The "Sinking Fund" Explained

  • A Sinking Fund is a millage levied in Michigan dedicated to support the repair and construction of school buildings.  The Sinking Fund is a pay-as-you-go method for building repairs and projects. The district does not pay interest on the money used. All of the work that is paid by sinking funds must be competitively bid and contracted.  None of the sinking funds can be paid to employees.  Here are some examples of what the sinking fund can pay for:
    (See below for details of actual AAPS Sinking Fund expenditures.)

    • Boilers to heat buildings
    • Paving of parking lot
    • Roofing
    • Building system replacements such as HVAC and plumbing
    • Accessibility needs as per the Americans with Disabilities Act

    Sinking funds cannot be used to pay for instructional programs or salaries.

    Work accomplished with AAPS Sinking Funds from 2017 through summer 2019 includes:

      Roofing $ 4,642,000   Playgrounds $ 2,746,000
      Paving $ 5,443,000   Athletics $ 4,638,000
      Additions $10,905,000   Water Quality $ 1,200,000
      Renovations $ 5,173,000   Other Repairs $ 22,404,000
            TOTAL $ 57,151,000