Q: What happens if the referendum is approved?
A: If approved, the operating levy would help the district maintain student programs, maintain small class sizes, retain quality teachers, and update classroom equipment. If Question two is approved, the district would invest in infrastructure including the last section of roof replacement, leaking skylights, increased safety and security at entrances, and address needs for the pool, track, and playground. If Question three is approved, the district would update ventilation in the gyms, cafeteria/commons, and Career and Technical Education (CTE) classrooms and Agriculture and Construction Shops; as well as finish the 3rd (last) phase of the Health & Safety ventilation projects in the district.
Q: What if the referendum is not approved?
A: If not approved, the district will continue to make budget reductions and the building will further deteriorate, costing more to repair in the future.
If the operating levy is not approved, the district will need to make significant budget cuts. The last two years, expenses have exceeded revenues. Fortunately, the district has been able to fill budget gaps by refunding bonds, making a fund transfer approved by the state, and utilize one-time federal pandemic relief dollars. However, these are temporary measures that will not be available in the future.
If the bond referendum questions 2 and 3 are not approved, it would take more than a decade of state aid for long-term maintenance to address issues that need to be addressed today. No decision has been made, but the school board would likely come back to voters in subsequent years with another bond request. Due to increasing construction costs and interest rates, the cost is likely to increase significantly.
Q: What is the difference between an operating levy and a building bond referendum?
A: 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 the general operation of the district.
On the other hand, a bond referendum provide districts dollars to make improvements to facilities and building infrastructure only. For example, bonds can be used for major construction such as renovation, building an addition, building new schools or for general building projects such as addressing deferred maintenance and ventilation deficiencies. Bonds, however, cannot be used to hire teachers, buy textbooks, or for the operation of the district such as utilities.
Q: Why can't you continue to use long-term maintenance funds or another revenue source for facility work?
A: We have used all of those resources already, and it will take years to complete the work if we only rely on our long-term maintenance funds - some projects, especially the southwest section of the roof won't last that long. It is in very poor condition, and has recently received emergency repairs to keep water out, but these repairs will only last a year or two. This is the last section of roofing that needs to be replaced. In addition to roofing, many of the skylights leak and need to be replaced or covered over to prevent water infiltration. Ventilation is another issue. Many areas of the building have received upgraded ventilation and dehumidification systems in the summers of 2021 and 2022. Areas that have been addressed included all classroom wings, the media center, the administration area, band/choir area, shop classrooms, and west gym. Those of you who have been to a game in the main gym know that it gets very warm. It and the small gym, locker rooms, pool, commons, and auditorium require ventilation work to match the rest of the school.
Q: Will we get any assistance from the state?
A: If question 1 is successful, the state will provide $70,000 in aid and an additional $180,000 if both questions 2 and 3 are successful for a total of $250,000.
Our agricultural community would also see additional relief with the Ag2School property tax credit. The legislature successfully passed legislation in the 2019 session to increase the Ag2School for agricultural property from 40% to 70%, in a phased approach. It is now currently at 70% for taxes payable in 2023. This is permanent law and is shown as a tax credit on your property tax bill. Tax credit applies to current and future school bond referendums for all property classified as agricultural (excluding the house, garage and one acre).
If both questions 2 and 3 pass, approximately $1.7 million of the $9.8 million bond amount (or 17.1%) would be paid by the state over the life of the bond.
Q: Why are there two bond questions?
A: A community survey was completed as part of our process in the spring. We learned that respondents were less inclined to vote for a more expensive referendum, so we broke our needs down into two questions to allow voters to consider how important the needs of our school are to them.
Q: How do proposed solutions benefit our kids and community?
A: Our buildings are used year-round by not just our students but also members of our community. Having adequate, safe, and secure facilities creates productive environments for our students, keeps our district appealing to families looking to move to the area, promotes strong schools and helps support a vibrant community.
Q: Would there be greater operational costs associated with these new spaces?
A: 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.
Q: What would the timeline look like for the facility projects?
A: 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.
Q: It seems like we vote on a referendum question every year. Is that the case?
