Can’t we expand the sinking fund?
Sinking funds are voter-approved millages that generate revenue over time. While districts can legally use sinking funds for construction, repair, buses, and technology, sinking funds are not intended for large projects because revenue is not generated in a timely manner and does not generate the amount of revenue needed.
The sinking fund in Rockford is currently 0.4662 mills and generates just over one million dollars a year.
Voters would need to approve an increase in the sinking fund millage in order to expand the sinking fund. Expanding the sinking fund to the permissible 3 mills would generate approximately $6-9 million dollars a year.
While sinking funds can be part of the construction and maintenance of school district buildings, they do not generate the revenue needed for big projects. For example, our elementary air conditioning project is estimated to cost between $35-$40 million dollars. If the district were to ask and voters were to approve a 3 mill sinking fund, at an estimated $6-$9 million dollars generated per year, it would take 4-5 years to generate the funds needed to complete the air conditioning project. No revenue would be available for other needed projects or repairs since all revenue would be saved for the large project.
Since the sinking fund was approved by voters in 2019, the sinking fund has paid for the following projects:
- 2021 East Rockford Middle paving
- 2021 East Rockford Middle flooring
- 2024 East Rockford Middle elevator repair
- 2024 Valley View paving
- 2024 Roguewood asbestos abatement
