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Letter from Supt. Lobban sets the record straight on upcoming Non-Homestead Operational Renewal
Michelle Edwards

Dear DCS Families and Community:

It has come to my attention that some misinformation about the school district’s August 4 Non-Homestead Operations Millage renewal was shared at Monday’s Davison Township Board meeting.

First, the Non-Homestead Operations Millage renewal should not be confused with the Building and Site Sinking Fund, approved by voters in the fall of last year, or the 2020 Bond project. Unfortunately, it appears that this was the case following remarks made by a township official at the July 13 public meeting.

Hopefully, you have seen information from the District about the upcoming Non-Homestead Operations renewal election. We have shared information in a variety of ways - through district publications, on social media, and, most recently, in an insert in the local newspaper, the Davison Index. The Non-Homestead Operations millage renewal is NOT collected from levying homeowners/taxpayers' primary residence within Davison Community Schools boundaries. This renewal applies to Non-Homestead property only (business property, rental housing, vacation homes) and generates more than $5.4 million each year for district operations. The renewal is to continue the levy for another 10 years and has been in place since 1994.

Prior to Proposal A, public schools in Michigan were financed primarily by local property taxes. The State did not levy property taxes for school purposes. In December 1993, Proposal A was passed, and the Legislature adopted the foundation approach - used today - to fund education. 

Rather than millage rates being applied uniformly on all property, different rates are now applied to homestead and non-homestead property. Owner-occupied primary residences are classified as “homestead” property and are taxed at six mills. Non-homestead property generally includes industrial, commercial, and second homes, and is taxed at 24 mills (six mills base plus 18 more mills, which requires voter approval). 

The State of Michigan assumes school districts will levy and collect up to the full 18 mills, and the state subtracts this amount from each district’s per-pupil allowance they provide the District, whether the District collects it or not! Under Proposal A, the state provides the majority of the funding to public schools by levying a uniform rate of six mills on all property, but to receive full funding, local school districts must levy and collect 18 mills from Non‐Homestead property taxes in their local school district. 

The Non-Homestead Operating Millage is used for just that - district operations. The revenue generated by the operating millage is deposited into the district’s General Fund and is not dedicated to any single program or department. Instead, it helps support the district’s overall operating budget, which includes:

  • Classroom instruction and teacher salaries
  • Student support services, including counseling and special education
  • School administrators and support staff
  • Transportation
  • Technology and instructional materials
  • Building operations and maintenance
  • Safety and security measures
  • Athletics, extracurricular activities, and other student programs

Like most school operating revenue, these funds support the district’s overall educational program and help maintain the services provided to approximately 5,400 students each year. 

The Building and Site Fund was renewed last year at a millage rate of 1.3497 mills. This generates approximately $1.4 million annually and is used for facility improvements and repairs. Within the last year, money from this fund has been used to:

  • Renovate the locker room and restroom facilities at Rodney Collins Field, 
  • Fob and re-key doors at the high school
  • Renovate stairwells at Davison High School and Davison Middle School
  • Add protective security film on windows throughout the District
  • Restore locker rooms at Davison High School
  • Install new water heaters, replace VRF lines, and control systems
  • Currently is funding the interior renovations taking place in the main hallway at Davison High School
  • It will also be used to add secure vestibules at Davison Middle School, Hahn Intermediate, Central Elementary, and GSRP, the only remaining school buildings that have not yet had them built.
  • Create instructional space for construction trades by building a pole barn at Cardinal Station, moving the copy center from the Alternative Education to Cardinal Station, and the current renovation and reconfiguration of CTE classroom spaces at the Alternative Education building.
  • GSRP roof at Central Elementary and Cardinal Station flat roof
  • DHS Girls’ Athletic Locker Room
  • Automotive classroom RTU
  • Painting and EIFs repair to the outside of Davison High School

For more details about projects paid for with sinking fund monies, please visit this page on our website.

Now, to address the 2020 Bond. On March 10, voters approved a $71.3 million bond that was to be used to address three key initiatives: safety and security, technology and renovations. Also included was the addition of a new Performing Arts Center, turf at Cardinal Stadium and the addition of classrooms at Thomson Elementary and a gym at Gates Elementary.

