The St. Michael-Albertville School Board tabled any further action on funding ice arena expansion until Albertville and St. Michael determine a maximum acceptable tax increase.
The school board and cities of St. Michael and Albertville have discussed plans by the Youth Hockey Association to fund expansion of the school district/cities owned ice arena in Albertville that presently has only one sheet of ice. The association has relayed urgency about the need for additional ice to support a burgeoning youth hockey program in addition to varsity high school needs.
Greg Crowe of the district’s financial consultants, Ehlers Inc., was present to compare a tax abatement levy versus a voter-approved levy and the tax implications that come with each.
Tax abatement is a process where cities and school boards can levy without voter approval for eligible expenses.
Crowe said the tax abatement levy proposed for ice expansion would be well below the maximum set by state statute and would not impact the district’s bond rating. He said the levy would be included in the “other levy” category on individual tax statements.
Crowe added that the school districts are restricted from using tax abatement levies other than for repair and construction of parking lots. But he said cities can use the tax abatement levy for economic and public improvement projects, and that the school district is permitted to participate in such a levy for the hockey arena since the bonds are issued by a city.
Crowe said the preliminary levy information shows that the tax impact is less for a voter-approved levy when compared to the tax abatement levy. Additionally, he pointed out that all projects funded with a voter-approved levy must be approved by the Minnesota Department of Education.
Youth hockey association president Chris Hansen said their $1 million contribution consists of money raised through fund raising, a “hockeyville” grant, state “Mighty Ducks” grant application, and a bank loan up to $500,000, adding they don’t anticipate on using the maximum loan amount and would continue fund raising.
Hansen also said the high school hockey teams have a year’s less practice time over three years than in other schools due to the limited amount of ice time.
Some audience members objected to school district taxpayers paying for a facility that would be used by a limited number of students and community members.
Responding to an additional audience question, board chairperson Doug Birk said money to build an arena does not come from the district’s operating fund and would not affect funding for other educational programs.
An audience member countered the notion that the facility would be used by a select few, saying communities with more than one ice sheet convert one of the sheets in the off-season for use by lacrosse and soccer teams.
The board agreed to take no further action until Albertville and St. Michael determine a maximum acceptable tax increase for a second sheet of ice.
Additionally, the board will attempt to reach a consensus on its position of funding a second sheet of ice at its Monday, Nov. 16, meeting in order to prepare for the next joint STMA, St.Michael and Albertville meeting planned for Monday, Nov. 30.
In other action, the board:
HEARD a request for the board to record its meetings on audio and/or video, The board directed Supt. Jim Behle to bring information to the Jan. 4 meeting.
HEARD a request that parents be informed of electronic device and application use in the primary and elementary classrooms. Supt. Behle said the devices and apps are used as tools to deliver the approved curriculum. He also said protecting student data privacy and following state and federal laws protecting its use is very important.
AUTHORIZED the sale of general obligation school building refunding bonds that will reduce debt service payments by $5,208,277 and reduce property tax levies payable in 2016 through 2026.
Contact Aaron Brom at aaron.brom@ecm-inc.com