Cook County News Herald

Tax hikes could be budget breakers




In a recent ISD 166 promotional ad in the Cook County News Herald the cost of the 2016 bond issue and levy was presented in per monthly payment figures. I expect this was done to steer voters into believing how little the bond and levy would add to property tax payments. The amounts presented did seem low…maybe even a bit too low according to their calculations. Even using their numbers the outlook of the effect of taxation on property owners looks substantial.

Last year’s board approved levy ($300/ student) and a local operating revenue levy ($424/student) had added $132 in property tax to a $250,000 home according to ISD 166 math.

The “non-voter approved taxes” adjusted from my property tax statement showed the actual amount to be $193 on a $250,000 home for 2016.

This year’s referendum levy ($800/ student) will add another $146. The $6.5 million bond issue will add $49, although I doubt this includes the substantial amount of “yet to be determined” interest that will be paid on the bond over the next 20 years. The total amount levied on your property tax for ISD 166 in 2017 will be $327 on a $250,000 property using the ISD 166 advertised “monthly payment” amounts. Perhaps ISD 166 should be required to show how they calculated their figures?

Voters had no say on the 2015 board approved levy or the local operating revenue levy. Seasonal property owners will have no say on the $6.5 million bond issue. The $6.5 million bond issue will also exclude any voter input for 20 years once it’s in place. An increase in the number of ISD 166 students will also increase your tax, as the levy is per student. Your bond repayment taxes will increase as your property value goes up over the next 20 years.

With expected city levy increases in both Grand Marais and Lutsen and a Cook County tax increase now looming at 26 percent, our property tax statements for 2017 could be real budget breakers.

Bob LaMettry
Grand Marais



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