What is the difference between and operating levy and a building referendum?

When communities support an operating levy, they are providing the district general funds to use for teachers’ salaries, textbooks, co‐curricular programs, transportation, computers, utilities, and general operations.

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A bond referendum provides districts with dollars to make improvements to facilities and building infrastructure only. For example, bonds can be used for major construction, such as renovations, building an addition, building new schools, or addressing deferred maintenance and ventilation deficiencies. Bonds cannot be used to hire teachers, buy textbooks, or for the operation of the district (such as utilities).

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What are the district’s operational needs?

Since the expiration of the Capital Facilities Loan (maximum effort loan) in 2020, the Ogilvie Public Schools has been able to fill budget gaps by refunding bonds, a fund transfer approved by the state, and one-time federal pandemic relief dollars. However, these are temporary measures that will not be available in the future.

 

The district has been close to Statutory Operating Debt (SOD), but has used temporary funds to achieve a positive fund balance. Once these funding sources are gone, the district will most likely be in SOD and not able to cover operating costs. 

 

Under Minnesota law, a school district is in SOD when it reports a year-end net negative general fund balance exceeding more than 2.5% of its operating expenditures.

 

As a result of this funding situation, an operating levy is necessary to sustain programs and services for students. The last time the community approved an operating levy for the Ogilvie Public Schools was 1999.

 

What are the district’s facility needs?

The Ogilvie Public Schools’ PreK-12 building has a series of pressing facility needs, including:

• The  last remaining section of the original roof is in very poor condition and needs to be replaced. It has recently received emergency repairs to keep water out, but those repairs will only last a year.

• Many of the skylights leak and need to be replaced or covered over to prevent water infiltration.  

• The building entrances do not currently meet Minnesota Department of Education safety and security standards. 

• The track needs reconstruction and better drainage.

• The playground is worn and ready for upgrades/replacement.

• Mechanical upgrades are needed in several areas including: the main and small gyms, locker rooms, pool, commons, and auditorium.

• Drainage on our school grounds is a challenge. Ditches and dry wells should be cleaned out to prevent flooding issues.  

• The pool is in need of upgrades, including the filtration system, gutter maintenance, and resurfacing.

 

District leaders and the School Board believe now is the right time to move forward on these important projects, as doing so will only get more expensive if we wait.

 

What process has the district and board used to examine and find solutions to these needs?

District leaders and the School Board have been engaged in a process to examine our district’s most pressing needs and develop potential solutions.

 

The district held an initial community engagement meeting on May 24, 2022. The board then formed a Community Planning Task Force to assist in developing the right plan for the district. Over the past couple months, the task force has been hard at work examining the district’s needs and finding solutions.

 

In summer 2022, district residents provided their input and feedback through a community-wide survey. The results of this survey were extremely helpful toward developing the solutions that will appear on the ballot in November.

 

What is the operating levy question on the ballot November 8?

The operating levy question (Question #1 on the ballot) asks voters to approve an increase to the Ogilvie Public Schools’ current referendum revenue authorization by $720 per pupil for the next 10 years. This funding would help the district address its financial needs, preserve programs and services for students, and avoid the district going into Statutory Operating Debt (SOD).

 

When communities support an operating levy, they provide a school district general funds to use for academic programs, textbooks, co-curricular programs, staff salaries, technology, transportation, utilities and general operations.

 

The operating levy would have an estimated property tax impact of $173 per year on a home worth $125,000 in our community.

 

What are the bond referendum questions on the ballot November 8?

If approved, the two bond referendum questions would allow the Ogilvie Public Schools address its most pressing facility needs through a series of projects. 

 

The first bond question (Question #2 on the ballot) asks voters to approve a $7,050,000 bond to cover the following projects:

• Remodeling front entrances to improve security and better monitor/control visitor access

• Repairing or replacing leaky roof sections and exterior brickwork

• Regrading the site and improving drainage to reduce flooding

• Repairing and upgrading the pool

• Reconstructing the track

• Replacing worn and aged classroom furniture

• Updating the playground

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If this question is approved, it would have an estimated property tax impact of $144 per year on a home worth $125,000.

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The third and final question on the ballot is a 20-year, $2,805,000 bond referendum that, if approved, would allow the Ogilvie Public Schools to upgrade ventilation systems throughout the district. If this question is approved, the estimated property tax impact would be $69 per year on a home worth $125,000.

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How much would the proposed facility projects cost?

If Question #2 is approved, the proposed projects would come at a total estimated cost of $7.08 million. This includes $6,933,893 for addressing the deferred maintenance needs and $150,604 in other expenses. 

