Former Houghton City Manager needs more answers from the Houghton Portage Township School District regarding its proposed bond extension

In November the Houghton Portage Township Schools will ask the district’s residents to extend the bond millage beyond 2029.

The Proposed bond will build additional space for the elementary school and upgrade technology. The millage extension of 9.64 mills is expected to raise 23 million dollars from 2029 to 2031. Currently, the district’s existing debt stands at around 22 million dollars. Some residents however are concerned that the proposal will add additional debt bringing the HPTS school bond debt to 46 million dollars.

I had to get some additional information from the bond council so, I could figure out how much I was going to own my house. And after I got that information, it took me about two hours to figure out exactly what it was going to cost, says Robert Scott MacInnes, Resident of Houghton and former Houghton City Manager. And I found out that it was like a 60% increase from the existing bond issue for the new bond issue over the term of the bond. So I’ve got 50 years experience in local government. And I’ve dealt a lot with bond issues and if it takes me this long to figure it out, the average person is going to have a difficult time doing it.

MacInnes expressed frustration with how the school district has shared information with the community. Especially with information that shares the cost of the millage extension for a single household.

The school district offers several informational links on the district website; including a copy of the bond information flyer, an online version of the public forum presentation, a chart tracking the district’s existing debt and what the proposal could add, a financial scope of the district’s debt and project that was approved by the department of treasury in January 2024, information about the ballot language, additional informational flyers, and links to informational media.

None shows the cost breakdown for an individual household if the proposed millage extension passes. The district has said on several occasions that the millage extension will not cost any more than what taxpayers currently pay. As the millage asks to extend the 9.64 mills residents already pay, to 2031. The district would expect the millage rate to drop off after 2028 if the extension does not receive enough votes, for 4.61 mills.

If the bond does not pass the district’s existing debt would be paid off in 2041. If passed however the extended bond could create up to 46 million dollars of total debt for the district that would not be paid off until 2055.

For the taxpayers of Portage Township, 27% of their total taxes go toward this bond issue. And 21% in Houghton. And Portage Township residents are paying 33% more in their township taxes than Chassell Township is paying. Because Chassell Township paid their bonds off, which is kind of unusual, I think, in the first place. But, you know, Houghton’s never come close to doing that. – Robert Scott MacInnes, Resident of Houghton

HPTS school district has seen an additional 101 students added to the district over the past decade. While a majority of students do live within the district Houghton Portage does have close to 35 percent of students coming from school of choice, according to the district’s website. State funding that counts student population can only go toward operational expenses, and projects to expand a district.

We know that the K-12 numbers are declining nationwide, in Michigan, UP-wide, and within the district. I mean, they show that their numbers are decreasing. And so, I don’t have any confidence that they’re going to be able to continue this growth. And if they don’t, these kids that are coming from other school districts don’t pay any of the bond issues for Houghton, adds MacInnes. And they can choose to go wherever they want. So if they all of a sudden turnaround and say 100 or 200 kids don’t show up, what’s going to happen? And the school board hasn’t answered that question yet.

MacInnes says he hopes to have a website available within the next week to share more information with the public. We hope to add a link to that website to this story when it becomes available. Those interested in learning more about the Houghton Portage Township School District bond millage extension proposal can find more information on the district’s website here.

Those interested in checking out an information flyer Scott MacInnes has shared with the public can find more information here and here.