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District outlines sinking-fund and bond road maps, warns cost of delay will rise
Summary
Consultants presented two funding road maps—synchronized sinking fund plus bond in November or a sinking fund in 2026 with a 2028 bond—showing estimated bond proceeds and the increased project costs from waiting; trustees asked for prioritization and the steering team will make a recommendation June 29.
Midland Public Schools’ facility planning consultant from GMBB presented two funding road maps on June 15 that frame how the district could fund major capital work over the next decade: (1) place a sinking fund and bond together on a November ballot to accelerate projects, or (2) start with a sinking fund in November 2026 and pursue a bond in 2028, delaying large-scale construction by two years.
GMBB summarized estimated outcomes for each path using updated county tax rules and conservative projection assumptions (5% interest rate and a 2.75% taxable-value growth rate for the first five years). In a two‑mill scenario, a November 2026 bond could generate about $190 million; waiting until 2028 increases the estimate to about $199 million. A 2.5‑mill scenario would generate about $229 million in 2026 versus $240 million in 2028 under the model. The consultant noted escalation in construction costs (roughly 4–4.5% annually), so delaying a project raises both the required bond total and the out-year cost to taxpayers.
The presentation delineated what sinking-fund dollars can cover versus bond proceeds: maintenance-level activities (annual upkeep) are generally operating expenses and not sinking-fund-eligible; repairs (e.g., replacing a failed hinge) can be paid from a sinking fund; renovations and new construction are bond-eligible. The team described sample three-year and six-year allocation plans under 1‑mill, 2‑mill and 2.5‑mill sinking-fund scenarios that include bus replacements (two buses per year projected), safety and security systems, classroom instructional technology, roof and envelope work, and longer-term modernization (including possible sprinkler systems).
Consultants also shared community engagement results: a district survey yielded more than 1,800 responses with an 85% completion rate, and a phone poll was completed. The steering team is scheduled to finalize a recommendation on June 29; the board will review a finalized scope on July 20 and prepare ballot language for an August action if the board chooses to proceed.
Board members repeatedly asked how to prioritize 'needs' versus 'wants' from the facility assessment, how sinking-fund dollars interact with existing general-fund uses for maintenance, and how the district should leave carryover to respond to emergent failures (e.g., boilers struck by lightning or chillers damaged). GMBB recommended planning yearly priorities while maintaining carryover buffers; administration said a one‑mill scenario typically retained several hundred thousand dollars per year as a buffer, whereas a two‑mill scenario carried more.
Ending: The steering team will present its resolution June 29; staff and consultants will provide more detailed cost and prioritization work for board review before the board decides whether to place a sinking fund and/or bond question on a ballot.