First, let’s review the items that have been completed: 

  • New secure entry vestibules at Davison High School, Davison Alternative Education, Gates Elementary, Hill Elementary, Siple Elementary, Cardinal’s Nest, and Thomson Elementary
  • Relocation of bus lot to Cardinal Station
  • A safety connector between the high school and the alternative education buildings
  • Improved LED lighting upgrades district-wide
  • Improved traffic circulation/separate bus loops at Davison High School, Davison Middle School, Hahn Intermediate, Siple Elementary, Thomson Elementary
  • An extensive abatement project to remove asbestos at Davison High School over the course of the last six years
  • New fire alarm and suppression system for Davison High School
  • Boilers, chillers, heating equipment, and water heaters at the Alternative Education, Middle School, High School, and Hahn 
  • Roof replacements at Siple, Alternative Education, and Davison High School Gym
  • New sanitary pump station at Hill Elementary
  • Addition of two classrooms at Thomson Elementary
  • New gymnasium bleachers at Davison High School
  • Installation of turf on the Cardinal Stadium football field
  • Construction of the track & field events area, and additional restrooms  at Cardinal Stadium
  • A new weight room, wrestling room, community meeting room, and Early College lecture hall to replace the old auditorium, choir, and band classrooms.
  • New main entrance, attendance, and security offices at Davison High School
  • State-of-the-art classroom and TV studio for DTV
  • New choir and band classrooms
  • Upgraded technology and internet infrastructure, including PA systems, phones, and wireless routers

While we have shared this information previously - along with summaries of itemized bond costs and vendor expenses - in district publications, emails and at a June 2025 Board of Education meeting, you can find this information on our website.

You may be wondering about the one thing not on the list that has not been completed - the Gates Elementary gym addition.

I am happy to report that we are currently refining its design and hope to have more news to share soon about when work will begin on this project. But first, the rest of the story …

If you remember, two days after voters approved the bond, the state of Michigan essentially “shut down” due to the COVID pandemic. In fact, our students did not return to school for the remainder of the school year.

It was a terrible time. Tragically, some of us lost loved ones. Our seniors didn’t get to experience traditions like attending prom or even a real graduation ceremony.

It was also a time when the costs of building materials and labor skyrocketed not only throughout the pandemic but in the years that followed. In addition, shortages in supplies and labor and some weather disruptions contributed to numerous delays, driving up costs even further. But one of the major issues that occurred was between our architects and their structural design firm.  The design issues caused continued and significant delays, a redesign of the project, and, yes, additional and unexpected expenses, such as labor, mobilization and material costs, which continued to increase as time went on.  All of these factors set the stage for multiple projects to potentially fall short of being completed.

Then there was the hailstorm of 2023. While it caused widespread damage, there was a silver lining in that we could free up some of the money projected to be used from the bond to replace roofs and some HVAC units with money from the insurance claims. We also got an unexpected boost from the Elementary and Secondary School Emergency Relief (ESSER) fund. Money from this federal program, created to help K-12 school districts and states address the profound impacts of the COVID-19 pandemic, was used to purchase the initial Chromebooks for every student so they could continue learning when it was necessary to be at home. We were also allowed to use grant funds to help with safety projects, including some of the costs associated with building the secure vestibules. These additional funding sources, along with the efforts of the design team, which included DCC Construction, Kingscott Architects and the District, to value engineer and modify designs, to maximize the remaining bond dollars. This allowed the District to complete several projects that had been committed to in the scope of the bond that more than likely would have been pushed out because of the unexpected delays and inflationary labor and material costs.

Still, despite completing nearly every project voters approved in 2020, one remains unfinished: the Gates Elementary gym addition. We remain fully committed to completing that project and are currently working through the steps necessary to move it forward. As a result of the unprecedented increases in labor and material costs following the COVID-19 pandemic, compounded by delays caused by the structural design issues that delayed the PAC project, we are currently working with our legal counsel and the project design team to reach a resolution that will allow the Gates gym to be completed while minimizing, and ideally eliminating, any additional cost to the District. As these discussions involve potential legal matters, I am limited in what I can share publicly at this time, but I look forward to providing additional information when I am able.

What I can say with certainty is that, contrary to statements made at the recent Davison Township Board meeting, the August 4 Non-Homestead Operations Millage renewal is not being brought before voters to fund the Gates Elementary gym project. As explained above, the Operations Millage provides annual funding for the District's day-to-day operations through the General Fund and, by law, cannot simply be repurposed to complete a bond construction project.

In closing, I truly want to thank the community for its continued support of the school district. Your investment in our 5,400+ students and 1,400 staff members is not taken lightly and goes a long way in helping to build a sense of community and belonging. If you ever have any questions regarding school funding or anything school-related, please don’t hesitate to reach out.

Matt Lobban
Superintendent

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