How Will This Impact My Taxes?

 
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School districts may not offer competing plans on the same bond referendum ballot. The Mora School Board studied all the options ranging from repair to new construction.

Making repairs to the current high school is less expensive but new construction would bring all the benefits of a new school.

A brand new high school will cost an average homeowner $6.09 more per month than it would cost to make needed repairs at the current high school. This would be $1.50 a week for a new school, compared to funding repairs at the current building.

Want to find out the tax impact on your property?

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Learn more about the Ag2School Tax Credit program below.

New Construction v. Repairs

The school board has compared the costs and benefits of new construction to making the most necessary repairs to our 83-year-old high school.  

With new construction, Mora students get all the benefits of a brand new, modern, healthy, energy efficient building. 

Making only the most needed repairs to the current high school improves only some of our infrastructure needs, but leaves us with the same building floorplan and expensive ongoing  maintenance costs.

 
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If voters approve only Question 1, the future facilities needs for students in grades 9-12 will still need to be addressed, in addition to ongoing maintenance expenses of our current high school.  If voters approve both Questions 1 and 2, no further building issues will be outstanding.

If voters approve only Question 1, the future facilities needs for students in grades 9-12 will still need to be addressed, in addition to ongoing maintenance expenses of our current high school.

If voters approve both Questions 1 and 2, no further building issues will be outstanding.

 
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State aid accelerates as cost of project increases

Mora can get up to $26.9 million in state aid if voters choose to invest in a new addition for grades 7-12 (Questions 1 and 2)

 
*for comparison only

*for comparison only

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Construction costs continue to increase

Since Mora has been considering ways to address our high school facility issues, the cost of building of a new Mora High School has increased by $15 million dollars.

 
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Construction experts and financial analysts advised the school board that construction costs have increased at an average of 4.2% per year in the last 10 years. 

Using that data, the projected cost of building a new high school in 2025 is $75.8 million, $16.6 million more than it costs in 2019.

Ag2School Property Tax Credit Reduces Tax Impact

Minnesota’s equalization aid program reduces the cost of constructing a new school by providing districts like ours money based on a calculation that considers the amount of debt the school issues and the district’s property tax base. 

In addition, the state Ag2School Credit program now provides a subsidy for owners of agricultural property in the form of a 50% tax credit.

The Minnesota Legislature created the Ag2School Bonding Credit in 2017 to reduce the property tax impact of school levies for owners of agricultural land. This is a tax credit on all property classified as agricultural, excluding the house, garage, and one acre of land surrounding an agricultural homestead.  

The Ag2School tax credit is 50% for property taxes payable in 2020, and is slated to increase in the next several years.

 

Ag2School Tax Credit

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The resale of the Current high school could be a win for taxpayers

If voters choose to invest in a new building for the entire 7-12 grades, then the current high school property could be sold.  Just like property tax exempt Fairview Elementary School was sold to private developers and now contributes to Mora’s tax base as a commercial property, Mora could have a similar opportunity with our current high school.

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