A locally voted millage for the purpose of construction or renovation of school buildings and other capital expenditures as permitted by the law. A sinking fund is restricted in use by the language contained in the millage request and is strictly enforced by the Michigan Department of Treasury. The maximum millage that can be levied is 3-mills annually for no longer than ten years. One advantage of a sinking fund millage over a debt millage is property taxes directly pay for the capital expenditures; meaning there is no interest expense for debt. Sinking funds are typically used for smaller type projects or over a longer period of time.