A: 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.
A: If approved, the operating levy would help the district maintain student programs, maintain small class sizes, retain quality teachers, and update classroom equipment. If Question two is approved, the district would invest in infrastructure including the last section of roof replacement, leaking skylights, increased safety and security at entrances, and address needs for the pool, track, and playground. If Question three is approved, the district would update ventilation in the gyms, cafeteria/commons, and Career and Technical Education (CTE) classrooms and Agriculture and Construction Shops; as well as finish the 3rd (last) phase of the Health & Safety ventilation projects in the district.
Q: What if the referendum is not approved?
A: If not approved, the district will continue to make budget reductions and the building will further deteriorate, costing more to repair in the future.
If the operating levy is not approved, the district will need to make significant budget cuts. The last two years, expenses have exceeded revenues. Fortunately, the district has been able to fill budget gaps by refunding bonds, making a fund transfer approved by the state, and utilize one-time federal pandemic relief dollars. However, these are temporary measures that will not be available in the future.
If the bond referendum questions 2 and 3 are not approved, it would take more than a decade of state aid for long-term maintenance to address issues that need to be addressed today. No decision has been made, but the school board would likely come back to voters in subsequent years with another bond request. Due to increasing construction costs and interest rates, the cost is likely to increase significantly.
Q: What is the difference between an operating levy and a building bond referendum?
A: 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 the general operation of the district.
On the other hand, a bond referendum provide districts dollars to make improvements to facilities and building infrastructure only. For example, bonds can be used for major construction such as renovation, building an addition, building new schools or for general building projects such as addressing deferred maintenance and ventilation deficiencies. Bonds, however, cannot be used to hire teachers, buy textbooks, or for the operation of the district such as utilities.
Q: Why can't you continue to use long-term maintenance funds or another revenue source for facility work?
A: We have used all of those resources already, and it will take years to complete the work if we only rely on our long-term maintenance funds - some projects, especially the southwest section of the roof won't last that long. It is in very poor condition, and has recently received emergency repairs to keep water out, but these repairs will only last a year or two. This is the last section of roofing that needs to be replaced. In addition to roofing, many of the skylights leak and need to be replaced or covered over to prevent water infiltration. Ventilation is another issue. Many areas of the building have received upgraded ventilation and dehumidification systems in the summers of 2021 and 2022. Areas that have been addressed included all classroom wings, the media center, the administration area, band/choir area, shop classrooms, and west gym. Those of you who have been to a game in the main gym know that it gets very warm. It and the small gym, locker rooms, pool, commons, and auditorium require ventilation work to match the rest of the school.
Q: Will we get any assistance from the state?
A: If question 1 is successful, the state will provide $70,000 in aid and an additional $180,000 if both questions 2 and 3 are successful for a total of $250,000.
Our agricultural community would also see additional relief with the Ag2School property tax credit. The legislature successfully passed legislation in the 2019 session to increase the Ag2School for agricultural property from 40% to 70%, in a phased approach. It is now currently at 70% for taxes payable in 2023. This is permanent law and is shown as a tax credit on your property tax bill. Tax credit applies to current and future school bond referendums for all property classified as agricultural (excluding the house, garage and one acre).
If both questions 2 and 3 pass, approximately $1.7 million of the $9.8 million bond amount (or 17.1%) would be paid by the state over the life of the bond.
Q: Why are there two bond questions?
A: A community survey was completed as part of our process in the spring. We learned that respondents were less inclined to vote for a more expensive referendum, so we broke our needs down into two questions to allow voters to consider how important the needs of our school are to them.
Q: How do proposed solutions benefit our kids and community?
A: Our buildings are used year-round by not just our students but also members of our community. Having adequate, safe, and secure facilities creates productive environments for our students, keeps our district appealing to families looking to move to the area, promotes strong schools and helps support a vibrant community.
Q: Would there be greater operational costs associated with these new spaces?
A: 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.
Q: What would the timeline look like for the facility projects?
A: 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.
Q: It seems like we vote on a referendum question every year. Is that the case?
A: 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.
