District will be required to implement
GASB 68 in their year ended June 30, 2015 financial statements. Preliminary unaudited estimates from the State for fiscal year 2013 indicate a potential
pension liability of approximately $12,899,106. (Net pension liability 8% discount rate per ORS)
OTHER POST-EMPLOYMENT BENEFITS
MPSERS is a cost-sharing, multi-employer, statewide plan. Pension benefits and retiree health benefits are
established by law and funded through employer contributions. The cost of retiree health benefits is funded annually on a
pay-as-you-go basis, with retirees paying some of the costs. Current year liability for retiree health benefits is reflected in
the figures provided above. Further information regarding MPSERS, including retiree health benefits, can be found at:
www.michigan.gov/orsschools.
15
DEBT STATEMENT (As of October 26, 2015 and including the Bonds described herein)
DIRECT DEBT
Dated
Date
05/22/2003
10/22/2009
06/29/2010
06/29/2010
11/12/2015
Purpose
Type
Building & Site (QZAB)
LTNQ
Energy Con. Bond (QZAB) LTNQ
Building & Site (RZEDB)
UTQ
Building & Site (QSCB)
UTQ
Building & Site
UTNQ
Interest
Spread
0.00
0.00
6.50%
4.30-6.25
1.00-3.00
Maturities
05/22/2018
10/22/2024
05/01/28-30
05/01/16-27
05/01/16-25
TOTAL DIRECT DEBT
Amount
Outstanding
$2,230,000
1,640,000
2,640,000
10,705,000
3,330,000
$20,545,000
OVERLAPPING DEBT
Percent
99.89%
64.30
98.08
4.51
0.55
22.44
20.49
Amount
Municipality
Outstanding
Calvin Township
$271,000
Jefferson Township
275,000
Penn Township
838,000
Porter Township
6,590,000
Wayne Township
608,000
Cass County
12,308,000
Southwestern Com. College 25,000,000
District
Share
$270,702
176,825
821,910
297,209
3,344
2,761,915
5,122,500
NET OVERLAPPING DEBT
NET DIRECT AND OVERLAPPING DEBT
$9,454,405
$29,999,405
Source: Municipal Advisory Council of Michigan.
DEBT RATIOS
Per Capita (8,345)
Net Direct Debt
Net Direct and Overlapping Debt
$2,461.95
$3,594.90
Ratio to 2015 Taxable Valuation ($444,798,586)
Net Direct Debt
Net Direct and Overlapping Debt
4.62%
6.74%
Ratio to 2015 State Equalized Valuation ($641,906,088)
Net Direct Debt
Net Direct and Overlapping Debt
3.20%
4.67%
Ratio to 2015 Estimated True Cash Valuation ($1,283,812,176)
Net Direct Debt
Net Direct and Overlapping Debt
1.60%
2.34%
DEBT HISTORY
The School District has no record of default.
FUTURE FINANCING
The School District does not anticipate additional capital financing in the foreseeable future.
16
OTHER BORROWING
The School District has the following borrowing outstanding:
Date
08/20/2015
08/20/2015
08/25/2011
11/11/2013
Description
State Aid Note
State Aid Note
Copiers
Bus Lease
Interest
Rate
0.76%
0.64%
–
–
Maturity
Date
07/20/2016
07/20/2016
08/15/2016
07/15/2017
Balance
$679,570
320,430
7,934
141,254
LEGAL DEBT MARGIN
2015 State Equalized Valuation
Debt Limit (15% of 2015 State Equalized Valuation)
Debt Outstanding, including Bonds described herein
Less Bonds not subject to Debt Limit*
$641,906,088
$96,285,913
$20,545,000
(13,345,000)
Total Subject to Debt Limit
Additional Debt Which Could Be Legally Incurred
7,200,000
$89,085,913
* Section 1351(3) of Act 451, Public Acts of Michigan, 1976, as amended, provides that the bonded indebtedness of a school district shall not exceed 15%
of the total assessed valuation of the district. Bonds not included in the computation of the legal debt margin are (1) any bond qualified under Article
IX, Section 16 of the Michigan Constitution of 1963, and (2) deficit budget bonds as authorized under Section 1356. In addition, Section 605 of Act
34, Public Acts of Michigan, 2001, as amended, provides, in relevant part, that debt evidenced by a refunding security shall not be deemed to be within
any statutory or charter limitation of outstanding debt limit.
SCHOOL BOND QUALIFICATION AND LOAN PROGRAM
The School District does not currently have a School Loan Revolving Fund balance under the School Bond
Qualification and Loan Program.
