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PUBLISHED: Sunday, March 23, 2008
Imlay City school board opts to shelve sinking fund proposal



After listening to focus groups and reviewing survey results, it was revealed district residents are not in favor of levying a sinking fund millage of 2 mills to repair district buildings.

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Nearly half of the parents, according to the survey, said they would support a sinking fund of less than 2 mills.

At Monday's meeting of the Board of Education, discussion ensued on a sinking fund, but no action was taken, said Amy Swantek, Imlay City Community Schools director of business services.

"The effects of our poor economy have placed a significant strain and hardship on many families in our community," said Superintendent Gary Richards in board notes. "Although many of them have expressed a sincere desire to help, they lack adequate financial resources to do so."

Richards said if the board decides to put the sinking fund on the ballot, he recommended that it only be to repair the middle school roof. A .5-mill levy would generate approximately $600,000 over the course of three years. Estimated cost of the roof replacement is pegged at $720,000.

The district has estimated it has $3.6 million in infrastructure improvements to tackle over the next five years.

Swantek said the district has $300,000 budgeted for capital improvements this year — not enough to cover the cost of the middle school roof replacement.

At Monday's meeting, the board sent the matter to the board's building and grounds committee for further review, Swantek said. They will prioritize the building needs of the district. They are then expected to take it to the finance committee.

Swantek said there's a possibility that if the district puts the sinking fund before voters, building repairs could also be financed partially through capital improvement funding.

A sinking fund is a tax that school districts can only use on building improvements. It cannot be used for salaries or books.

Jennifer Decker can be reached at (810) 664-0811, Ext. 8125 or jennifer.decker@lapeergroup.com.





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