CAPITAL PROJECTS BOND PROPOSAL

Shall the Public Schools of the City of Ann Arbor, County of Washtenaw, Michigan, borrow the principal sum of not to exceed Two Hundred Five Million Four Hundred Sixty-Five Thousand Dollars ($205,465,000) and issue its general obligation unlimited tax bonds for the purpose of defraying the cost of making the following improvements:

• constructing, furnishing and equipping a new comprehensive high school building and improving and developing the site therefor, including outdoor athletic fields and facilities;
• constructing, furnishing and equipping additions to School District buildings, including additions for early childhood programs;
• remodeling, equipping, furnishing, reequipping and refurnishing existing School District buildings;
• acquiring and installing technology equipment in the School District;
• acquiring musical instruments and school buses; and
• improving and developing sites, including athletic facilities, fields and playgrounds in the School District?

The estimated millage to be levied in 2005 to service this issue of bonds is 1.88 mills ($1.88 per $1,000 of taxable value) and the estimated simple average annual millage rate required to retire the bonds of this issue is 1.58 mills ($1.58 per $1,000 of taxable value). The bonds may be issued in one or more series, payable in the case of each series in not to exceed 25 years from the date of issue of such series. The debt millage levy required to retire all bonds of the School District currently outstanding and proposed by this ballot proposal is currently estimated to be at or below 2.29 mills.

(Under state law, bond proceeds may not be used to pay teacher or administrator salaries, routine maintenance costs or other School District operating expenses.)

SINKING FUND MILLAGE PROPOSAL

Shall the Public Schools of the City of Ann Arbor, County of Washtenaw, Michigan, be authorized to levy 1.00 mill to create a sinking fund for the purpose of the construction or repair of school buildings and the improvement and development of sites, increasing the limitation on the amount of taxes which may be imposed on taxable property in the School District for a period of five (5) years, the years 2005 to 2009, inclusive? It is estimated that 1.00 mill ($1.00 per $1,000 of taxable valuation) would raise approximately $6,645,000 in the first year that it is levied.

(Under state law, sinking fund proceeds may not be used to pay teacher or administrator salaries.)