Warm, Wired, Safe, and Dry
Sinking Fund Initiative
Frequently Asked Questions
(Download FAQ)
What is a Sinking Fund?
A building and site sinking fund is a savings account into which a local school district can deposit voter approved local millage revenue in order to fund projects or major repairs as they arise rather than having to borrow through short-term notes or long-term bonds.
What is the difference between a sinking fund and a bond?
A sinking fund is a pay as you go collection of dollars (in our case we are asking for 2.5 mills or approximately $1.2 million per year) to address specific district repairs, construction (specifically the entrance vestibules at Pathfinder and Daisy Brooks schools), security issues, and technology upgrades. A bond is like a home mortgage which helps the district to do many projects at one time, or major projects such as building a building, replacing all of the buildings roofs or parking lots, etc.
Why is the district in need of a Sinking Fund?
The majority of buildings across the district were built in the 1960’s or earlier. (Fremont Middle School – 1965, Daisy Brook – 1964, Pine Street – 1954, and Quest – 1956.) Even Pathfinder is now more than 20 years old. These buildings are exceptionally well built, but we still must make continual upgrades, repairs, and fixes to maintain what we have. The demands of maintaining these buildings are stretching our limited resources. After a number of years of using the remaining monies from our 2012 sinking fund, we are now looking at having to use our general fund (classroom) dollars to make needed fixes and repairs.
When was the last time the district had a Sinking Fund?
A.The district had a Sinking Fund from 2002-2012. That Sinking Fund asked for 1.75 mills over a 10 year period, and averaged about $600,000 a year for the district to make repairs.
How will the passage of the Warm, Wired, Safe and Dry Sinking Fund millage benefit students and the community?
If approved, the money raised through the Warm, Wired, Safe and Dry Sinking Fund millage will:
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Protect the community’s investment in the school district’s buildings and facilities
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Continue to provide our students a safe, secure and healthy environment
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Reduce pressure on the general fund so more of the school district’s limited educational operating funds are available to support student learning
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Maintain learning facilities that represent one part of the district’s effort to keep and attract residents
How many school districts in Michigan have Sinking Fund millages?
As of the 2015-16 school year, 173 school districts collect dollars through Building and Site Sinking Funds.
How does a sinking fund preserve general fund dollars?
The sinking fund dollars provide an avenue for increasing security, repair or construction of buildings, and purchasing technology without affecting the general operation of the district. In the event that a roof or septic field fails, having these dollars to make repairs does not put a burden on the general fund.
Does the district go into debt and pay interest on sinking fund dollars?
No, this process involves collecting the dollars on a yearly basis and is a pay as you go process.
Will the tax rate increase if approved by the voters?
Yes. The district’s debt fund levy is currently set at 7 mills. If the sinking fund passes the current levy will be increased to 9.5 mills. This equates to $125 per year on a home with a market value of $100,000, or approximately $10.40 cents per month.
Can sinking fund dollars be used to pay salaries and benefits?
No, expenses will be audited annually for compliance with Michigan Department of Treasury guidelines.
What technology can be purchased with sinking fund dollars?
Infrastructure, computers, smart boards, chrome books, Ipads, desktops, printers, projection units, etc. when used for instruction. Technology is a key component of 21st century learning.
What are the restrictions on sinking funds?
Sinking fund dollars cannot be used to fund ongoing operating expenses, salaries, benefits, textbooks and supplies, or preventative maintenance.
What is a mill?
A mill represents $1 for every $1000 of taxable value of your property. The taxable value of your property is the same, or lower than, the state equalized value (SEV) and is approximately 50% or more lower than the market value of your property.
What is the approximate impact of the Warm, Wired, Safe and Dry Sinking Fund millage on property taxes?
Home Market Value |
Home Taxable Value |
Yearly Increase |
Monthly Increase |
---|---|---|---|
$50,000 |
$37,500 |
$62.50 |
$5.20 |
$100,000 |
$50,000 |
$125.00 |
$10.41 |
$150,000 |
$75,000 |
$187.50 |
$15.58 |
$200,000 |
$100,000 |
$250.00 |
$20.83 |
$250,000 |
$125,000 |
$312.50 |
$26.00 |
Why is there a need to upgrade boilers, roofs, and mechanical & electrical equipment?
The middle school boiler system is the original equipment from the 1960’s, and the boilers at Daisy Brook and Quest have reached their expected lifespans. All school building roofs were replaced in the past 20 years, but the warranties on many of these have expired. Replacements of roofs would be staggered over the next 10 years to provide for a more efficient replacement cycle. Mechanical and electrical equipment is original in many of our buildings and is in need of replacement. As district facilities were assessed in preparation for this proposal, most of the replacements and upgrades were placed in our sinking fund plan. See below.
What are the potential Warm, Wired, Safe and Dry projects for the district?
Here is a list of items that maintenance department and Board of Education have worked on based on the results of a Facilities Assessment we had completed by TowerPinkster and Owen, Ames, Kimball companies out of Grand Rapids, Michigan.
Pathfinder |
Security Vestibule |
$138,000 |
|
Playground Equipment |
$580,000 |
|
Roof Replacement |
$516,000 |
|
Mechanical Equipment |
$700,000 |
|
Kalwall Pyramids (Ceilings) |
$104,400 |
|
Flooring, Exterior Doors |
$400,000 |
Daisy Brook |
Secure Entrance |
$372,500 |
|
Playground Upgrades |
$372,600 |
|
Mechanical Controls |
$595,000 |
|
Boilers & Mechanical Ventilators |
$386,400 |
|
Bathrooms |
$175,000 |
|
Exterior/Interior Finishes |
$600,000 |
FMS |
Roof |
$426,000 |
|
Mechanical Upgrades |
$1,400,000 |
|
Locker Rooms |
$200,000 |
|
Flooring, Ceiling, Lights |
$700,000 |
Quest |
Roof |
$150,000 |
|
Exterior/Interior Finishes |
$300,000 |
Pine Street |
Secure Entrance |
$135,000 |
|
Roof |
$318,800 |
PS Athletics Field |
Renovated Track |
$600,000 |
|
Renovate Locker Room Facility |
$695,000 |
|
2 Field Light Poles |
$215,300 |
Technology |
Desktop Computers |
$2,000,000 |
|
Smart Boards |
|
|
Ipads |
|
|
Chromebooks |
|
|
Infrastructure/Network |
|
|
Wireless Communications |
|
Total: |
|
$12,090,000 |