Minnetonka School Board Reviews Policy Changes and Financial Challenges
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Meeting Type:
School Board
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Meeting Date:
08/22/2024
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Recording Published:
08/22/2024
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Duration:
75 Minutes
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State:
Minnesota
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County:
Hennepin County
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Towns:
Chanhassen, Deephaven, Eden Prairie, Excelsior, Greenwood, Minnetonka, Minnetrista, Orono, Shorewood, Tonka Bay, Victoria, Woodland
- Meeting Overview:
The most recent Minnetonka School Board meeting focused on significant policy updates driven by legislative changes and the district’s financial challenges, including a projected $17.5 million budget shortfall over the next five years.
The meeting commenced with an in-depth review of policy changes, particularly the consolidation of attendance policies 502 and 503 into a single comprehensive document. This move aimed to create consistency across the elementary, middle, and high school levels. Angie Flowers and Dr. Amy Leo highlighted that the new policy now describes attendance as a shared responsibility among students, parents, teachers, and administrators. The attendance policy includes provisions for excused and unexcused absences, reflecting recent legislative updates concerning the consequences of excessive absences. Although a juvenile court petition remains an available tool, it is rarely exercised, with the district preferring to support families in ensuring students return to school.
The discipline policy, policy 506, also underwent extensive revisions. These changes include non-exclusionary practices prior to suspension and the use of force in situations where a student poses a danger to themselves. The policy clarifies that while the district will assist in arranging mental health resources, the costs would fall on parents or guardians. This raised concerns about the availability of additional support for families who may not afford such services. Board members questioned the clarity of the policies and the practical implications for parents, with Flowers responding that while some options would not align perfectly, they would be streamlined to enhance clarity.
The board then shifted its attention to the financial outlook of the district. Superintendent David Law highlighted the projected shortfall of $5.5 million for the 2025-2026 school year, building on previous reductions. Discussions revealed a potential cumulative reduction of $17.5 million over the next five years if the revenue situation does not improve. An initial proposal was made to increase the operating referendum cap by $1,000, allowing the district to request additional resources from the public to compensate for a shortfall in state aid and inflation. The district’s current operating referendum cap stands at $2,263 for the fiscal year 2024, and the proposed increase would generate approximately $12 million annually.
A separate tier of local optional revenue was discussed, with a potential increase of $360 per adjusted pupil unit. This increase aims to address the shortfall in basic formula funding, potentially providing an additional $4.5 million annually. The need for legislative advocacy to secure these additional revenues was emphasized, with a focus on the critical upcoming legislative session in 2025.
Special education funding also surfaced, with a proposal to increase the special education cross-subsidy by an additional 10%, potentially generating an additional $800,000. The district’s funding from the state has been historically insufficient, leading to a deficit of about $18 million compared to the average school district.
Additionally, the board reviewed the district’s energy initiatives. The district has focused on sustainability and green energy initiatives over the past 20 years, including the installation of energy-efficient lighting and enhancements to insulation. The district’s participation in solar gardens is a key component, allowing the district to receive credits that help offset electric costs. Despite a 43% increase in energy costs over the past decade, the district has managed to stabilize electrical usage even with an increase in student enrollment and building expansions.
A renewable connect contract with Excel Energy enables the district to source electricity entirely from wind and solar, achieving price certainty over the next decade. The district is an anchor tenant in six solar gardens, with a seventh under construction, and has accrued credits totaling $1,484,000 from its solar garden initiatives over the last four fiscal years. The board discussed the potential for increased public awareness regarding its solar initiatives.
The discussion then turned to the district’s long-term facility and maintenance planning, with a focus on financial aspects. The district has been managing a substantial amount of facility bond payments and long-term maintenance projects, with the current levy at approximately $60 million, including $12 million allocated for these purposes. The district has invested $132 million in long-term facility bonds, averaging $7.3 million over the past 18 years, aimed at ensuring the buildings remain functional for the next 50 to 60 years.
The financial discussion included specific figures detailing outstanding debt: $179.2 million in total, with $155 million directly payable through property taxes, and $24.2 million from alternative sources. The impact of residential property on the district’s wealth was underscored, with 92% of property wealth categorized as residential or agricultural. The ongoing bond payments and their associated rates were outlined, noting a gradual reduction in rates and potential for future refunding opportunities if interest rates decline.
Inquiries were made regarding the debt burden, specifically comparing the current debt payment ratio to total levy ratios, which have decreased from approximately 32% in 2007 to about 20% now. The board acknowledged the importance of maintaining transparency with the community regarding its initiatives and financial health, emphasizing the critical nature of these discussions in shaping future decisions.
School Board Officials:
Meghan Selinger, Patrick Lee-O’Halloran, Dan Olson, Chris Vitale, Sally Browne, Kemerie Foss, Dr. Mike Remucal, David Law (Superintendent and Ex-Officio Member)
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Meeting Type:
School Board
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Meeting Date:
08/22/2024
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Recording Published:
08/22/2024
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Duration:
75 Minutes
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Notability Score:
Routine
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State:
Minnesota
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County:
Hennepin County
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Towns:
Chanhassen, Deephaven, Eden Prairie, Excelsior, Greenwood, Minnetonka, Minnetrista, Orono, Shorewood, Tonka Bay, Victoria, Woodland
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