Sinking Fund Proposal on the May 5 Ballot
Holland voters will see a Sinking Fund Proposal on the May 5 ballot. In addition to supporting ongoing facility repairs and improvements, the updated language in the proposal would allow the district to use these funds for transportation and maintenance vehicles. Proposal Highlights:
- No increase in the current millage rate (1.25) over the next 10 years
- Estimated revenue is approximately $2,540,000
- Expanded language will allow funding for transportation and maintenance of vehicles
- Helps maintain and protect voter-approved bond investments
- Reduces strain on the general operating budget
A Sinking Fund for Michigan Schools is a voter-approved, local property tax levy that functions as a "pay-as-you-go" savings account allowing districts to pay cash for repairs and other unplanned projects - rather than borrowing through bonds.
- Restrictions: These funds cannot be used for operating expenses like teacher salaries, employee benefits, or utilities.
- Examples: Typical projects include HVAC repairs, technology purchases for student and staff, roofing repairs and floor installation, facility renovations and upgrades, and installing security cameras.
A Sinking Fund is separate from Operating Budgets and Bond Funds:
- Operating Budget: Is based on per-pupil funding from the state of Michigan (along with other revenues) and supports salaries of staff and with student programming. Without the funding of this Sinking Fund Proposal, projects normally supported through sinking fund expenditures would impact the district's ability to provide adequate funding for programming and/or to maintain staffing levels/salaries.
- Bond Funding: Bond funds allow the District to modernize, expand, and improve our facilities for specific projects with voter approval. A good example is the construction of the new Holland Heights Elementary School: Funding for construction of this new facility was approved by voters in 2020. Bond funds cannot be used on other projects, programs, or salaries.
Absentee ballots for the May 5 election are available. All other voting will take place in your regular polling location on election day. Please remember to vote.
Ballot Language:
Shall the limitation on the amount of taxes which may be assessed against all property in the School District of the City of Holland,Ottawa and Allegan Counties, Michigan, be increased by and the board of education be authorized to levy not to exceed 1.25 mills ($1.25on each $1,000 of taxable valuation) for a period of 10 years, 2027 to 2036, inclusive, to create a sinking fund for the purchase of realestate for sites for and the construction or repair of school buildings; for school security improvements; for the acquisition or upgradingof technology; for the acquisition of student transportation vehicles; for the acquisition of parts, supplies, and equipment used for themaintenance of student transportation vehicles; for the acquisition of eligible trucks and vans used to carry parts, equipment, andpersonnel for or in the maintenance of school buildings; for the acquisition of parts, supplies, and equipment used to maintain suchtrucks and vans; and all other purposes authorized by law; the estimate of the revenue the school district will collect if the millage isapproved and levied in 2027 is approximately $2,540,000?