L’ANSE – L’Anse Area Schools hopes voters will approve up to 1 mill for building and site needs through a sinking fund millage that will be on the November ballot.

“A sinking fund millage is a limited property tax to fund major repairs and renovations to school buildings,” said Superintendent Susan Tollefson in a recent press release. “The tax is levied each year and the revenue generated is used to address the most urgent building improvements identified by a school district. Using a sinking fund, the school district accesses the money on hand to pay for projects as they are completed. Since the school district has not borrowed money for the projects, no debt is incurred and it does not pay interest on the money used. Hundreds of school districts in Michigan currently have a sinking fund millage.”

The school is seeking the sinking fund millage of up to 1 mill for 12 years. The district refunded its bonds from the 2000 school construction and cut the interest rate from 4 percent to 2 percent in February. Due to this refunding, the overall tax levy will not increase above 2015 amount.

“This savings presents a unique opportunity to add the sinking fund millage and still continue to levy the same amount as was levied prior to the bond refunding,” Tollefson said. “It is similar to refinancing your home at a lower interest rate and putting aside the savings due to your lower monthly payment into a ‘building and site’ account for renovations and repairs. The district was able to refund their bonds at a lower interest rate through the competitive bid process due to a good credit rating.

“The good credit rating is due to a proven history of fiscal responsibility (and) stability within the district, sustainability of programs and a board policy of maintaining a fund balance of greater than 10 percent,” she added. “Due to the efforts of the district in these areas, the district will have a savings in interest payments that can be now be allocated to building and site needs, if the sinking fund millage is approved by the voters.

The sinking fund proposal would be used for facility upgrades, including replacement of the old high school roof, upgrades to the elementary school bathrooms, heating and ventilation system upgrades, energy conservation improvements in all buildings, some window replacements, carpeting and tile replacement, needed safety compliance improvements to the old gym balcony, restrooms at the sports complex and parking lot improvements. The projects would be prioritized and addressed as funds become available over the next 12 years.

“One mill throughout the school district would generate approximately $144,000 per year, depending on property values,” Tollefson said. “For a home with market value of $100,000, which would typically have a taxable value of $50,000, one mill equates to $50 of their property tax bill.

For more information, visit the district’s website at www.lanseschools.org for information on the proposal as well as details about community meetings and presentations.

“We are striving to continue to be good stewards of taxpayer resources and to be proactive with a detailed long term facility management plan that addresses future building needs,” Tollefson concluded.