The Cost and Tax Impact
A Community Investment in Our Schools
The district is requesting an amount it believes is necessary to sustain a high-quality education and unlock new state funding while keeping the tax impact as low as possible for our community.
If the operating referendum is approved by voters, the investment would be supported by a property tax increase that would take effect in 2027. Meanwhile, the school board will reduce other local levies if the new operating levy is approved.
Your individual tax impact will depend on the value of the property you own. For example, the estimated tax increase for a median value home of $315,000 would be about $20 per month.
You can calculate the estimated tax impact on your specific property using our tax calculator.
Our goal is to invest responsibly. Underwood Public School’s approach will balance quality and affordability, ensuring that improvements meet the district’s needs while responsibly managing tax dollars.
Why operating levies bring new state aid
An operating levy is a voter-approved funding source that helps pay for the daily costs of running schools. This can include teachers, support staff, programs, classroom materials, activities, transportation and other ongoing education needs.
This proposal also gives the district a chance to qualify for a new state aid program, reducing the total tax impact on residents and businesses. Minnesota’s Seasonal Recreation Property Tax Base Replacement Aid program is designed to level the playing field for districts like ours with a large amount of seasonal recreational property, like vacation homes and cabins. Our district must have a voter approved operating levy to receive to bring these state dollars back home for our students.
