MEMPHIS COMMUNITY SCHOOLS

BONDING PROPOSAL

Shall the Memphis Community Schools, St. Clair and Macomb Counties, Michigan, borrow the sum of not to exceed Nine Hundred Fifty Thousand Dollars (950,000) and issue its general obligation unlimited tax bonds therefore, for the purpose of:

remodeling, equipping and re-equipping and furnishing and refurnishing school district buildings; acquiring and installing educational technology in school district buildings; purchasing school buses; constructing and equipping a bulk salt shelter; and developing and improving sites?

The following is for informational purposes only:

The estimated millage that will be levied for the proposed bonds in 2012, under current law, is .62 mill ($0.62 on each $1,000 of taxable valuation). The maximum number of years the bonds may be outstanding, exclusive of any refunding, is eight (8) years. The estimated simple average annual millage anticipated to be required to retire this bond debt is .41 mill ($0.41 on each $1,000 of taxable valuation).

If the school district borrows from the State to pay debt service on the bonds, the school district may be required to continue to levy mills beyond the term of the bonds to repay the State.

(Pursuant to State law, expenditure of bond proceeds must be audited, and the proceeds cannot be used for repair or maintenance costs, teacher, administrator or employee salaries, or other operating expenses.)