Financing

The construction and operations of the Fergus Falls Community Arena will be evaluated in conjunction with the proposed facility design and the maximum approved project budget of $8.46 million (see Projected Construction Costs).  Community organizations are responsible for raising $3 million. The Capital Campaign began November 1, 2009 and the $3 million was met by summer 2010. The fundraising committee continues to fundraise to pay for additional arena features.

A contribution from Independent School District 544 in donated land and chiller use is valued at $1.6 of the total project estimate.   

If property taxes are used to pay off the bonds, the schedule below indicates the increase in property taxes. This would be for 20 years.

Home Value Annual Tax Increase

$125,000 $44

$200,000 $70

Commercial Property Annual Tax Increase

$500,000 $323

$1,000,000 $672

NOTE: on November 2nd voters approved a 1/2% sales tax as an alternative to property taxes. The tax needs to be approved by the legislature before it would go into effect. A sales tax would pay off the bonds in approximately 4-5 years. This is more equitable in that people from outside of Fergus Falls who use the arena would be assisting with the payoff.