The St. Michael-Albertville School Board agreed it does not support a proposed tax abatement levy to fund expansion of the STMA Ice Arena, but is open to considering a more traditional voter-approved levy.
The board also hosted the annual truth-in-taxation hearing.
ICE ARENA
In discussion during the last month has been a possibility of the ice arena owners — St. Michael, Albertville and the school district — to support a tax abatement levy to help fund construction of a second sheet of ice. Such a levy (addressing a demonstrated need such as more ice) could be issued without voter approval, and that fact has created unease among board members.
The board thus discussed a preference by some to authorize a voter-approved levy referendum, with the advantage being potential millions in state equalization. In other words, a project size of $5 million to $8 million would mean the state would equalize as much as 40 percent to 60 percent of the amount, or $2 million to $4 million.
“In the end there was no consensus to move forward with a tax abatement levy,” Supt. Jim Behle later said.
The board said it continues to share consensus about the need for a second sheet of ice and the negative impacts on school activity programming by continuing under the status quo.
Thus, next month the board will examine whether another funding mechanism, such as voter-approved bond, may be appropriate to help fund a second sheet of ice. The board will also examine when such a vote, if approved by the board, should be presented to voters.
The board will examine the scope, cost and nature of the project and timing of a future voter-approved bond. The board also discussed addressing other school district facility and grounds needs in a voter-approved bond.
It reached consensus to move forward with a design committee including board member Jeff Lindquist, Supt. Behle and boys varsity hockey coach Jerr Johnson. The arena’s other co-owners, St. Michael and Albertville, have also appointed members to the committee.
The board concluded it has strong interest to continue working with St. Michael, Albertville and Youth Hockey to determine a design and cost for the hockey arena second sheet of ice.
Lastly, the board directed Supt. Behle to develop a timeline for a voter-approved levy that included identification of other district and facility needs, steps for seeking approval by the Minnesota Department of Education, and options for dates for an election. A draft of the timeline will be presented to the board at its Tuesday, Jan. 19, meeting.
Supt. Behle said a vote would take place either in November 2016 or after. The latest the board could choose to have a bond referendum would be late August, but Behle predicted the board would most likely make a decision before that.
“The board has made no decision to do a voter-approved levy, it’s just a possibility,” he said. “But we will come up with a timeline.”
TRUTH-IN-TAXATION
In further matters, the board hosted the annual truth-in-taxation hearing that includes information about school funding, property tax levies and budgets, actual 2015 and budgeted 2016 district budgets, and the district’s proposed tax levy for taxes payable in 2016.
Supt. Behle presented the report. He said the levy increased $126,151, or 1.07 percent, whereas statewide levies increased 7.5 percent.
Behle stated that the levy is primarily formula driven by state statute and impacted by enrollment, census, and equalization aid. The budget will be adopted in June 2016. Behle encouraged anyone to visit the district website for the full Truth in Taxation presentation.
In other action, the board:
ACCEPTED the audit report. The auditors issued the best opinion for STMA, and said that, overall, the district continues to be sound and stable. A full audit report is available on the district website.
HEARD from board chairperson Doug Birk about his attendance at the Minnesota School Boards Association Delegate Assembly. He said there was a resolution based upon a bill authored by STMA related to equity funding for the lowest funded school districts such as STMA.
Contact Aaron Brom at aaron.brom@ecm-inc.com