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).  Once bid, the project may come in below estimates; the City's share of the total project ($3.86 million) will realize these cost savings. The City has also made a Capital Appropriates Request from the Minnesota Legislature in 2010 and will work diligently toward realizing as much of the $3.86 million requested as possible. Community organizations are responsible for raising $3 million. The Capital Campaign began November 1, 2009 and was already at the $2.8 million mark by April 19, 2010. 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

The City Council is also considerig a 1/2% sales tax as an alternative to property taxes. 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.