The Cost
Learn about the tax impact of the plan.
The cost and tax impact of the referendum
The $10.965 million investment to renovate Saint Peter Middle School will be supported by a property tax increase. The increase will take effect starting in 2025 and expire after 20 years or when the bonds for the project have been paid off, whichever is sooner.
Your individual tax impact depends upon the value of the property you own. For example, the tax impact on a residential home valued at $225,000 – approximately the median home value in our district – will be $5.50 per month starting in 2025.
You can easily determine your projected tax impact using our tax calculator by entering your parcel ID number or estimated property value.
Are there ways for taxpayers to reduce their tax impact?
Yes. Minnesota’s Ag2School tax credit lowers the cost of bond referendums for agricultural landowners. This automatic 70% tax credit is provided to all agricultural property within the district except homes, garages, and one acre surrounding agricultural homesteads. Ag2School is projected to pay for 15.8% of our referendum’s cost.
Minnesota also offers multiple other tax credits and deferrals that can reduce the tax impact of an approved referendum, such as the Minnesota Homestead Credit Refund, Special Property Tax Refund, and the Senior Citizen Property Tax Deferral. These credits and deferrals are subject to additional qualifications based on age, income, and tax burden.
Additional information about the board-approved project
In December, the school board used its existing levy authority to fund the replacement of the middle school’s existing boilers and HVAC systems. Many of the systems are original to the building and can no longer be repaired cost-effectively. This project is separate from the investments included in the bond referendum.
Design work for the replacement of the HVAC systems is currently underway, with the work scheduled to be completed over the next few summers. The proposed referendum improvements will be completed in conjunction with the HVAC work. This will take advantage of cost and schedule efficiencies.
The cost of the HVAC work is approximately $22 million, which results in a monthly tax impact of approximately $6.02 per month starting in 2025 for a $150,000 residential home in the district. Click here to view the tax impact chart that includes the board-approved project and the building bond referendum. To understand your estimated tax impact for ONLY the referendum, please use our tax calculator.
What has the district done to maximize the value of this plan?
The investment plan was designed with the goal of providing long-term value to Saint Peter’s students, staff, and community. Over the past few years, our district has cut spending by over $1 million, refinanced previous bonding projects to save an additional $8 million, and worked hard to improve the financial health of our district.