Sinking Fund Election 2024
Dear Hastings Community,
On November 5th, voters will have the opportunity to consider a ballot measure to renew our "sinking fund" for an additional 10 years. This fund provides an interest-free, pay-as-you-go method for funding repairs and improvements to school facilities, and renewing it would not increase your current tax rate. Your existing tax rate already supports both the bond and the sinking fund, and this renewal would simply extend that rate for another decade. We rely on these sinking funds each year to make essential repairs and improvements, allowing us to minimize expenditures from our general funds.
Understanding Bonds vs. Sinking Funds
- Bonds: Bonds function like a loan. The district issues bonds to borrow a large sum of money for significant projects, such as constructing new buildings or major upgrades. We then commit to repaying this amount, plus interest, over time. Bonds address immediate, large-scale needs.
- Sinking Funds: In contrast, a sinking fund is like a dedicated savings account. The district regularly allocates the sinking fund millage to this fund, which grows over time. This money is used for planned improvements or repairs of existing facilities, helping us manage costs without borrowing.
Sustaining Excellence Without Raising Tax Rates
A sinking fund renewal would not mean an increase in your tax rate. A renewal would continue our current funding model, which would allow us to invest in our schools without additional financial burden on our community. This demonstrates our commitment to enhancing educational quality while being mindful of financial concerns.
The sinking fund has been vital for making essential improvements and repairing our facilities over the last ten years. Renewal of the sinking fund would ensure continued support for these efforts without impacting the general fund, which primarily supports student and classroom needs.
Prioritizing Improvements and Repair
A key benefit of our sinking fund is its focus on improving and repairing our existing school buildings. Our schools are not just buildings; they are environments where our children learn and grow. Keeping these facilities in top shape is crucial for providing safe and functional learning spaces.
The sinking fund has allowed us to address improvement and repair issues before they become costly problems. This proactive approach helps keep our schools in excellent condition and avoid more expensive repairs, directly benefiting students by ensuring their learning environments remain safe and effective.
Enhancing Learning Environments
Well-maintained and updated facilities contribute to a more comfortable and effective educational experience. Modern classrooms and functional spaces help create an environment where students can excel. Good facilities also help our educators by providing the tools they need to teach effectively. When schools are in good shape, it fosters a positive atmosphere for both students and staff, contributing to better educational outcomes and supporting our mission to provide high-quality education.
Sinking fund dollars are an important component of our funding formula. Without this annual revenue, we would be pulling additional dollars from the general fund to make necessary repairs and improvements to our schools. It's important to note that sinking funds are strictly regulated; they cannot be used for salaries or new programs but can only be directed toward necessary repairs and improvements to our school buildings. If you have any questions about the sinking fund proposal, please feel free to reach out to me at 269-948-4400. I’d be happy to provide further details. Thank you for being an engaged and informed member of our community. Remember to vote on November 5th!
Sincerely,
