Below are some common questions and answers related to the sinking fund levy proposal:

What is a sinking fund?

A sinking fund is a “pay as you go” system which is generated by local voters.  It provides school districts with funds to pay cash for repairs and improvements as needed. A sinking fund saves money by addressing infrastructure maintenance without incurring interest on loans or bonds. The funds are utilized to protect the taxpayer investment by paying for school repairs and maintenance projects as they are completed.

What does the State of Michigan pay for?

The State of Michigan provides schools with funds to support educational instruction. Current funding does not provide funds to maintain, repair or improve buildings.  Webberville Schools, like many Michigan schools, utilizes a sinking fund levy to fund these important repairs and improvements.

What are the benefits of a Sinking Fund?

Keeps more general fund dollars in the classroom, instead of the boiler room
The WCS Sinking Fund would provide the district with dedicated funding towards our facilities, preserving general fund dollars to provide educational opportunities for students and staff.

Provides additional funding for building maintenance and site improvements
WCS has identified several necessary improvements that the sinking fund would address. It funds the repair and preservation of existing facilities.  

Provides additional funding for safety/security improvements
The safety of our students is always a top priority. The WCS Sinking Fund will provide our district with funds to make improvements to our current safety and security infrastructure while also addressing aging technology systems as needed.

Is a sinking fund levy similar to a bond?

Sinking funds and bonds are both approved and generated by taxpayers, but they are very different. A bond is a form of borrowing and taxpayers must pay back the borrowed funds over a period of years with interest.  Sinking funds are levied, but are not borrowed. This means the funds generated do not include borrowing additional debt or incurring interest. Sinking fund revenue is also limited in its uses which are regulated by law. 

Why does Webberville Community Schools need funding for technology? 

Providing our district with up-to-date technology is a continuous process. While we have made replacements/repairs to our technology and devices over the years, much of our equipment is nearing the end of its useful life. The sinking fund would provide WCS with a dedicated fund to upgrade and replace technology equipment over the next several years as needed. The type of technology that the sinking fund would likely address is big picture technology including operational systems like security cameras, servers, wiring, connections, and devices.

What can sinking fund revenue NOT be used for?

• Employee Salaries 
• Employee Benefits
• Books
• Consumable Supplies
• Routine Maintenance like mowing, cleaning, and snow removal

Does Webberville Community Schools have a sinking fund currently?

Yes. The current sinking fund generates approximately $148,000 per year. Of this revenue, the district must use about 78% annually to make existing bond payments that were approved in 2005-06. This leaves only $33,000 available each year for the district’s maintenance and repair needs approximately.

What happens if the sinking fund levy is NOT approved in May?

The current sinking fund will expire in 2024. Without levy approval, the district cannot make the identified repairs and improvements. Also, there will be a significant financial impact on educational budgets, as the district must make the energy bond payments with general fund dollars.

If the proposed sinking fund levy is approved, what happens to the previous levy?

If approved, the new levy would replace the previous levy and would begin in 2023.  It is not added to the previous levy. The increase is determined by the difference between the previous and proposed levy.

Are there plans to construct new buildings and/or purchase new real estate?

There is language required by law to be on the ballot for a sinking fund proposal.  Webberville Schools does NOT have plans to purchase real estate or construct school buildings.  This levy is being proposed to support infrastructure repair and improvements to the district's existing school buildings and grounds. School building construction and real estate purchase are not part of the proposed projects.

How much revenue would the sinking fund generate for WCS?

The proposed sinking fund would generate approximately $435,000 annually for the district over the next 10 years.

How much will the proposal cost the average homeowner?

Costs are determined based on taxable value, not market or sales value. A home with a taxable value of $70,000 (Leroy Township average) would see an estimated increase of $10.95/month.

Where do I go to vote on May 2?

Complete information on the voting process, including clerk office and polling locations, registering to vote and absentee ballots can be found here at https://mvic.sos.state.mi.us/