Section R. 388.19 - Annual computed millage waiver requestsRule 19.
(1) The department shall consider waiver requests to levy a recalculated computed millage that is less than the computed millage stated on the applicants most recent order qualifying bonds, but that is not lower than the computed millage rate noted on the applicants current loan agreement in effect at the time of the request. For school districts that have issued refunding bonds subsequent to entering into a loan agreement, there may be a higher computed millage rate reflected on the most recent order qualifying bonds than on the loan agreement.(2) Subject to subrule (3) of this rule, such waivers must be requested annually prior to June 1 each year and may be granted if all of the following statutory conditions are met: (a) The school board of the school district has applied to the state treasurer for permission to levy a recalculated computed millage as described in subrule (1) of this rule.(b) The application specifies the number of mills the school district requests permission to levy which shall be equal to the recalculated computed millage.(c) The waiver will be financially beneficial to this state, the school district, or both. It is presumed that the recalculated computed millage, despite being lower than the computed millage reflected on the applicants most recent order qualifying bonds, but not lower than the computed millage rate reflected on the applicants current loan agreement in effect at the time of the request, meets this condition.(d) The waiver will not reduce the millage levied by the school district to pay principal and interest on qualified bonds and/or qualified loans under the act to less than 7 mills.(e) The board of the school district, by resolution, will agree to comply with all conditions that the state treasurer has specified in the waiver. Any conditions are anticipated to be only those needed to address any unforeseeable circumstances unique to and presented by individual school districts. The departments approach to those circumstances will be uniform to the extent possible.(3) Once a waiver has been approved, for each subsequent consecutive year where the recalculated computed millage is lower than the computed millage stated on the most recent order qualifying bonds for the district, the district may continue to levy the lesser recalculated computed millage as long as it is sufficient to repay all outstanding loans by the final mandatory repayment date. Board acknowledgement of the waiver continuance will be obtained during the annual loan application process required by the act and will satisfy the annual waiver request requirement.(4) If confirmed taxable value amounts are not available prior to board certification, estimated taxable values may be used in the application. Revised financial schedules with confirmed taxable values must be submitted prior to final department approval. Complete and timely applications shall be processed not later than June 10.(5) Waiver request forms are available on the departments website and must be submitted along with current pro forma debt service projections not later than June 1 to the appropriate contact on the departments website.Mich. Admin. Code R. 388.19