Mich. Admin. Code R. 388.2

Current through Vol. 24-19, November 1, 2024

Section R. 388.2 - Preliminary qualification; application

Rule 2.

(1) A completed preliminary qualification application shall include a submission to the department that complies with section 5 of the act, MCL 388.1925, any other applicable law, and any other guidance published by the department including, but not limited to, global instructions, policies, procedures, guidelines, or rules. The application shall include the following:

(a) The proposed ballot language to be submitted to the electors shall include all language required by the following statutes:

(i) Section 1361 of the revised school code, 1976 PA 451, MCL 380.1361

(ii) Section 24f of the general property tax act, 1893 PA 206, MCL 211.24f

(iii) Section 8 of the act, MCL 388.1928.

(iv) Any other applicable law.

(b) A description of the project or projects to be financed including all of the following:

(i) A cost analysis providing summary totals that can be matched to budget estimates as reported by the school district.

(ii) For new construction, all of the following shall be included:

(A) The estimated number of rooms.

(B) The types of rooms expected to be constructed.

(C) The estimated square footage of the project or projects.

(D) The estimated cost per square foot.

(iii) For remodeling and site work, all of the following shall be included:

(A) The planned use of the space.

(B) The type of work expected to be performed.

(C) The estimated total cost of the work to be performed.

(iv) For site acquisitions, the total cost of acquisition shall be included, or if such information is not available, the estimated total cost of acquisition.

(v) For technology, furnishings, and equipment, school districts shall provide detail regarding the types of technology, furnishings, and equipment to be purchased.

(c) A pro forma debt service projection, which shall demonstrate both of the following:

(i) That the projected computed millage will be sufficient to repay principal and interest on all of the school district's existing and proposed new qualified bonds plus principal and interest on all existing and anticipated qualified loans related to those bonds not later than the final mandatory repayment date.

(ii) That the school district's projected average growth in taxable value is based on the assumptions required by the act.

(d) The utilization rate for each project included in the preliminary qualification application, which meets the following specifications:

(i) The utilization rate shall be calculated by dividing the projected 5-year enrollment by the standard pupil capacity factor provided by the department.

(ii) The 5-year enrollment projection used in this calculation shall be obtained from an enrollment projection service provider approved by the department.

(e) Evidence that the cost per square foot of the project or projects will be reasonable in light of economic conditions applicable to the geographic area in which the school district is located.

(f) An amortization schedule in accordance with sections 5(2)(k) and 7(1)(d) of the act, MCL 388.1925 and 388.1927.

(2) The department shall determine the reasonableness of cost per square foot by comparing the cost included in the preliminary qualification application to the cost per square foot parameter announced annually by the department. The cost per square foot parameter announced annually by the department shall be calculated from data derived from reputable independent sources, including but not limited to, R.S. Means or such similar entity that provides reliable objective information.

Mich. Admin. Code R. 388.2

2007 AACS; 2014 AACS; 2022 MR 3, Eff. 2/15/2022