The Chelsea Standard
A Heritage Newspaper
Weekly Publication
District seeks millage renewal
November ballot to include 0.9283-mill request for 10 years
By Sheila Pursglove, Special Writer
PUBLISHED: October 12, 2006
While much has been said about the candidates and proposals that will appear on the Nov. 7 ballot, Chelsea School District voters may be in for a surprise.
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They will find a request for a renewal of the district's existing sinking fund millage, which expires this year.
A thumbs up from voters will extend the current sinking fund — a school revenue account designated for building renovation and repair — for another decade.
The district anticipates additional significant needs in all of its buildings for the next 10 years, said Chelsea Superintendent David Killips.
In the past, revenue from the fund has paid for roof replacements, fencing and sidewalks, accessibility renovations, fire-safety upgrades, parking lot resurfacing and restroom renovations.
"We have a responsibility to maintain our facilities," Killips said. "The ongoing maintenance is an expensive endeavor as our school buildings are used by the students and members of the public for up to 16 hours per day.
"The renewal of the sinking fund not only allows us to maintain our wonderful facilities, but it allows us to continue to use our general fund for classroom expenditures. This helps us maintain a quality educational program for our children."
While South Meadows Elementary School marks its 54th year this year, by the life of the district's proposed sinking fund renewal, it will be at 64, North Creek Elementary at 62, the majority of the Washington Street Educational Center at 58 and Beach Middle School will celebrate its golden anniversary.
The sinking fund renewal proposal requests authorization to levy up to 0.9283 mill — $0.9283 on each $1,000 of taxable valuation — for 10 years, for the construction or repair of school buildings, acquisition of sites and all other purposes authorized by law.
So what does all this mean to the average homeowner?
"Financially, for a homeowner in Chelsea that has a home worth $200,000 — and a taxable value of $100,000 — the cost per year would be $92.83, which amounts to $1.79 per week," said Teresa Zigman, the school district's executive director of business and operations.
"This is what our residents are currently paying to support the sinking fund, which is presently in place as this tax rate is a renewal, not an increase."
District residents have had a similar millage in one form or another for more than 30 years, Killips said.
In 2007, renewal will generate approximately $787,428. Without a sinking fund, general fund dollars must be used for building repair and renovation needs, negatively impacting funds available for day-to-day operations of our schools, Killips said.
State school funding laws don't allow local districts to levy funds to cover day-to-day operational expenses such as salaries, benefits, classroom materials and instructional resources.
Although local voters approved $28 million worth of bond expenditures in 2004, the community group that met to formulate the bond proposal originally identified nearly $41 million worth of needs. Those needs still exist and can be met with sinking fund dollars, Killips said.
The district has kept a tight rein on expenses, he said, managing to limit the average annual increase in district expenses to less than 1 percent,
The average annual increase in general fund revenue has been 0.37 percent. General fund expenses have increased more than revenue primarily because of increased utility, fuel, health insurance and retirement costs.
"If the renewal of the sinking fund is not successful, we would have to look at our options or a combination of the options," Killips said. "The options would include reducing the maintenance and upkeep of our buildings, utilize the general fund to take care of sinking fund expenses, thus decreasing the amount of money available to educate the children, or go back after the sinking fund at a later date."
Voters also should bear in mind that in 2009-10 the millage levy for the district's current bonds is scheduled to be reduced by approximately 1mill, Killips said.
Voters can find information on the district's Web site at www.chelsea.k12.mi.us or call the main district number at 433-2200 to speak to Killips or be put in touch with a school administrator or school board member.
Sheila Pursglove is a freelance writer. He can be reached at bingley51@yahoo.com.
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