By Lexi MooreSeveral residents of the Hills-Beaver Creek school district attended Monday’s H-BC Operating Levy Referendum Meeting in the high school gymnasium. The meeting included presentations by Melissa Stirn from Ehlers & Associates and by H-BC Superintendent Dave Deragisch. It was intended to inform and answer questions residents have about the proposed referendum.Deragisch focused on the needs of the H-BC school district and the tough decisions that would need to be made if the operating levy does not pass.The school district has recognized a need for some major expenses in the future. These include the replacement of at least two buses, repairs to the high school boiler and chimney. These expenditures total almost $150,000. The proposed referendum will " … raise approximately $199,875 per year for 10 years," Deragisch said. Of that total the state of Minnesota will contribute an estimated $106,882 or 53.47 percent.If the proposed referendum fails, Deragisch said repercussions would be severe. "The face of the school we know and love will change," he said. "The programs and staff that many of you know and appreciate could be cut and/or eliminated." Some potential consequences would be longer bus routes, loss of technology in the classrooms, reduction in offered classes, increased class size, loss of staff positions, elimination of many school programs and major increases to school fees.Stirn discussed Minnesota property tax refund programs that apply to Minnesota residents that may increase if the referendum levy passes.The Minnesota property tax refund, Circuit Breaker, is available to all owners of residential and agricultural homestead property.The refund on agricultural property is based on the taxes paid on the house, garage and one acre.A similar credit is available to renters, based on estimated rent attributed to property taxes. The refund is based on total property taxes and income. "For 2003 taxes, the annual adjusted gross income must be less than $83,390 for homeowners and $44,990 for renters," Stirn said.The maximum refund received is $1,560 for homeowners and $1,280 for renters. Stirn emphasized that, if residents pay additional taxes associated with a referendum levy, their refund may increase by as much as 80 percent of the additional taxes.The Targeted Homeowners’ Property Tax Refund is available for all homestead properties with a gross property tax increase of at least 12 percent and $100 over the prior year’s taxes. This refund is especially beneficial in the first year of a new referendum because many property owners will qualify due to the relatively large tax increase.To determine eligibility and refund amounts for either refund, taxpayers should fill out state tax form M1-PR. If residents have additional questions regarding tax refunds and the proposed operating levy, they can call 1-800-552-1171 and ask to speak with someone on the Education Team.