Sinking Fund Proposal
What is the difference between a bond and a Sinking Fund millage?
A bond is a form of borrowing, which means taxpayers must pay back the borrowed money over time with interest. A Sinking Fund is levied, not borrowed, which means the District does NOT take on additional debt or interest expense.
SINKING FUND SPENDING
Do you want to know how much you are currently paying every year for the sinking fund?
Do you want to know how much you will pay if the current proposal passes?
Visit our SINKING FUND CALCULATOR!
Without sinking fund dollars, facility repairs and maintenance costs would need to be taken from the general fund which affects classrooms directly
"Sinking Funds" are dollars secured to maintain district facilities in both Albion and Marshall. These funds are only collected with taxpayer approval and they help keep state funds in the classroom. This year's ballot proposal language includes improvements to security as well as technology. Albion & Marshall vote every eight years to renew this fund which has been successfully approved for over 20 years. Funds collected are based on millage; one mil is 1/1000th of a dollar.
Voters will decide on May 2nd on a proposal for Marshall Public Schools. The proposal asks for 1.0 mills which equates to approximately $0.56 more annually for a $100,000 primary home (with a taxable value of $50k).
A Sinking Fund is considered a "pay-as-you-go" method for funding building projects, such as parking lots, roofs, flooring, and windows. This does not involve borrowing, so there are no loans to pay off later.
The current Sinking Funds can ONLY be used for remodeling and repair or replacement of buildings and sites. It is state law, and the state strictly monitors how Sinking Fund money is used. That means a Sinking Fund cannot be used for routine operating expenses such as salaries or benefits, textbooks, supplies, or preventative maintenance.
How are we accountable for sinking funds? From the Revised School Code: "A school district that levies a sinking fund tax under this section shall have an independent audit of its sinking fund conducted annually, including a review of the uses of the sinking fund, and shall submit the audit report to the department of treasury. If the department of treasury determines from the audit report that the sinking fund has been used for a purpose other than those authorized for the sinking fund under this section, the school district shall repay the misused funds to the sinking fund from the school district's operating funds and shall not levy a sinking fund tax under this section after the date the department of treasury makes that determination."
Using the Sinking Fund to pay for building needs means the district won't have to tap its general fund as much for repairs. This means more money is available directly to benefit students and classrooms.
The current Sinking Fund millage rate is .9888 mil which is $49.44 annually for a $100,000 primary home ($50k taxable value). The new rate would raise that amount by fifty-six cents to an even $50.00 annually.
SINKING FUND SPENDING
Join us for a discussion regarding the Sinking Fund proposal that will be on the ballot May 2, 2023. MPS Superintendent Rebecca Jones talks about thoughts that were shared through a Sinking Fund Thought Exchange.