Two referendum questions are being considered by the Prior Lake-Savage Area School District for inclusion on the November ballot.
Board discussion at the May 4 meeting included revoking the current levy that is set to expire in 2028 and replacing it with proposed funding if approved by voters in November, thus eliminating homeowners being required to pay for two levies at the same time.
One option that could be considered would last for a 10-year period with an inflationary increase clause. Yet to be determined is the amount that will be requested of residents to fund general operating expenses. A second ballot question could ask for approval of additional funding for capital projects.
The local school district has cut more than $12 million from its operating budget in the past few years after voters overwhelmingly rejected a new referendum proposed in 2024. Cuts have resulted in position eliminations, larger class sizes, selling of the District Services Center and revising school attendance boundaries. The district has also seen a decline in enrollment in recent years, which is expected to continue and impacts the amount of funding received from the state.
Board members have not yet made a final decision on the amounts that may be proposed. Ehlers Public Finance Advisors has been hired as a consultant and provided varying estimates that would be incurred by homeowners if the levy is passed. During the board meeting, a lengthy discussion ensued that outlined board members’ projections on what cost increases residents would support.
Monthly figures proposed for the average home value of $525,000 within the district ranged from $15 to $67. Dollar values that fell between the high and low figures drew the most favorable responses. Most board members said they favored a levy amount that would fall in the range of $32 to $46 per month.
Superintendent Michael Thomas polled the board on their top funding preferences, adding that approving a levy that produced $15 per month would only replace revenue lost due to declining enrollment numbers. He added that an approved levy that raised an average of $32 per household each month would produce approximately $7 million in additional funding each year. That number increased to $10 million per year if the per-month fee was raised to $46, with $15 million raised if the average per-household amount was increased to $67 each month.
While no decisions were made by the board that night, the option to consider funding that would be “stepped up” or increased by a pre-determined amount once during the 10-year levy period, was also discussed. The district has not implemented that option in past referendums. Board members Amy Bullyan, Jessica Mason, Charles Johnson and Lisa Atkinson said they preferred a fixed rate due to confusion a variable rate may cause with voters. Mary Frantz, Jessica Olstad and Dustin Smith were agreeable to the stepped-up proposal.
The second levy discussed by the board pertained to funding of capital projects and would bring in approximately $3.8 million each year over a 10-year period. Funds would be used for improving school facilities, safety and security improvements, renovations, technology equipment and other major projects of longer-term benefit. If approved, it would replace the current levy proposed to be revoked if new levy options are approved.
Finalizing vote options will be a priority for the board in coming months since calling for a referendum vote would need to be made by Aug. 11, if it is to be considered by voters on Nov. 3.
Lisa Rider, executive director of business services for the district, said that should the referendum vote not pass, the board will have the option to renew the existing levy in June of 2027.
Editor’s note: The original story regarding the Prior Lake-Savage School Board’s discussion on referendum options incorrectly stated the board had approved referendum questions be included on the November ballot. At this stage, there has only been discussion, but no action by way of formal vote. The board will continue discussion to finalize resolution language and direction to proceed, followed by board action. At this point, there has only been discussion, but no formal vote. We apologize for the error.
