Hello Ann Arbor Public Schools Students, Staff, Parents and Community,

 

Thank you for your vote to renew the Ann Arbor Public Schools (AAPS) sinking fund millage. The renewal is a meaningful show of support for our schools that we do not take for granted.

 

As a reminder, the sinking fund renewal does not change your tax rate.  It does ensure that AAPS can continue making the critical investments in our buildings and facilities that our students and staff deserve, including roofing repairs, solar panel installation, improved paving and building safety and security improvements. These types of infrastructure investments help to create a foundation of safe and healthy learning environments.

 

Without the sinking fund, these types of projects would have pulled resources from the district’s General Fund, which serves as the primary revenue source for educational programs, student services and staff salaries. This vote is an important step in protecting valuable resources as we work towards ensuring the long-term financial health of the district.

 

Thank you for your continued investment in supporting our Ann Arbor students, staff and schools.

 

Sincerely

Jazz Parks

AAPS Superintendent of Schools

Sinking Fund Renewal Supports AAPS School Infrastructure

From solar energy to roof repairs and boiler replacements, the Sinking Fund is a tool for keeping Ann Arbor Public Schools facilities safe, efficient, and ready for students.

 

School buildings require ongoing investment to remain safe, efficient, and available for daily learning. For the AAPS, the Sinking Fund is one of the district's primary tools for addressing these needs. Unlike the AAPS Capital Program Bond, which supplements the Sinking Fund and supports large-scale investments, such as additions, new construction and major modernization projects, the Sinking Fund provides steady, annual revenue dedicated to facility repairs, maintaining capital infrastructure, and targeted improvements across the district’s 36 buildings.

Four Key Takeaways on the AAPS Sinking Fund:

• A Sinking Fund is a voter-approved funding source: In Michigan, sinking funds provide school districts with dedicated revenue for building repairs and construction without incurring debt, interest costs, or taking away from the general fund.
• Behind-the-scenes infrastructure matters: From boiler replacements and door upgrades to electronic card access systems, the Sinking Fund addresses infrastructure that keep school buildings running safely and efficiently.
• Roof repairs to protect structural integrity for the long-term: Sinking Fund investments in roofing across multiple schools extend building lifecycles and prepare structures for future solar installations.
• Solar energy expansion across the district: AAPS has expanded rooftop solar arrays with support from the Sinking Fund, reducing operating costs, reducing carbon emissions, and increasing district resiliency through onsite clean energy generation. 

 

What is a Sinking Fund?

In Michigan, school districts do not receive state funds earmarked for capital improvements to buildings. Instead, districts rely on bonds, grants, and sinking funds for facility projects. A sinking fund is a voter-approved millage dedicated to the repair and construction of school buildings. According to the Michigan Association of Superintendents & Administrators, a sinking fund   provides the district with money to pay for projects as they are completed, without borrowing  or paying interest. State law prohibits districts from using sinking funds for salaries or instructional programs.

The AAPS Sinking Fund is separate from both the general operating fund and the 2019 Capital Program Bond. While a bond funds school construction and major renovations, the Sinking Fund addresses the ongoing facility needs that keep existing buildings in good condition for students and staff. Recent changes to Michigan law have expanded the eligible uses of sinking funds to include school security improvements, technology infrastructure, and the acquisition of student transportation vehicles, giving districts like AAPS additional flexibility in how these funds are applied. 

Protecting General Fund Dollars for Instruction

One of the key functions of the Sinking Fund is to protect the district’s general operating fund, which pays for instruction, programs, and salaries. Without a Sinking Fund, facility repairs would compete directly with classroom spending. By providing a dedicated, voter-approved revenue stream for building projects, the Sinking Fund ensures that infrastructure investments do not come at the expense of educational programming.

Behind-the-Scenes Infrastructure That Keeps Schools Running

Not every Sinking Fund project is immediately visible to students, staff and parents, but the work is no less important. Recent Sinking Fund investments included a boiler replacement at Allen Elementary, an electrical transformer replacement at Clague Middle School, and floor refinishing across several middle school buildings. Loading docks at Clague Middle School, Scarlett Middle School, Forsythe Middle School, Ann Arbor Open, Community High School, and Pittsfield Elementary received repairs where concrete had deteriorated and steps had become damaged by heavy use, salt, and the freeze-thaw cycle of Michigan winter.

Expanding Solar Energy Across the District

One of the most visible categories of Sinking Fund investment in recent years has been the expansion of solar energy infrastructure. AAPS has installed rooftop solar arrays at multiple district buildings, and in 2025 the district added new arrays at Clague Middle School and Skyline High School. These 2025 installations added over 1,024 kilowatts of AC output capacity to the district, producing enough electricity annually to power over 220 homes and sequestering the carbon equivalent of over 1,365 acres of forest each year.

Roof repairs frequently accompany solar installations and are also an approved use of sinking fund dollars. Before panels can be mounted, the roofing surface must be assessed and, where necessary, strengthened or replaced to ensure it is structurally sound and weather-tight. 

