The plan's total cost is $14.84 million, which will be paid using a 20-year bond. If voters approve the referendum, the district will follow the North Dakota Century Code for public bidding on the project. The district will also apply for a State School Construction Loan at a 2% interest rate, which could result in a lower project cost and result in taxpayer savings.

If approved by voters, a home in the district valued at $100,000 would see a monthly property tax increase of $19.22 starting in 2025. Agricultural land valued at $914 would see an estimated tax increase of $2.34 per year beginning in 2025. To see the estimated tax impact on your property, see the tax impact table here.

The district’s financial advisor, PFM Financial Advisors, helped to create a tax impact calculator for district residents to understand their potential tax impact if the proposed bond is approved. To utilize the tax impact calculator, please reference your tax statements to find the True and Full Value of your property and download the spreadsheet here. If you would like help to calculate your tax impact or have questions, please contact Superintendent Anna Sell at 701-742-3204.

The district’s financial advisor, PFM Financial Advisors, helped to create a tax impact calculator for district residents to understand their potential tax impact if the proposed bond is approved. View the tax calculator on the Cost page here. To utilize the tax impact calculator, please reference your tax statements to find the True and Full Value of your property.

If you would like help to calculate your tax impact or have questions, please contact Business Manager Shannon Jepson at 701-742-3234.

If the referendum is approved by voters this March, the district will have the opportunity to apply for a State School Construction Loan at a 2% interest rate. The process to obtain these funds is competitive, and the application deadline is March 31, 2024. Funds awarded through this loan would lower the overall cost of the investment plan, resulting in taxpayer savings.

If voters approve the referendum, the district will use the funding to invest in critically needed infrastructure updates and repairs throughout our school building. This would include:

• Replacing deteriorating and broken heating, ventilation, and air conditioning (HVAC), indoor air quality, and window systems to ensure proper air quality, temperature control, and energy efficiency.

• Providing new, single-stall ADA-compliant bathrooms on the second and third floors of the high school.

• Repairing and updating infrastructure, electrical, plumbing, and food storage systems in the kitchen and replacing 50+-year-old appliances that can no longer be repaired

• Repairing immediate issues with underground sewer pipes and expanding the lifespan of the infrastructure.

The existing HVAC system serving the three-story high school and both gymnasiums has exceeded its life expectancy and is in need of complete replacement. Some components range anywhere from 45 to 100 years of age. Currently, we do not have a chiller that provides air conditioning to our high school. The proposed HVAC budget estimate includes the cost of converting the existing two-pipe HVAC system throughout the high school building and gymnasiums to a four-pipe HVAC system, air handling units, boiler, chiller, pumps, digital controls with individual classroom control, ductwork distribution, ceiling, LED lights, fire protection, electrical updates to accommodate the new system, contingency, inflation, commissioning, and all professional fees.

At the end of the 2021-2022 school year, Oakes Public School had approximately $550,000 ESSER dollars to help combat student learning loss. The school board decided to use these dollars to pay teacher wages. Fortunately, the use of these dollars for that purpose alleviated general fund dollars to allow our district to help pay for our science lab floor project. This project cost approximately $700,000. We do not have any remaining ESSER dollars to use for a building project; per statute, we are not allowed to use them for that purpose.

Fortunately, our district has received grant funds in the past few years. These dollars have been used to replace outdated lighting, purchase additional buses, and pay for professional development courses for our teachers. Unfortunately, there are no available grants to address the district’s most critical facility needs, and historically, grant opportunities for projects of this type and magnitude are not available. However, we are continuously looking for alternative funding options with the help of our K-12 planning and construction partner, ICS. If identified, we will take advantage of any available funds to help invest in facility improvements.

The only funding option available to address the proposed project is a voter-approved referendum, which our district is pursuing on Thursday, March 14. If it is successful, the district will borrow dollars, called General Obligation Bonds, at the current market rate. Currently, interest is approximately 4% - 5%.

However, there is an opportunity for public schools to borrow from a North Dakota State Legislature fund at a 2% interest rate. The process to obtain these funds is competitive, with a deadline of March 31, and the maximum amount that can be borrowed is $15 million. If voters approve the proposed plan prior to the deadline, it is the district's intent to apply for the maximum amount of funds from the North Dakota State Legislature.

The 20 mills, approximately $445,000, levied for our Building Fund must, according to the ND Century Code, be used each year to provide dollars for the repair or improvement of our district buildings. Currently, approximately $222,000 of the Building Fund is allocated to the yearly payment for the 2015 Central Office Project. The district also uses these funds to pay for yearly general building maintenance budgeted around $100,000 per year. Any expenses for larger repairs or improvements of our buildings beyond the Building Fund dollars are transferred from the General Fund.

Spending taxpayer dollars wisely is important to our school board and administration. The maximum amount of mills that a North Dakota school district can levy is 105 mills. From 2013-2021, Oakes Public School District did not seek more than 90 mills from its taxpayers. In 2022, it became necessary to seek 91.05 mills to help fund, in part, the increasing costs for our yearly deferred maintenance projects across our building. This does not allow the district to address the larger deferred maintenance needs identified in our long-range facility planning process, such as our high school’s HVAC needs.

If the district decides to move forward with a project, and funding is approved, the district will follow the ND Century Code for publicly bidding the project. If bids come in lower than estimated, and the project costs less than projected, the remaining funds can be returned back to local residents, resulting in tax savings.

Over the past three fiscal years, Oakes Public School has received $388,000 to $443,000 from the building fund tax levy. Over those same three years, we have paid, on average, $218,000 in both the interest and principal for the 2014 refinancing of the 2008 gym addition and the 2015 bond sale related to our Central Office addition. The remaining expenses have varied from $193,000 to $672,000. Within those years, there were approximately $116,000 in track repairs, $235,000 in sewer repairs, and $743,000 in science floor improvements. Any shortfalls in the building fund were supplemented by general fund dollars, and any general maintenance expenses were also paid by the general fund.

The current year’s budget for building funds includes approximately a $207,330.00 bond payment and approximately $559,052.00 for general building maintenance and the remainder of the science floor project.

If the referendum passes, the construction management firm will use various tools to ensure the project is completed within the approved budget and district expectations. By statute, a bond referendum sets the maximum amount of funds that can be used to implement the proposed project. Once a referendum is approved by local voters, the budget is firmly set for construction and cannot be increased or overspent.

The Primary Residence Credit (PRC) was established during the 2023 Legislative Session under House Bill 1158. The credit provides all North Dakota homeowners with the option to apply for a state property tax credit through the North Dakota Office of State Tax Commissioner. Homeowners with an approved application may receive up to a $500 credit against their 2024 and 2025 property tax obligation. To be eligible for the credit, you must own a home (house, mobile home, townhome, duplex, or condo) in North Dakota and reside in it as your primary residence. There are no age restrictions or income limitations for this credit. Only one Primary Residence Credit is available per household. Learn more here.

The proposed $14.84 million bond referendum, if approved by voters, will result in an estimated additional millage of 51.24 mills. This is equal to $51.24 on each $1,000 of taxable valuation for the first taxable year. The additional millage rate is based on the taxable valuation provided by Dickey County.