Voters in the Hopkins Public Sch
ool District narrowly approved, 312 to 291, a sinking fund levy of up to 1.6 mills for five years to take care of improvement projects.
Majorities in Hopkins Township, 111 to 96, and Monterey Township, 64 to 37, helped carry the day for the positive vote. Voters in Dorr Township rejected the proposal 86 to 74 and Salem Township voters turned it down by a tally of 72 to 63.
The sinking fund will apply to the years 2016 through the end of 2020.
Some of the improvement projects proposed by school officialls include entryway upgrades, asphalt repair and replacement, roof repair and replacement, carpet replacement, athletic field refurbishment, addition of a science lab and the addition of a STEM classroom.
Officials asserted that a sinking fund could serve 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.
A handout maintained that, “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. The levy 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.
