The Niles Community Schools Board of Education is expected to vote on a proposal to borrow as much as $2 million in an advance on the district’s current sinking fund and foundation pledges at its next meeting, June 27.

“This is borrowing against funds that we already know we will receive,” Supt. Richard Weigel said. “We have some urgent needs in our district that we must address. For example, the bus drop-off and parent drop-off at Howard is not a good situation. I am concerned about student safety and we just cannot wait any longer before we address it.

“Teachers have repeatedly told me that they are concerned for child safety and it is an issue that must be addressed before school begins in the fall,” Weigel said. “We also have $500,000 pledged from different local foundations over the next three years for our New Tech Academy. However, we need some of those funds right now to purchase the equipment needed by fall.”

The Howard Elementary School parking issue isn’t the only project scheduled to be addressed with the advance. Those projects include:

• Improve the bus and parent drop-off at Howard Elementary School.

• Support the Cyber Cafe at NHS along with funds from the Niles Education Foundation and Chartwells.

• Improve the serving lines for NHS.

• Improve the rooms for the Niles New Tech Entrepreneurial Academy.

• Put in the technology infrastructure for Eastside School.

• T12 and T8 lighting conversion for a 20 percent energy savings.

• Miscellaneous improvements including some plumbing at Eastside, resurface the parking lot at Eastside, improve security in the elementary buildings and electrical upgrades at NHS.

Niles Community Schools receives a little more than $500,000 each year from sinking fund revenues and has $500,000 pledged over the next three years for the New Tech Academy.

Jeff Curry, who serves as treasurer of the board’s finance committee, said the group has been discussing the option and believes now is a unique opportunity for the advance.

“Interest rates are at absolute historic lows,” Curry said. That, coupled with the current rate of inflation, presents a unique time to borrow.

The sinking fund millage is a limited property tax, considered a pay-as-you-go method for addressing building remodeling projects. According to the district, the state mandates that a school district may ask voters to approve a taxation for a sinking fund and Niles Community Schools did this many years ago for the purpose of maintaining aging buildings. The district has the income for another seven years.

“Our sinking fund is a blessing from the community and we are intent on using those funds wisely,” Weigel said. “Borrowing some money against future payments allows us to do some improvements right now that have been put off for a long time. It does not, however, provide enough funds to upgrade all the facilities or replace the boilers in all the buildings — that is another big need. Eventually we will need to replace the heating systems in all of our buildings.”

United Federal Credit Union would loan the funds to the district, to be paid back with sinking fund money.

The State Treasury Department has strict guidelines for the use of sinking fund dollars and specifically those funds are not allowed to be used for teacher or administrator salaries. Sinking funds may be used for purchasing, completing, remodeling or repairing facilities or parts of or additions to those facilities; acquiring and improving sites for school buildings, structures, athletic facilities, playgrounds or other facilities; and technology infrastructure. Technology in this case refers to wiring or materials used for installing technology. It does not include equipment or software. This fund may be used for repair but not for maintenance.

In short, sinking funds can’t be put toward salaries and compensation, for example.

Both Curry and Weigel were asked how they might handle criticism for borrowing money necessary for a slate full of projects at a time when districts are cutting spending.

“Some (of the projects) could be put off for later,” Weigel said. “Or we can do them now to make life better for our children. They’re not big but I think they are important.”

Curry hopes the community won’t focus on criticism.

“I think if you’re intimately involved with what’s going on with schools, we can’t afford not to,” he said. “We’re at an edge of a cliff, falling off the cliff — we being Michigan, not just Niles. We can handle this stuff. We can handle this absolutely.”

Curry added he believes the changes within the district are already starting to show positive results, citing the at-capacity levels of enrollment for both New Tech and Eastside Connections School.

“We finally have Schools of Choice kids coming to Niles, not from Niles,” he said. “We absolutely can not afford to lose students. We have to gain and of course provide the best education that we can.

“I find any criticism about the fact that we’re doing too much to be … I just don’t think it’s accurate at all,” Curry said. “It’s absolutely tremendous, what’s going on right now. We could have piecemealed this renovation of the New Tech wing over a couple of years, but why not do it now, more cost effectively? It just, to me … it’s a lot more financially prudent. We can pay it back. We have a defined repayment source.”

The board will vote on the item during its next meeting Monday, June 27 at 7 p.m. at the Westside Administration Building.