Bond-for-sinking fund swap proposed

MACKINAW CITY, Mich. - Mackinaw City Schools would temporarily suspend a sinking fund tax levy if voters pass a three-year-bond proposal this spring, according to the Cheboygan Daily Tribune.

The district school board will ask voters to approve a three-year, 0.72-mill levy, which would generate approximately $300,000, according to the Tribune. That money would be spent on computer equipment and two school buses, the Tribune reported.

During the three years in which the bond tax was levied, the district would not levy its existing 0.75-mill sinking fund tax, according to the Tribune. That tax generates money for building maintenance and repair, but under state law the funds can't be used for buses or technology. The sinking fund levy would resume after three years, Superintendent Jeff Curth told the Tribune.

Legislation that would allow a broader range of uses of sinking fund money has been introduced in the state Legislature, but Curth told the Tribune he does not expect it to pass. If it did, the district would withdraw the bond millage, Curth told the Tribune.

The Cheboygan Daily Tribune, "Mackinaw school bond will mean interim tax cut," Feb. 24, 2009

Michigan Education Report, "School property taxes could increase $5.5 billion over 10 years," Sept. 8, 2002