On Tuesday, February 28, 2012 voters within the Mancelona Public School (MPS) district will have the opportunity to renew the building and site sinking fund millage which was approved for 2007-11 to levy 0.4 mills.  The millage has generated on average $120,000 a year in tax collections for the district.

Why is the sinking fund so important?

With these monies MPS has accomplished some significant building and ground repairs and upgrades which would have been paid out of general fund, therefore keeping funding from student programming.  Some of these upgrades have saved the district money by reducing electric and natural gas use

What has the sinking fund been used for?

            Over the past five years the sinking fund has assisted in numerous ways.  Listed are three noteworthy outcomes. 

First, the district recently completed a major lighting upgrade of all four gyms, exterior parking lots and walkways.  In the 2007/08 school year the district’s annual cost for electricity was just under $155,000.  The completion of such projects, combined with the staff and students’ awareness to save energy, the district successfully reduced their annual electric cost to $136,000 in 2010/11.

Secondly, a roofing replacement/upgrade project for a portion of the middle school 5^th & 6^th grade wing.  In addition to replacing the roof membrane and providing a better slope to roof drains, insulation was increased from R11 to R22.    

Finally, the boiler heating system controls in all three buildings received upgrades was the latest of natural gas savings measures implemented within the district.  In 2007/08 the district’s natural gas expenditures were $126,000.  For the 2010/11 school year the cost was reduced to just over $91,000.

            Utility costs to the district have gone down between the years 2007 and 2011 despite the annual increase in the utility rates!

What will it cost you as a taxpayer?

The cost of the proposal to an individual taxpayer varies with the taxable value of your home (0.4 mills will cost $0.40 per $1,000 of your taxable value).  Taxable value is generally half the market value, which is the expected selling price of your home.  A homeowner living in home with a market value of $75,000 will continue to pay $15 per year. 

(Example: $75,000 has a taxable value of $37,500 x .0004 = $15 per year)

Why is it important to renew the sinking fund? 

When Mancelona Public School Facility Maintenance Director, Mr. Ed McCarty, was asked about the Sinking Fund he stated, “Mancelona is no different than most school districts right now.  Our general fund is being stretched and going through some tough financial times.  The sinking fund allows us to keep our buildings safe and in top notch working order, without using general fund monies. 

Currently there are several issues needing repair or upgrades/improvements.  With the renewal of the sinking fund the district would be able to complete the roofing replacement projects at both the middle and elementary schools.  The roofs are well past their life expectancy and are starting to fail.  The estimate for repairing the elementary roof is equal to one year of sinking funds collected”.

What will happen if the sinking fund is not renewed?

            Superintendent Jeffery DiRosa responded to this question with, “without sinking funds, each time a project comes up, the district will have to consider the importance of the project and make the tough decision to cover the repair with funds from the general fund, and possibly impact student programming or not make the repair.  Building and site sinking fund monies have undoubtedly contributed to a more efficient and safer environment for students, staff and the community.  Sinking Fund dollars can only be used for repairs/upgrades of school property and buildings and cannot be used for employee costs, maintenance, maintenance supplies, furnishing and equipment.”