School District Proposes 10-Year Sinking Fund to Cover Repairs, Now Including Buses

HOLLAND, MI - Holland Public Schools will ask voters on Tuesday, May 5, whether to renew a sinking fund that has expired, according to the district. The proposal would extend the fund through 2036 and expand its use to include transportation needs.

What Is a Sinking Fund?

A sinking fund is a property tax levy that functions as a pay-as-you-go savings account. It allows school districts to pay cash for expenses like building repairs rather than borrowing through bonds, according to the district. The funds cannot be used for salaries or operating expenses like utilities.

Typical projects include:

• HVAC repairs
• Roofing and floor installation
• Facility renovations
• Technology purchases for students and staff
• Security camera installations

The Proposal Details

Holland voters last renewed the sinking fund in 2017. The new proposal covers a 10-year period from 2027 to 2036. School leaders say there would be no increase in the current millage rate of 1.25 mills.

If approved and levied in 2027, the estimated revenue the district would collect is approximately $2.5 million, according to the district.

The updated ballot language would allow the district to use fund dollars for buses and maintenance of vehicles in addition to traditional facility repairs, according to the district.

Superintendent Nick Cassidy Supports the Proposal

"This proposal reflects our commitment to responsible stewardship and ensuring our schools remain safe, functional, and well-maintained for years to come," Holland Superintendent Nick Cassidy said in his quarterly newsletter.

Without sinking fund revenue, projects normally covered by those expenditures would impact the district's ability to provide adequate funding for programming or maintain staffing levels and salaries, according to the district.

Why This Matters

The district posted on Facebook that "The Sinking Fund helps maintain and protect investments while reducing strain on the General Operating Budget- with NO increase over current rate."

Bond funds from 2020 construction projects, including the new Holland Heights Elementary School, cannot be used on other projects. Without the sinking fund, capital expenses would draw from other resources.

Election Information

Absentee ballots for the May 5 election are available, according to the district. All other voting will take place in regular polling locations on election day.