Supporting Electric Vehicle Infrastructure

The Sinking Fund has also supported the district’s transition to electric school buses. At the AAPS Transportation Center, Phase I of the EV charging infrastructure includes eight single-port and three dual-port chargers. Phase II, scheduled for summer 2026, will add an additional five dual-port chargers. The district currently operates fourteen electric buses, with ten more expected. The combined solar and EV charging installation at the Transportation Center ensures that the energy used to charge buses comes, in part, from renewable sources generated on-site. The Sinking Fund helps to offset the cost of these mostly grant-funded expenditures.

An Ongoing Investment in AAPS Facilities

The breadth of Sinking Fund projects across Ann Arbor Public Schools reflects the range of needs in a district with an average building age approaching  70 years. Solar energy installations reduce operating costs and advance sustainability goals. Roof repairs, door replacements, and boiler upgrades maintain structural integrity. Additionally,  security improvements like card access systems and emergency notification devices help protect students and staff. 

Together, these investments demonstrate how the Sinking Fund operates as a steady, essential mechanism for maintaining high-quality facilities where AAPS students learn every day.

 

FREQUENTLY ASKED QUESTIONS

 

For the state of Michigan, Ann Arbor Public Schools (AAPS), the Sinking Fund is one of the primary tools the district uses to address the district’s facility needs. The Sinking Fund provides steady, annual revenue dedicated to facility repairs, maintenance, and targeted improvements across the district’s 36 buildings.

 

Question 1: What is the Sinking Fund used for?

 

The sinking fund is a voter-approved millage that the district uses for the repair and construction of school buildings and facilities. Eligible work includes improvements related to ADA accessibility, athletic facilities, boilers,  HVAC, paving, playgrounds, plumbing, roofing, school security improvements, and technology infrastructure. By Michigan law, Sinking Fund dollars cannot be used for salaries, instructional programs, or routine maintenance.

 

Question 2: How does the Sinking Fund help AAPS' overall budget?

 

The Sinking Fund provides the district with a funding source for facility repairs, which means the district does not borrow money or pay interest on those projects. Since 2017, this has represented roughly $6 to $9 million in annual capital work. Without it, these types of building repairs would shift to the General Fund, which is the same fund that pays for teaching, learning, and salaries. Certain types of building repairs are not eligible to be paid for from the Bond.

 

Recent changes to Michigan Revised School Code have expanded the eligible uses of sinking funds to include school security improvements, technology infrastructure, and the acquisition of student transportation vehicles, giving districts like AAPS additional flexibility in how these funds are applied. 

 

Question 3: With the Bond Program, why do we still need to renew the Sinking Fund millage?

 

The Bond and the Sinking Funds serve different purposes under Michigan law.  Bonds are funds for large capital projects such as new construction and major modernizations, while sinking funds are designed for ongoing repairs to capital infrastructure such as roofs, boilers, paving, and plumbing. The Bond Plan was developed with the expectation that voters would have the opportunity to consider Sinking Fund renewals in 2026 and 2036, because bond programs are not designed to cover recurring building needs. 

 

Question 4: How has the sinking fund money been used in the past 5 years?

 

Recent Sinking Fund work has included rooftop solar arrays at several school facilities; roof repairs at multiple schools across the district; playground replacements at every elementary school; water quality improvements, touchless and hands free fixtures; ventilation and HVAC controls improvements; elevator modernizations; ballfield restorations; over 500 native climate resilient trees planted; Bryant and Pattengill interior renovations; synthetic turf and pool timing board upgrades at Huron, Pioneer, and Skyline high schools; a boiler replacement at Allen Elementary; loading dock repairs at six school buildings; exterior door and electronic card access replacement; and electric vehicle charging infrastructure at the AAPS Transportation Center.

 

Question 5: Will a vote to renew the Sinking Fund increase my taxes?

 

No. A Sinking Fund renewal continues a millage that voters originally approved in 2017. The rate is currently set at 2.4031 mills or $2.4031 per $1,000 of taxable value. You can find the millage rate, duration, and projected revenue in the ballot language here.

 

Question 6: What goals could be accomplished if the Sinking Fund is renewed?

 

Renewal revenue would continue to fund the Phase 2 Capital Improvement Plan, which the district presents to the Board of Education in regular updates. AAPS District buildings have an average age of more than 70 years. Across the 36 buildings, planned work categories include school security improvements, solar energy expansion, technology infrastructure, playground replacements, athletic facility maintenance, and continuing to repair and replace roofing, HVAC, plumbing, and paving.

 

Question 7: How will the district operations be affected if the Sinking Fund is not renewed?

 

According to the February 2026 Phase 2 Capital Plan Adjustments report presented to the Board of Education, the absence of Sinking Fund renewals in 2026 and 2036 would create a projected $583 million shortfall in the Capital Program. Repair costs currently covered by the Sinking Fund would shift and drain the General Fund, thereby competing with funds typically used for salaries and programs. The same report indicates that negative cash flow could occur as early as 2028 without a renewal, should investments continue at the targeted pace, requiring adjustments to project timelines, scopes, and costs across the capital program.

 

On Tuesday, August 4th, on the ballot will be a renewal of our Sinking Fund Millage. This millage provides funding for the construction or repair of school buildings, security improvements, acquisition of technology and school buses. This renewal and another for 2037 were included in the planning for the 2019 Bond campaign.

Review the ballot proposal here.

You can review the Board of Education resolution on the ballot proposal here.

You can review the presentation on options for the Sinking Fund Millage Renewal here.

We will share additional information on the proposal on this page.