The St. Michael-Albertville School Board discussed options to potentially help fund construction of a second sheet of ice at the STMA Ice Arena.
The arena is owned by STMA and the cities of St. Michael and Albertville.
All three entities recently met with the youth hockey association to discuss potential funding, with difficult roadblocks in front of nearly all the options.
At the recent school board meeting, the board agreed there is a need for additional ice time for the high school boys and girls varsity teams. While admitting a need, the board noted its first priority is to fund educational programs first, and that any decision must consider the potential of an operating levy vote in the next two to five years.
The board said it does not want to jeopardize a future operating referendum levy increase.
The board reviewed four funding options: one-time contribution, annual contributions over a number of years, abatement levy and voter-approved levy.
It ruled out annual contributions from the general fund because of the potential of cuts in future years and because, in good faith, it can’t legally commit future boards.
Board members were receptive to a one-time contribution, but noted it would not be significant enough for the two cities to set a levy that would be acceptable to city taxpayers.
For the tax abatement levy, the board requested additional information and asked that its financial consultant attend the board’s next meeting Monday, Nov. 2.
The board prefers a voter-approved bond levy because the community would vote and there is state equalization aid up to 40 percent, but such a vote would not be for a single project such as a second sheet of ice. Also, if the board were to proceed with a voter-approved levy, it would not be before an operating levy.
Cities can issue tax abatement levies without voter approval for eligible economic development projects. In this scenario, Albertville would issue the bond (such as a 20-year bond) and all three arena owners would then levy a property tax to pay for the bond. The three would contribute toward paying off principal and interest.
Supt. Jim Behle said, for example, if youth hockey provides $1 million up front of an $8 million project, that would leave $7 million to be split in thirds among the district and cities. For STMA, he said that would be about an eight tenths percent increase in the schools’ tax levy.
“The main thing that came out of our meeting was some discussion, can the district participate as a full partner and if so what would be those options?” Behle summarized.
In other news, the board:
HEARD that board member Doug Birk, Supt. Behle and Schools for Equity in Education President Brad Lundell met with Sen. Mary Kiffmeyer and Rep. Eric Lucero to discuss and continue their work on an equity legislative bill and strategy in preparation for the next legislative session. STMA consistently ranks near the very bottom in per pupil funding, and the district has urgently sought legislative action for greater equity in the funding formula.
Contact Aaron Brom at aaron.brom@ecm-inc.com