Non-Homestead Operating Millage Replacement

Millage Information

On November 3, 2026, Election Day, Waterford School District will have a Non-Homestead Millage Replacement on the ballot. This millage will guarantee Waterford School District continues to receive funding from the state each year for general operating costs such as textbooks, staff, classroom materials and technology.

Millage Facts

The Waterford School District non-homestead millage is

• an existing levy on businesses and second homes in the district.
• NOT a new tax and has no impact on a homeowner’s property taxes.
• 13% of the operating funds for the district each year.
• required for the district to receive the full foundation allowance established by the state.
• funding to help pay operational costs to educate our students. 

Ballot Language

Waterford School District Operating Millage Proposal

WATERFORD SCHOOL DISTRICT OPERATING MILLAGE PROPOSAL

This proposal would replace, restore and extend the authority of the School District to levy the statutory limit of 18 mills on non-homestead property (principally industrial and commercial real property and residential rental property) which currently expires with the School District's 2033 tax levy and allow the School District to continue to levy the statutory limit of 18 mills on non-homestead property in the event of future Headlee rollbacks of up to 4 mills. The authorization will allow the School District to continue to receive revenues at the full per pupil foundation allowance permitted by the State. Personal residences are exempt from this levy.

Shall the limitation on the total amount of taxes which may be assessed against all property, except principal residences and other property exempted by law, situated within the Waterford School District, County of Oakland, State of Michigan, be increased to the amount of 22 mills with 18 mills being the maximum allowable levy ($18.00 on each $1,000 of taxable valuation), for a period of ten (10) years, 2026 to 2035 inclusive, with 17.6749 mills of the above 22 mills being a replacement of the authorized operating millage which will otherwise expire on December 31, 2033 and 0.3251 mills of the above 22 mills being a restoration of the millage lost as a result of the reduction required by the Michigan Constitution? This operating millage if approved and levied, would provide estimated revenues to the School District of $17,701,778 during the 2026 calendar year, to be used for general operating purposes.   

Non-Homestead Millage FAQs

1. What does "non-homestead" mean?

"Non-homestead" refers strictly to industrial and commercial real property, businesses, rental units, and second/vacation homes. It does NOT apply to a family's primary residential home (homestead).

2. Will my residential home property taxes change or increase if this passes?

No. Primary residential homeowners pay zero (0.0) non-homestead operating mills by law. This proposal applies exclusively to commercial properties, businesses, and rental properties to restore the state-mandated 18-mill baseline. Voting "Yes" will result in a $0 property tax increase on your primary residence.

3. Is this a new tax?

No. This millage has been an essential part of Waterford School District's local revenue structure since Michigan voters passed Proposal A in 1994. Local voters have periodically renewed this statutory baseline to ensure the district receives its full operating revenue.

4. What is a "Headlee Rollback" and why is this restoration on the ballot?

Under Michigan's Headlee Amendment formula, when commercial property values grow faster than inflation, the authorized non-homestead tax rate automatically rolls back. For Fiscal Year 2026–2027, Waterford’s authorized rate was rolled back from 18.0000 mills. This mill reduction permanently deprives our schools of over $501,400 every single year in state-calculated operating funds. This ballot proposal simply restores the rate to the full 18-mill baseline required by the state.

5. How are Michigan public school districts funded?

Michigan school districts receive operating funds on a per-pupil basis known as the Foundation Allowance. For Fiscal Year 2026–2027, the State of Michigan guarantees $10,300 per student. However, this per-pupil amount is calculated as a joint state and local responsibility:

• Local Share: The 18-mill Non-Homestead Millage.
• State Share: The Michigan School Aid Fund (funded via state sales tax, income tax, state education tax, and lottery net profits).

6. Why doesn't the State of Michigan cover the gap if the 18 mills aren't fully collected?

Under state law, the State of Michigan assumes that Waterford School District collects the full 18 mills on non-homestead properties. The State will NOT cover or replace lost revenue if local voter authorization drops below 18 mills. If the local 18 mills are not fully restored, the state simply deducts the difference from the district's funding allowance.

7. What happens if the millage restoration does not pass?

If the non-homestead rate remains rolled back, Waterford School District will continue to face an annual loss of over $501,400 in state-calculated operating revenue. Because the state will not replace these lost funds, the district would be forced to make reductions to general operations, which could impact staffing levels, instructional programs, support services, and classroom resources.

8. How does Waterford School District spend its operating budget?

Waterford School District manages a $125.75 Million General Fund budget for FY 2026–2027. The district prioritizes direct classroom investment and fiscal responsibility. Every dollar in our $125.75 million operating budget undergoes a rigorous annual audit by an independent CPA firm. 

• 56.2% ($70.68 Million) is dedicated directly to classroom teaching by funding certified teachers, textbooks, academic tech, special education and core curriculum across all grade levels)

• 15.4% (19.38 Million) provides funding for student supports  such as school counselors, nurses, speech pathologists, social  workers, media specialists and literacy coaches

• 14.8% ($18.67 Million) maintains 13+ school facilities, utilities and bus transportation.

• Nearly 80% ($98.9 Million) of General Fund spending pays directly for salaries and health benefits of staff serving Waterford children.

9. How do community members know these funds are being used responsibly?

The district operates under a strict annual budget and transparency cycle. Each year, an independent certified public accounting (CPA) firm conducts a rigorous on-site financial audit of all district accounts. Audit findings and annual budgets are formally presented to the Board of Education in open public meetings and are published online for full community transparency.

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