Source: State of Michigan Department of Treasury
17
GENERAL ECONOMIC INFORMATION
LOCATION AND AREA
The School District is located the following distances from these commercial and industrial areas:
27
31
50
85
150
miles southwest of Kalamazoo
miles east of Benton Harbor
miles northeast of South Bend, Indiana
miles southwest of Lansing
miles west of Detroit
POPULATION BY AGE
The 2010 U.S. Census estimate of population by age for Cass County are as follows:
Number
52,293
13,633
30,305
8,355
Total Population
0 through 19 years
20 through 64 years
65 years and over
Median Age
Percent
100.00%
26.07
57.95
15.98
42.6 years
INCOME
The 2010 U.S. Census estimate of household income for Cass County are as follows:
Number
20,201
1,434
1,172
2,646
2,465
3,273
3,879
2,545
1,879
566
343
HOUSEHOLDS BY INCOME
Less than $10,000
$10,000 to $14,999
$15,000 to $24,999
$25,000 to $34,999
$35,000 to $49,999
$50,000 to $74,999
$75,000 to $99,999
$100,000 to $149,999
$150,000 to $199,999
$200,000 or more
Median Income
Mean Income
$45,177
$58,267
Source: www.census.gov
18
Percent
100.00%
7.10
5.80
13.10
12.20
16.20
19.20
12.60
9.30
2.80
1.70
EMPLOYMENT CHARACTERISTICS*
The following employers located within the School District’s boundaries and surrounding communities offer
employment opportunities.
Employer
Within the School District (30 or more employees)
North American Forest Products
K & M Machine & Fabrication
Ameri-Kart
Duo-Form Corp.
Cassopolis Public Schools
Brothers Bakery
Hess Industries Inc.
Midwest Timber, Inc.
Mobility Facility Engineering Inc
Cass County (100 or more employees)
Cotech Division
Modine Heat Transfer
Berrybrook Enterprises
Armstrong International
Inverness Casting Corp.
Borgess-Lee Memorial Hospital
Dowagiac Union School District
Jessup Door Co. Inc.
Du-Well Products, Inc.
Southwestern Michigan College
National Copper Products, Inc.
Lee Memorial Hospital
Cass County
Aluminum Casting Division
IKU Inc.
Ameriwood Furniture
Lyons Industries, Inc.
Auto Cam Corp.
Creative Foam Corp.
Fab Masters Company, Inc.
Product/Service
Approx. No.
Employed
Saw & planing mills
Machine shop
Industrial waste
Plastic bathtubs, etc.
Education
Donut bakery
Tool & die
Wood preserving
Modular Buildings
260
210
170
110
83
60
50
47
30
Foundries
Refrigeration, AC
Fruit & vegetable grower
Valves & pipe fittings
Aluminum die casting
Health care
Education
Millwork
Die castings
Education
Copper tubing
Health care
Government
Aluminum die casting
Cylinders, actuators
Furniture & fixtures
Shower doors
Screw machine products
Foam automotive products
Custom aluminum
850
550
450
300
300
260
254
250
249
200
200
195
190
180
176
175
150
125
100
100
* The approximate number of employees listed above are as reported in the sources indicated below. Because of reporting time lags and other factors
inherent in collecting and reporting such information, the numbers may not reflect recent changes in employment levels, if any.
Source: 2015 Michigan Manufacturers Directory, 2015 Crain’s Book of Lists, Manta Company Intelligence website, the Michigan Economic Development
Council (“MEDC”), and individual employers.
EMPLOYMENT BREAKDOWN
The 2010 U. S. Census reports the occupational breakdown of persons 16 years and over for Cass County as follows:
Percent
Number
PERSONS BY OCCUPATION
23,405
100.00%
Professional Specialty Occupations
6,119
26.14
Service Occupations
3,667
15.67
Sales & Office Occupations
5,287
22.59
Natural Resources, Construction, and Maintenance Occupations
2,627
11.22
Transportation & Material Moving Occupations
5,705
24.38
19
The breakdown by industry for persons 16 years and over in Cass County are as follows:
Number
23,405
568
1,738
6,265
666
2,505
1,251
249
875
1,402
4,626
1,817
909
534
PERSONS BY INDUSTRY
Agriculture, Forestry, Fishing, Hunting & Mining
Construction
Manufacturing
Wholesale Trade
Retail Trade
Transportation
Information
Finance, Insurance, & Real Estate
Professional & Management Services
Educational, Health & Social Services
Arts, Entertainment, Recreation and Food Services
Other Professional and Related Services
Public Administration
Percent
100.00%
2.43
7.43
26.77
2.85
10.70
5.35
1.06
3.74
5.99
19.77
7.76
3.88
2.28
Source: www.census.gov
UNEMPLOYMENT*
The Michigan Department of Technology, Management & Budget Information, reports unemployment averages for
Cass County as compared to the State of Michigan are as follows:
County of
Cass
4.5%
6.6
8.3
8.5
9.7
2015 Year to Date (August)
2014 Annual Average
2013 Annual Average
2012 Annual Average
2011 Annual Average
State of
Michigan
5.2%
7.3
8.8
9.1
10.4
*not seasonally adjusted
BANKING
The following banks have branches located within the School District’s boundaries. Deposits are as reported in the
Accuity American Financial Directory, July - December 2015.
