Sinking Fund

What is a Sinking Fund?

A sinking fund is a voter-approved property tax that a school district can use for specific purposes—mainly building repairs, renovations, and site improvements.

Unlike a bond, a sinking fund does not create debt or require interest payments. Instead, it provides a steady, pay-as-you-go source of revenue for maintaining and improving school facilities.

What Can a Sinking Fund Be Used For?

State law strictly limits sinking fund expenditures. Common allowable uses include:

• Repairing or replacing roofs, boilers, windows, and doors
  
  
• Updating heating, ventilation, and air conditioning (HVAC) systems
  
  
• Improving safety and security systems
  
  
• Upgrading playgrounds, athletic facilities, and parking lots
  
  
• Technology infrastructure that is directly tied to facilities
  
  

What Can a Sinking Fund NOT Be Used For?

By law, sinking fund dollars cannot be used for:

• Teacher or staff salaries
  
  
• Classroom supplies
  
  
• Textbooks or instructional materials
  
  
• General operating expenses
  
  

Why is a Sinking Fund Important?

A sinking fund allows the district to maintain safe, functional, and efficient learning environments without diverting money from classroom instruction. It also helps avoid taking on long-term debt for routine building needs.

How is a Sinking Fund Collected?

When voters approve a sinking fund, the district collects a small property tax (expressed in “mills”) each year for a set number of years. Funds are collected annually and spent only on projects allowed by law.

 

 

 

 

 

The sinking fund monies are essential for ensuring that our schools have the necessary resources to provide a high-quality education to all students. This fund directly supports crucial infrastructure improvements, such as repairing and maintaining our facilities, upgrading technology, and enhancing safety measures, which ultimately contribute to a better learning environment. By maintaining this funding, our community can invest in the future of our children and ensure that they have access to modern educational tools and safe spaces to learn and grow.