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Facility planning begins as school debt retires

By
Mavis Fodness

Luverne School District will pay off its elementary school construction debt in December of 2017, prompting long-range planning for other facility projects.
In a Thursday evening workshop school board members listened to experts in school finance and educational facility planning as they decide the district’s next steps.
In little more than a year the $12.5 million bond levy to build the elementary school will be paid in full.
“This presents a window where the addition of a levy for capital or other purposes would not increase taxes,” stated Greg Crowe with public finance firm Ehlers Inc. of Roseville.
The levy-dedicated debt payment garnered about $950,000 annually in local property taxes.
Crowe said with the debt payments complete, the district could “renew” the bond levy at the same or at a lesser dollar amount for future facility improvements.
Under the current levy property valued at $100,000 is levied $45 a year for the referendum, he said.
The district would need a new long-term facility plan to know where resources should be directed.
Mike Hubbard and Dave Bergeron with Foster, Jacobs & Johnson, a design company with an office in Sioux Falls, said his firm could facilitate listening sessions with the community and administrators and use the information to prioritize needs within the district.
Cost would be $20,000 to $30,000 for those consulting services.
Board members did not make any formal decisions at Thursday’s work session. Another work session is scheduled for Sept. 8.

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