Bank
Fifth Third Bank
GW Jones Exchange Bank
Main Office
Cincinnati, OH
Marcellus, MI
20
Total State-Wide
Deposits
N/A
$57,431,000
GENERAL SCHOOL INFORMATION
DESCRIPTION
The School District currently operates one elementary school and one junior/senior high school. The School
District’s 2014/15 student enrollment is 951. A staff of 52 teachers, 6 administrators and 25 support personnel are employed
by the School District.
BOARD OF EDUCATION
The Board of Education consists of seven members who are elected at large for four-year overlapping terms. The
Board annually elects a President, Vice President, Treasurer and Secretary. The Board is responsible for the selection and
appointment of the Superintendent of Schools. The Board meets as a single body to set or amend policy, develop long range
educational goals and act upon recommendations of the Superintendent of Schools. The Board is also responsible for
adopting and periodically amending the operating budget and evaluating school programs in accordance with governing laws.
SCHOOL ENROLLMENT
Historical Enrollment
The School District’s historical enrollment totals (Fall Pupil Count Day) are as follows:
School Year
2014/15
2013/14
2012/13
2011/12
2010/11
Enrollment
951
970
1,062
1,113
1,174
School Year
2009/10
2008/09
2007/08
2006/07
2005/06
Enrollment
1,213
1,238
1,290
1,272
1,308
Enrollment by Grade
The enrollment by grade for the school year 2014/15 (Fall Pupil Count Day) are as follows:
Kindergarten
First
Second
Third
Fourth
Fifth
Sixth
Seventh
Eighth
71
80
69
51
57
73
64
67
77
Ninth
Tenth
Eleventh
Twelfth
Sub Total
Special Ed.
Alternative Ed.
67
66
74
68
884
6
61
TOTAL
951
Projected Enrollment
The projected enrollment totals for 2019/20 are as follows:
K-6
7-8
9-12
436
115
252
TOTAL
803
21
EXISTING SCHOOL FACILITIES
School
Elementary
Frank Squires Early Elem.
Sam Adams
Junior/High School
Ross Beatty
Grades
Year
Completed
Remodeling/
Additions
Type of
Construction
K-2
3-6
1959,1973,1996
1975,1996
2010
2010
Masonry
Masonry
7 - 12
1996
2010
Masonry
OTHER SCHOOLS
The followings are schools are located within the School District’s boundaries.
Grades
Served
K-8
Pre - K
9 - 12
School
Calvin Center SDA School
Cassopolis Head Start
Cassopolis Alternative
Approximate
Enrollment
11
20
90
OTHER MATTERS
All information contained in this Official Statement is subject, in all respects, to the complete body of information
contained in the original source thereof and no guaranty, warranty or other representation is made concerning the accuracy
or completeness of the information herein. In particular, no opinion or representation is rendered as to whether any projection
will approximate actual results, and all opinions, estimates and assumptions, whether or not expressly identified as such,
should not be considered statements of fact.
The School District certifies that to its best knowledge and belief, this Official Statement, insofar as it pertains to
the School District and its economic and financial condition, is true and correct as of the date of this Official Statement, and
does not contain, nor omit, any material facts or information which would make the statements contained herein misleading.
