A COMMUNITY-FUNDED PLAN FOR OUR SCHOOLS
The community task force worked hard to create a proposed referendum that aligns with the priorities of our community, provides the best value for our residents, and will allow us to deliver the high-quality learning environment needed for our students.
If approved on Tuesday, May 12, the proposed plan would result in a tax increase of $14/month for the owner of an average-value home in the Princeton Public School district (approx. $350,000). The tax increase will begin in 2027 and the additional revenue will go directly to the proposed projects.
Your tax impact is dependent upon the value of your property. You can instantly determine the projected tax impact of the referendum on your property using our referendum tax calculator.
If approved, the tech levy would remain in place for 10 years. The building bond would remain in place for 20 years.
The district can keep the estimated tax increase low ($14/mo for average value home) by using a wraparound financing model.
This means the district would start to pay for new improvements while finishing payments on earlier school bonds. Many Minnesota school districts use this approach because it helps keep school taxes steadier over time while still allowing districts to make needed improvements.
A Financing Plan That Helps Keep Taxes Lower
Here is how the financing plan works:
Today:
The district is paying off the 2014 bonds that helped build the new primary school. There are about seven years left on those payments.
If voters approve the plan:
The district begins paying for the new improvements while finishing the 2014 bonds.
After the 2014 bonds are paid off:
Those tax dollars will shift to paying for the new Roaring Forward bonds, helping keep the increase around $14 per month for an average-value home instead of creating a larger jump in school taxes.
Ways taxpayers can reduce their tax impact if the referendum is approved
Minnesota offers multiple tax credits and deferrals that can reduce the tax impact of an approved referendum, such as the Minnesota Homestead Credit Refund, Special Property Tax Refund, and the Senior Citizen Property Tax Deferral. These credits and deferrals are subject to additional qualifications based on age, income, and tax burden.
All agricultural land will receive an automatic 70% tax credit through Minnesota’s Ag2School Tax Credit program. This credit applies to all agricultural land except the house, garage, and one acre surrounding an agricultural homestead. This is not a tax deduction – it is an automatic dollar-for-dollar credit, with no application required. This credit will pay about 8% of the project’s cost, if approved by voters.
You may be eligible for ways to reduce the cost of the referendum.
