Pequot Lakes board votes to call special election for operating referendum tied to seasonal tax aid

The Pequot Lakes Public Schools board voted unanimously to approve a resolution calling a special election to place an operating referendum on the November ballot that would use newly available seasonal tax-based replacement aid to shift state-paid seasonal property levy revenue back to the district.

Board Chair (speaker 1) opened discussion after a motion by Pamela and a second by Ross. Superintendent Kurt Stumpf (speaker 2) handed the meeting to consultant Bill Mazzione of PTMA (speaker 5), who explained the mechanics and projected impacts on taxpayers and district revenue.

Mazzione told the board the district could under-levy its local optional revenue (LOR) and equity revenue and still ask voters to approve an operating referendum of $1,160 per pupil. He said the state's seasonal replacement aid created a formula in which the state would pick up roughly half of the referendum levy in this district and the local taxpayers the other half; if successful, the district would gain roughly $503,000 in net levy revenue and the analysis presented estimated a tax decrease of about $205 annually on a $400,000 home in one scenario and a $72 net property-tax relief example in another.

Board members pressed for detail on eligibility and timing. Mazzione confirmed districts must have at least 15% seasonal properties to qualify and that the maximum benefit allowed by law is 50% based on the district's seasonal property share. He and staff emphasized the difference between how the measure will appear on the ballot and how the district should explain the net effect to residents: by state law the ballot must indicate a property tax increase, while the district may concurrently commit to under-levying other local levies so many residential taxpayers see a net decrease.

District and consultants repeatedly warned that the required ballot language and the novelty of the program create a communications challenge. Todd Raff of Wrap Strategies (speaker 11) and Peter Leatherman of Morris Leatherman Company (speaker 4) advised creating a separate outreach channel and testing messages with residents, noting risks that voters could perceive a 'tax increase' label as misleading without clear explanation.

After extended discussion about timing, the mechanics of under-levying and how preliminary tax statements will appear before the vote, the board took a roll-call vote. The resolution passed 7'0'00, advancing the referendum to the November ballot.

The board did not set specific spending for outreach in the resolution; subsequent agenda items discussed contracting with external firms for communications and a scientific survey to guide messaging.

The board next considered contracts for outreach and polling and then moved on to other business.