TAX IMPACT

Estimated tax impact of the referendum amount provided by District financial consultant Baird Financial Advisors.

What will this cost me?

If the referendum question totaling $39.99 million is approved, the tax increase for a $300,000 home would be approximately, on average, $5.69 per month for taxes payable in 2027. The cost depends on your property type, location, and value. The district is timing this bond with expiring debt so new payments take the place of previous payments. This helps keep overall taxes more level and avoids sharp increases from year to year.

The property tax rate increase, as a result of this referendum, is consistent across all property in the school district regardless of which previous district your property is in (ISD 394 Mongomery-Lonsdale / ISD 392 Le Center)

Quick View Tax Impact Tables

To find your exact impact, use the online tax calculator below.

2027 Residential
Tax Impact

2027 Commercial/Industrial
Tax Impact

2027 Agricultural
Tax Impact

Homestead

(average value per acre of land and buildings)

Non-Homestead

(average value per acre of land and buildings)

Why do the numbers look different between Montgomery-Lonsdale and Le Center?

This new referendum cost is applied equally across the district, however:

When the two districts merged, each brought in pre-existing debt.
By law, that older debt is still being paid off separately, creating temporary differences in total tax statements.
Those differences are scheduled to end in 2035, when the older debt is fully retired.
After 2035, tax rates for both areas will equalize.

Tax Calculator

Online Tax Calculator

To use the online calculator you will need your Parcel Identification Number from your County. Follow the link below to learn more.

CLICK HERE to view the tax impact calculator

Do You Own Ag Land?

The Ag2School Tax Credit will result in the State of Minnesota paying approximately 20% of the district’s debt payments for this bond. This includes about $7,998,000 of the $39,990,000 bond amount.

MN Ag2School Tax Credit

If you own agricultural land, the State of Minnesota would pay for a portion of the total Referendum project through the Ag2School Tax Credit program.
If the TCU School District referendum passes on May 12, 2026, agricultural landowners will see a 70% credit on their property tax bill related to the impact of the referendum.
This tax credit program is not a tax deduction – it is an automatic dollar-for-dollar credit with no application required.
The Ag2School Tax Credit bill was passed through bipartisan support and is in State Statute. The program is part of the State’s forecasted budget and has no expiration date.

Who pays for the Referendum?

Learn More About this Tax Credit? (click to view)

The Ag2School Tax Credit is an automatic 70% property tax credit for owners of agricultural land. (It does not include the house, garage, and one acre surrounding the agricultural homestead.)

Who Can Participate?

The Ag2School tax program offers a 70% tax credit to all agricultural property owners including:

2a (homestead and non-homestead, agricultural land)
2b (rural vacant land)
2c (managed forest land) property except for the dwelling value of the property

What is Dwelling Value?

The home, garage, and surrounding 1 acre of land is NOT eligible for the Ag2School Tax Credit and is taxed the same as a residential home.

A win-win for farmers and rural districts.

Ag2School Tax Credit provides property tax relief to farmers while also helping rural school districts make needed improvements to their facilities — a win-win for farmers and their communities.
— Minnesota Farmers Union

More on Planning and Oversight

How are the referendum costs determined?

Right now, the district is sharing cost estimates, not actual construction bids. That’s because designs aren’t finalized until funding is approved. Once that happens, contractors submit official bids, and the school board chooses the vendors–just like with most public projects.

Cost estimates are based on current market data—including projected inflation and construction trends for 2027
If voters approve the referendum, final designs are completed
Contractors submit bids based on the approved final designs
The school board selects vendors following state bidding laws
This process isn’t led by a company or an outside group. Every decision stays local, with the school boards overseeing all spending, contracts, and timelines. All work will be publicly bid to ensure fairness and transparency. It’s a step-by-step process built to protect taxpayers and provide full accountability.

How do we know the money will be spent wisely?

By law, funds can only be used for the specific projects listed on the ballot—nothing else.
SitelogIQ, the district's professional services firm, was chosen to provide professional services including engineering, architecture, commissioning, and project management—all which are included in their fee.
The school district will go to bid on all equipment and labor.
The school board, not SitelogIQ, oversees all spending, contracts, and purchases, ensuring local control. Any cost savings remain with the district, and no funds can be used for salaries, benefits, or daily operations.
A competitive bidding process ensures efficient use of taxpayer dollars, and regular public updates will maintain accountability.

What happens if money is left over after the projects are done?

State law requires any remaining bond funds to be used only for:

1. Other eligible facility needs already on the district’s long-term list, or
2. Paying down debt to save on long-term costs.
  - Funds cannot be used for salaries, programs, or non-capital purposes. All decisions would go through the school board and be shared with the public.

Can I see the state’s review of the plan?

Yes. The Minnesota Department of Education issued a favorable Review and Comment. A summary is available upon request from the district office by emailing kbabcock@tcu2905.us.

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