Hopkins Public Schools will ask vote
rs in the district Tuesday, May 3, to approve a sinking fund for 1.6 mills over five years to pay for facility improvement projects.
Some of the projects would include entryway upgrades, asphalt repair and replacement, rood repair and replacement, carpet replacement, athletic field refurbishment, addition of a science lab and the addition of a STEM classroom.
An informational handout from the district defines a sinking fund as a sort of savings account that a school system can use to pay for facility improvement projects without having to borrow through short-term notes or long-term bonds.
The handout asserts, “Sinking funds provide districts with a cost-effective alternative to borrowing or bonding for some expenditures because they require none of the associated interest costs or legal fees. A school district that levies a sinking fund tax shall have an independent audit of its sinking fund conducted annually.”
According to state law, school districts may levy up to five mills for a maximum of 20 years, but voters’ approval is necessary.
School officials say 1.6 mills would generate about $400,000 annually for the district. Owner of a house valued at $100,000 would pay an additional $80 in property taxes per year.
If approved, the millage levy would last from 2016 through 2020, and would raise about $401,231 in the first year.
The sinking fund also could be used for unexpected facility needs as they occur, rather than paying for them out of the general fund.
Residents Tuesday will vote at their township hall. Watson Township residents will be voting at the Hopkins Township precinct. Absentee ballots are also available.
