Fairmont Area Schools lays out $39.4 million facilities plan; board-authorized HVAC work would precede a voter referendum for program space

Fairmont Area School Board members heard a detailed facilities‑planning update that breaks district needs into two financing tracks: roughly $17 million in board‑authorized bonds for HVAC and infrastructure work and about $22.4 million proposed for voter approval to cover educational and programmatic space.

Consultants and financial advisers told the board the planning process began in spring 2024 with assessments, space analyses and multiple work sessions with staff and the board, and that priorities fell into three categories: infrastructure/physical systems, educational and programmatic needs, and safety/security/accessibility improvements. The presenters said the proposals aim to address identified indoor‑air‑quality issues, upgrade aging systems and add program space where educationally viable.

“The process has been deliberate in identifying and quantifying needs,” an ICS representative told the board during the presentation, describing the work that led to the recommended scopes.

At the elementary school, presenters recommended replacing perimeter classroom HVAC units in the original 1954 sections to eliminate unit ventilators and remove temporary dehumidifiers, exterior repairs (caulking, tuckpointing), replacement of an original elevator and refurbishment of terrazzo and cafeteria floors. At the high school, the board reviewed a proposed fine‑arts addition to relocate band, choir, theater and orchestra spaces out of a basement; that addition would trigger a fire‑sprinkler requirement and enable enclosure of a connection between a new CTE addition and the vocational wing.

Presenters also described necessary infrastructure repairs, including sewer lines under the vocational wing and performing‑arts areas that must be replaced and require cutting and repouring concrete floors, and recommended replacing auxiliary gym flooring and remodeling locker rooms.

Ellers financial advisers Shelby McQuay and Beth (DS) explained how the district proposed to split projects between board authority (the LTFM/indoor‑air work) and a voter‑approved referendum for programmatic additions and larger space changes. Shelby McQuay identified herself at the meeting: “I’m Shelby McQuay. This is Beth DS and we’re both with Ellers and we’re financial advisers to the district.”

Advisers said the school building bond agricultural credit enacted by the state reduces the agricultural portion of debt taxes (a 70% reduction on qualifying agricultural property), and noted that roughly 25% of the overall project cost would be covered by state credits rather than local taxpayers. Using that framework, advisers presented sample tax impacts on a $200,000 property: about $107 annually attributable to the board‑authorized indoor‑air bonds and about $86 for the voter‑approved portion, for a combined increase described as a little less than $200 per year after credits.

Advisers outlined a proposed schedule in which design work on infrastructure and indoor‑air projects would begin this fall, a referendum for programmatic needs could appear on a November ballot, and heavy construction would be phased with major activity in summer 2027 and completion targeted for summer 2028, contingent on approvals and voter action.

Board members asked about sequencing, market interest rates and timeline contingencies. Advisers said the district can still issue tax‑exempt debt for the board‑authorized portion and used a planning assumption of roughly 5% interest; they described a shorter (17‑year) term for the board‑approved bond that would match project lifetimes.

The meeting record shows the board later authorized staff to submit the long‑term facilities maintenance (LTFM) plan materials for Minnesota Department of Education review and comment to start regulatory work on the LTFM component. The board also tabled a separate facilities maintenance plan appendix until the July meeting so staff can include a missing exhibit.

What happens next: if the board moves forward, district staff will complete required documentation for MDE review and, separately, prepare ballot language and outreach materials should the board ask voters to consider the referendum.