CASSOPOLIS PUBLIC SCHOOLS
/s/Tracy D. Hertsel
SUPERINTENDENT
22
APPENDIX A - BUDGET
CASSOPOLIS PUBLIC SCHOOLS
General Fund Budget Summaries
For Fiscal Years Ending June 30, 2015 and June 30, 2016
2014/15
2015/16
Final
Adopted
Budget
Budget
Local Sources
$3,757,014
$3,823,255
State Sources
4,717,840
4,077,805
Federal Sources
1,095,983
603,380
Other Sources
TOTAL REVENUE
66,983
$9,637,820
25,000
$8,529,440
REVENUE
EXPENDITURES
INSTRUCTION:
$3,775,022
$3,797,660
Added Needs
Basic Programs
1,152,648
997,077
Adult/ Cont. Education
197,505
5,125,175
236,190
5,030,927
$377,883
$340,115
TOTAL INSTRUCTION
SUPPORTING SERVICES:
Pupil
Instructional
94,950
91,555
General Administration
343,132
371,890
School Administration
396,577
498,990
Business Services
298,915
359,845
1,193,693
1,025,440
Operations/Maintenance
Pupil Transportation
477,042
485,095
Support Services Central
251,144
178,175
Other/ Athleticx
269,559
258,585
Community Services
TOTAL SERVICES
TOTAL EXPENDITURES
Outgoing Transfers & Other Transactions
TOTAL EXPENDITURES
REVENUE OVER (UNDER) EXPENDITURES
BEGINNING FUND BALANCE, JULY 1
ESTIMATED ENDING FUND BALANCE, JUNE 30
A-1
15,782
0
3,718,677
3,609,690
$8,843,852
$8,640,617
296,468
159,712
$9,140,320
$8,800,329
$497,500
($270,889)
945,687
1,443,187
$1,443,187
$1,172,298
[THIS PAGE INTENTIONALLY LEFT BLANK]
Principals
---———--——
Dale J. Abraham, CPA
Michael T. Gaffney, CPA
Steven R. Kirinovic, CPA
Aaron M. Stevens, CPA
Eric J. Glashouwer, CPA
Alan D. Panter, CPA
William I. Tucker IV, CPA
ABRAHAM & GAFFNEY, P.C.
3511 Coolidge Road
Suite 100
East Lansing, MI 48823
(517) 351-6836
FAX: (517) 351-6837
Certified Public Accountants
INDEPENDENT AUDITOR’S REPORT
Change in Accounting Principles
As discussed in Note O to the financial statements, the District implemented GASB Statement No. 68,
Accounting and Financial Reporting for Pensions, during the year. As a result, the financial statements now
recognize the District’s unfunded defined pension benefit obligation as a liability for the first time, and more
comprehensively and comparably measures the annual costs of pension benefits. The statement also
enhances accountability and transparency through reviewed note disclosures and required supplemental
information (RSI). Our opinions are not modified with respect to this matter.
Also as discussed in Note O to the financial statements, the District implemented GASB Statement No. 71,
Pension Transition for Contributions Made Subsequent to the Measurement Date - An Amendment of GASB
Statement No. 68, during the year. The District recognized a beginning deferred outflow of resources for its
pension contributions made subsequent to the measurement date of the beginning net pension liability. Our
opinions are not modified with respect to this matter.
Other Matters
To the Board of Education
Cassopolis Public Schools
Cassopolis, Michigan
Required Supplementary Information
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund, and
the aggregate remaining fund information of Cassopolis Public Schools (the District) as of and for the year
ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the District’s
basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
B-1
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation
of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we
express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, each major fund, and the aggregate remaining fund information of
Cassopolis Public Schools, as of June 30, 2015, and the respective changes in financial position thereof for the
year then ended in accordance with accounting principles generally accepted in the United States of America.
Auburn Hills East Lansing Grand Rapids St. Johns
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Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, budgetary comparison information, and schedules of proportionate share of net pension
liability and contributions, as identified in the table of contents, be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management about the
methods of preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the information because
the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District’s basic financial statements. The combining nonmajor fund financial statements are
presented for purposes of additional analysis and are not a required part of the basic financial statements.
The combining nonmajor fund financial statements are the responsibility of management and were derived from
and relates directly to the underlying accounting and other records used to prepare the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or to the
basic financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the combining nonmajor fund financial
statements are fairly stated in all material respects in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated October 21, 2015, on
our consideration of the District’s internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the District’s internal control over financial reporting and compliance.
ABRAHAM & GAFFNEY, P.C.
Certified Public Accountants
October 21, 2015
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APPENDIX B - AUDIT
The auditor has not examined or reviewed any financial documents, statements or materials that have been or may be
furnished in connection with the authorization, issuance or marketing of the Bonds and accordingly will not express any
opinion with respect to the accuracy or completeness of any such financial documents, statements or materials.
