Sinking Fund Millage
WHAT IS A SINKING FUND MILLAGE?
- Tax on ALL properties for 10 years to fund infrastructure improvements and repairs to school district facilities
- The tax revenues that are generated are exclusively used for the purposes stated in the ballot language
- No money is borrowed, so there is no debt is issued or interest paid by taxpayers
WHY IS A SINKING FUND MILLAGE IMPORTANT?
Investing in the district’s infrastructure will help achieve the district’s goals of:
- Assuring that its facilities are safe, secure, up-to-date and attractive for the overall well-being of students, staff, and the community.
- Protecting the community’s investment in its schools, attracting students and maintaining property values.
WHAT WILL THE SINKING FUND COST?
This will result in a ZERO net increase over the school debt millage rate paid by Southfield taxpayers in 2017.
- The refinancing of the bonds in 2017 reduced the district’s borrowing costs, resulting in a .7 mill reduction in the school debt millage rate going forward.
- Replacing the 0.7 debt mill reduction with a 0.7 mill sinking fund provides funds to improve district infrastructure.
- 0.7 mill sinking fund would provide approximately $1,680,000 of annual resources for repair of school buildings, school security improvements, and technology.
- 0.7 mill equals 70 cents per $1,000 of taxable value. For example, the tax on a home with a $50,000 taxable value would be $35.