 

The total costs for the projects in Question #3 would be about $2.8 million, including $2,764,583 for the ventilation and dehumidification improvements and $39,171 in other expenses.

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Will we get help from the state?

If Question #1 is successful, the state will provide $70,000 in aid. The state will provide $180,000 in aid if Questions #2 and #3 are both successful—for an estimated total of $250,000.

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Our agricultural community would also see additional relief with the Ag2School Credit. In 2019, the state legislature passed an increase to the Ag2credit for agricultural property, from 40% to 70%, in a phased approach. It is now at 70% for Payable 2023 (2022 ‐23 school year). 

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This is permanent law and a tax credit that applies to current and future referendums for all property classified as agricultural.

If you have agricultural land or a business and  would like assistance with your tax calculation, please contact Jodie Zesbaugh, the district’s financial advisor, at 651-697-8526.

 

Would there be greater operational costs associated with these new spaces?

No. Existing annual utility and supply costs for the district are expected to remain relatively unchanged once the projects are completed. This is largely because no new square footage would be added and the replacement of ventilation systems that deliver more outdoor air will be offset by more efficient equipment and new LED lighting installed throughout the building. There will likely be some savings related to pool chemicals, as the new systems would be more efficient.    

 

The district has spent an average of $165,000 annually over the last three years on facility repairs and infrastructure replacements. Making the investments proposed in Question #2 would save approximately $20,000 annually, while the investments in Question #3 would save about $5,000 annually.

 

What would the timeline look like for the facility projects?

If the bond referendum questions are approved November 8, the design process would begin right away. Renovations and remodeling would be set to start in spring 2023. The expected completion of all facility upgrade projects would be fall 2024.

 

How would approved referendum questions affect property taxes?

If approved, the operating levy (Question #1) would have an estimated property tax impact of $173 per year on a home worth $125,000 in our community.

 

An approved Question #2 (bond referendum) would have an estimated property tax impact of $144 per year on a home worth $125,000. An approved Question #3 (bond referendum) would have an estimated tax impact of of $69 per year on a home worth $125,000. 

 

It seems like we vote on a referendum question every year. Is that the case?

No. In 1990, voters of the Ogilvie Public School District #333 passed and received a Capital Facilities 30-year Bond to build the "New School." That loan was satisfied in April 2020. 

 

A condition of that loan was that residents would be taxed at the highest rate imposed by the Minnesota state legislature. During this 30-year period, district residents approved "one-day bonds" to keep their excess tax dollars in the district to be used only for the betterment of facilities, rather than sending their excess tax dollars to the state.

 

This regular one-day bond vote may have given the impression that the district was seeking new funds on a yearly basis. In reality, the vote was a requirement of Minnesota state law. Voters have not approved a levy or bond referendum for the Ogilvie Public Schools since 1999.

 

When will the community vote on the referendum questions?

The operating levy and bond referendum questions will appear on the ballot during the regularly scheduled election of Tuesday, November 8, 2022. For voting and polling location information, please visit https://pollfinder.sos.state.mn.us/.

 

Can I vote early?

Registered voters in Minnesota may vote early by mail by requesting an absentee ballot or by voting in person before election. You can learn more about these options at ​​https://www.sos.state.mn.us/elections-voting/other-ways-to-vote/. 

 

What are the exact questions on the ballot November 8?

The following is the exact language voters in the Ogilvie Public Schools will see on the ballot November 8, 2022. 

 

Question #1: 

The board of Independent School District No. 333 (Ogilvie), Minnesota has proposed to increase the School District’s general education revenue by $720 per pupil, subject to an annual increase at the rate of inflation.  The proposed new referendum revenue authorization would be first levied in 2022 for taxes payable in 2023 and applicable for ten (10) years unless otherwise revoked or reduced as provided by law. Shall the increase in the general education revenue proposed by the board of Independent School District No. 333 (Ogilvie), Minnesota be approved?

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Question #2: 

Shall the board of Independent School District No. 333 (Ogilvie), Minnesota be authorized to issue general obligation school building bonds in an amount not to exceed $7,050,000 for acquisition and betterment of school sites and facilities including, but not limited to, security improvements, roof renovations, pool upgrades, track reconstruction, and playground updates?

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Question #3: 

If School District Question 2 above is approved, shall the board of Independent School District No. 333 (Ogilvie), Minnesota be authorized to issue general obligation school building bonds in an amount not to exceed $2,790,000 for acquisition and betterment of school sites and facilities including, but not limited to, ventilation system upgrades district-wide?

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