Cassopolis Public Schools
Cassopolis Public Schools
MANAGEMENT’S DISCUSSION AND ANALYSIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2015
June 30, 2015
As management of the Public Schools of Cassopolis (the “District”), a K-12 school district located in Cass
County, Michigan, we offer readers of the District’s financial statements this narrative overview and analysis of
the financial activities of the District for the fiscal year ended June 30, 2015. Please read it in conjunction with
the District’s financial statements, which immediately follows this section.
Overview of the Financial Statements:
The District’s basic financial statements consist of two parts: Management’s Discussion and Analysis (this
section) and the basic financial statements. This report also contains other supplementary information.
The basic financial statements include two kinds of statements that present different views of the District:
x
The first two statements are the District-wide financial statements that provide both short-term and longterm information about the District’s overall financial status. These statements present an aggregate
view of the District’s finances and a longer-term view of those finances.
x
The next statements are fund financial statements that focus on individual funds of the District. These
statements look at the District’s operations in more detail than the District-wide financial statements by
providing information about the District’s most significant funds - the General Fund, and Debt Funds,
with all the other funds presented in one column as non-major funds.
The statement of fiduciary assets and liabilities-agency fund presents financial information about activities for
which the District acts solely as an agent for the benefit of students and others.
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District-wide financial statements. The District-wide financial statements report information about the District
as a whole using accounting methods similar to those used by private-sector companies. The statement of net
position and the statement of activities, which appear first in the District’s financial statements, include all assets
and liabilities and use the accrual basis of accounting. This means that all of the current year’s revenues and
expenses are taken into account regardless of when cash is received.
The two District-wide financial statements report the Districts net position and how it changed. Net position - the
difference between the District’s assets and liabilities - is one way to measure the District’s financial health.
Over time, increases or decreases in net position may serve as useful indicator of whether the financial position
of the District is improving or deteriorating.
The relationship between revenues and expenses is the District’s operating results. However, it should be
noted that unlike most private-sector companies where improving shareholder wealth is the goal, the District’s
goal is to provide services to our students. Therefore, in order to assess the overall health of the District, one
must consider many nonfinancial factors such as the quality of education provided, breadth of curriculum
offered, condition of school facilities, and the safety of the schools.
Fund Financial Statements
Fund Financial Statements. The District’s fund financial statements provide detailed information about the
most significant funds - not the District as a whole. Some funds are required to be established by the State law
and by bond covenants, though the District may establish other funds to help control and manage money for the
particular purposes. It may also establish other funds to show that it is meeting legal responsibilities for using
certain taxes, grants and other money.
The fund level financial statements are reported on a modified accrual basis, which measures only those
revenues that are “measurable” and “currently available”. Expenses are recognized to the extent that they are
normally expected to be paid with current financial resources.
The fund financial statements are formatted to comply with the legal requirements of the Michigan Department
of Education’s Bulletin 1022. The District’s major instructional and instructional support activities are reported in
the General Fund. Additional activities are reported in their relevant funds including:
x
x
x
Debt Service Fund - consisting of 2003 QZAB, 2010 Series A Bonds, 2010 Series B Bonds, 2009
Energy Conservation Improvement Bonds.
Special Revenue Fund - consisting of the Food Service Fund.
Capital Projects Fund - consisting of the Sinking Fund.
In the fund financial statements, purchased capital assets are reported as expenditures in the year of
acquisition. Assets are capitalized at the fund level. The issuance of debt is recorded as a financial resource.
The current year’s payments of principal and interest on long-term obligations are recorded as expenditures.
Future debt obligations are not recorded at the fund level.
The District is the trustee, or fiduciary, for its student activity funds. All of the District’s fiduciary activities are
reported in a separate statement of assets and liabilities - agency fund. We exclude these activities from the
District’s other financial statements because the District cannot use these assets to finance its operations. The
District is responsible for ensuring that the assets reported in these funds are used for their intended purposes.
District Wide Financial Statements:
Statement of Net Position
As stated earlier, the statement of net position provides the perspective of the District as a whole. The analysis
below focuses on the net position (see Table 1). The District’s net position was ($987,644) at June 30, 2015.
The change in net position of the District’s governmental activities is $798,299 (see Table 2). The table below
provides a summary of the District’s net position as of June 30, 2015 and June 30, 2014:
The statement of net position and statement of activities report the governmental activities for the District, which
encompass all of the District’s services including instruction, supporting services, community services, food
services, and athletics. Property taxes, unrestricted state aid, state grants and f...
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