While the ISD166 referendum requests on the November ballot appear to be split into two separate issues, both items are actually property tax levies.
The six-year $800/student levy request, if passed, will be in addition to the $724/student in non-voter approved levies now assessed on county property tax statements. $1524/student of levy income will be available to complement about $10,000/student in state/federal dollars funding school operations, staff salaries and benefits and continue paying down substantial school debt. Since the levies are per student, tax revenues will increase as student enrollment increases and with the likelihood that pre-school “students” will now be added to that enrollment total. The amount of your annual property tax assessment will vary each year accordingly.
Voter approval of the 20-year bond request gives ISD 166 permission to levy $6.5 million along with an estimated $100,000 in bonding fees and a yet to be determined amount of interest. An interest rate in the range of 2-3 percent will add from $1.4 to $2.1 million to bond repayment. The proposed bond proceeds are intended to be spent over the next two years, while bond rates are low, to fund a broadly defined list of projects for which costs have not yet been determined. The bond levy will be assessed on all current and future resident, business and seasonal property owners over the next 20 years. The amount of tax levied on your property will go up as its value increases.
It appears that the school district, rather than curbing current financial problems and spending, is intent on expanding programs and more than doubling its long term debt. Much of the requested bond money will be spent on curriculum and classroom enhancements, including $2,000,000 upgrading science classrooms and $1,160,000 on a culinary arts program featuring a new student commercial kitchen. Pre-school has now become an integral part of district planning, as well as emphasis on college credit classes and vocational training.
Enhancements will bring additional costs in staffing, maintenance, facility upgrades and ever-changing technology demands. After the $1524/student in levies expire over the next six years, the district will again find itself seriously underfunded. The 6.5 million bond dollars will all have been spent as bond repayment continues to be assessed on property tax statements for an additional 14 years…and even larger referendum levies are presented to voters.
Bob LaMettry
Grand Marais
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