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      The Northland School Board spent much of its Wednesday, July 8 meeting discussing a new state funding opportunity that could provide the district with hundreds of thousands of dollars in additional revenue while keeping local property taxes essentially unchanged.

   PTMA Financial Solutions consultant Bill Menozzi presented information on Minnesota’s new Seasonal Tax Base Replacement Aid (STBRA) program, legislation approved earlier this year that benefits school districts with large amounts of seasonal recreational property.

   According to Menozzi, Northland is one of only nine school districts in Minnesota eligible for the program’s maximum benefit because more than half of the district’s tax base is made up of seasonal property.

   The new law allows qualifying districts with voter-approved operating referendums to receive state aid that replaces a portion of local property tax revenue. Since Northland currently does not have an operating referendum, the district is unable to receive those additional state dollars.

   Menozzi explained that if voters were to approve an operating referendum while the district simultaneously reduced its existing Local Optional Revenue (LOR) and Equity levies, Northland could receive approximately $310,000 in additional annual revenue without increasing taxes for most property owners.

   “This is really about bringing money back to the district,” Menozzi told the board. “The goal is to receive additional state aid while keeping taxes neutral.”

   Board members spent considerable time discussing how such a proposal would need to be explained to voters.

   Although the district’s plan would be to reduce existing levies so taxpayers would see little or no tax increase, state law requires referendum ballots to include language stating that a “yes” vote authorizes a property tax increase. Board members agreed that explaining the proposal clearly would be critical.

   “I think communication would have to be the biggest thing,” board member Tyler Seifert said. “People need to understand we’re getting some of the cabin owners’ tax money back from the state. That’s where the money is coming from.”

   The board also discussed whether it might be possible to structure the proposal so homeowners would actually see a small decrease in school taxes rather than simply remaining tax neutral. Menozzi said he would prepare several funding scenarios for the board to review, including options that could show a slight tax decrease for homeowners while still increasing district revenue.

   During the discussion, Menozzi explained that the proposed operating referendum could be written for up to 20 years, providing long-term financial stability for the district. However, board members questioned what would happen if future school boards chose not to continue reducing the Local Optional Revenue and Equity levies after voters approved the referendum.

   Menozzi acknowledged that concern, explaining that the current board can only commit to its own intentions. He said the election resolution and informational materials can state that it is the current board’s intent to reduce those levies if the referendum is approved, but future elected boards could ultimately make different decisions.

One board member said that possibility could concern voters, noting that residents may worry a future board could keep the referendum in place while restoring the other levies, resulting in higher taxes. Menozzi responded that while such a move would be possible under a future board, the current proposal is based on the existing board’s commitment to keeping the plan tax neutral.

   Northland’s current school tax levy remains among the lowest in the area. According to the presentation, the owner of a $350,000 home currently pays about $303 annually in school district taxes, well below the statewide average.

   Business Manager Julie Erpelding said the district continues to face increasing costs and tight budgets. “I just feel like costs are going up and our budget is tight,” Erpelding said. “At some point we’re going to have to do it.”

   The board also learned that, should it move forward with a referendum, the district would need to approve an election resolution by Aug. 11 in order to place the question on the November ballot. Menozzi estimated consulting services through the election would cost $3,000, with an optional $1,500 online tax calculator that would allow residents to estimate the proposal’s impact on their individual property taxes.

   The board reached a consensus to hold a special meeting on Wednesday, July 22, where members will review additional financial scenarios before deciding whether to pursue an operating referendum this fall.

   In other Board action:

   • Accepted a $1,000 donation from Marilyn and Candace Lilyquist in memory of Rusty Lilyquist for the trap team.

   • Accepted bids for the following for the 2026-2027 school year: fuel oil from Best Oil; propane from Ferrellgas; snow removal at Remer and Longville bus garage from EPIC LLC and milk from Sandstrom’s Distributing.

   • Approved the 2026-2027 Teacher, Non-Licensed and Student and Family handbooks.

   • Approved resolutions relating to the election of school board members and calling for school district general election and the 10 year LTFM plan.

   • Approved the agreements between Northland Community Schools and Deer River Public Schools for shared services of School Psychologist, Raina Heruth; updated Law Enforcement Agreement between Cass County Sheriff’s Department and Northland Community Schools and PSEO/CIS services between Central Lakes College and Northland Community Schools.

   • Approved the termination of Jessie Hancock effective June 11.

   • Approved the hire of Baylie Cummings as High School Special Eduction Teacher and Amy Lego as Bus Driver.

   The board has scheduled the following meetings: a special meeting, Wed., July 22 at 5:30 p.m. and the regular meeting, Wed., Aug. 12 at 5:30 p.m. All meetings are held at Northland High School.

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