School board approves tax-abatement plan to fund parking-lot repairs, authorizes first bond sale for larger facilities work

The St. Francis Area Schools Board of Education on Aug. 25 approved a resolution authorizing a property-tax abatement of up to $1,375,000 over five years to fund phase 1 of district parking-lot repairs and related sidewalk work, and granted administrators authority to proceed with the first bond sale in a two-part financing plan for a broader $36.2 million indoor-air-quality and facility maintenance program.

The vote followed a public hearing required under Minnesota statute on the proposed abatement and a presentation from Michael Hart of PMA, who explained the financing plan and recommended splitting the overall financing into a $15,000,000 sale this fall and a second sale of roughly $22.5 million in early 2027.

The split, Hart said, is intended to match funding to near-term construction needs and to avoid borrowing for later design-and-bid stages. "If interest rates stayed exactly the same today as they are in 18 months from now, you're gonna save $1,800,000 by splitting this into two," Hart told the board. He also noted the district will seek state credit enhancement to lower interest costs and that the abatement portion is structured as a five-year component of the financing.

The district and its financial advisors presented estimated impacts to taxpayers: the district's $36.2 million proposal for indoor-air-quality projects paid over 20 years would increase property taxes on a median home by about $214 annually; the five-year tax-abatement bonds for parking-lot work would add about $19 annually, for a combined total increase of about $234 per year ($19.50/month was described in the presentation as roughly $19.19). Hart said the abatement project cost is estimated at $1,141,000 and that the $1,375,000 figure includes an allocation for interest and is a not-to-exceed amount.

Superintendent Anderson and facilities staff described the phase-1 parking projects as targeting a lower lot frequently used by high-school students, a quad/field lot near the maintenance building, and an eastbound sidewalk with accessibility improvements. The presenters said the parking-lot work would be paid from abatement proceeds and does not come from general operating funds.

During the public hearing, a resident who identified herself as Melinda spoke in favor of the abatement, saying the financing plan "was well thought out" and that the parking-lot conditions pose safety concerns for students and the public.

The board voted to approve the resolution establishing the abatement and to authorize up to $15,000,000 in bond issuance under specified parameters (maximum interest not to exceed 5.5 percent and bonds not to exceed $15,000,000 for the first sale). The district was told bond proceeds would be available in mid-November if the schedule is followed; levy certification and the first appearance of the tax change on taxpayers' bills would follow statutory certification steps in September and December and show on taxes payable in 2026, the presentation said.

The presentation also noted risks: interest-rate changes could raise the cost of the delayed second sale and issuing two bond series increases transaction costs (Hart estimated roughly $90,000 in additional issuance costs). The board resolution gives district officials authority to execute bond documents within the parameters; if the parameters are exceeded, the board must ratify any changed terms at a subsequent meeting.

The motion carried unanimously on a voice/roll-call format recorded by the board as 7–0.