On Tuesday, May 7, 2013, the Fennville Board of Education will ask voters to approve a ½-mill sinking fund request for the renovation and repair of district facilities, along with site and safety improvements.
What will the proposed sinking fund pay for?
The proposed sinking fund will generate approximately $170,000 per year to be used for major projects. Among the first items to be addressed are:
- Safety and security upgrades including improvements to building security, site lighting, and sidewalk replacement
- Expansion of the parking lot at the lower level of the elementary
- Renovation/replacement of carpeting, lighting, lockers, and mechanicalsat the nearly 40-year old high school
The sinking fund will not be used for the purchase of land or other property. Beyond currently identified needs, the sinking fund would also be available for unexpected facility needs as they occur rather than paying for these out of the General Fund. For example, shortly after the bond issue work was completed, the roof on the high school failed, requiring an expenditure of $597,000. The only option was to borrow this money and repay it with interest over time from the General Fund. The interest cost for that loan (even after refinancing) will total more than $109,000 over the life of the loan. If it had been in existence at the time of the roof ’s failure, a sinking fund could have been used instead to pay for some or all of the repairs.
By law, a sinking fund cannot be used for salaries, supplies, or equipment.
Please join us for an informational meeting on the upcoming Sinking Fund election! This meeting will be held on Thursday, April 25 at 7:00 p.m. in the High School Auditorium. Hope to see you there!