A focal point of the meeting was the substantial increase in insurance costs, with the board approving a renewal quote from Fine Insurance. The insurance market’s “hard” conditions have led to a projected 13 to 14 percent rise in property insurance costs, alongside a 47% debit on the school’s workers’ compensation policy due to its claims history. The increased deductibles, particularly a $680,000 deductible for wind and hail damage, were a subject of concern for the board. These changes reflect broader market trends, as confirmed by Mr. Young, who provided insights into the insurance landscape during the meeting. While comparisons were made to previous years, the board acknowledged the difficulty in securing competitive quotes, as several insurers declined to participate.

The board explored potential strategies to mitigate these rising costs, including enhancing fire protection measures, though implementation complexities were noted. Questions arose about recent property upgrades’ reflection in insurance policies, with current builder’s risk coverage in place for ongoing projects. Ultimately, the board unanimously approved the insurance renewal, recognizing the necessity of adapting to evolving market conditions.

Parallel to the insurance discussions, the board examined the preliminary budget for the upcoming school year, a critical step in meeting statutory requirements by July 1st. The budget was crafted with a conservative approach to enrollment projections, pegging district-wide student numbers at 803 based on the last day of school attendance. Legislative outcomes have influenced budgetary considerations, including a general education aid increase and cuts in miscellaneous tax revenue and library aid funding.

Despite financial challenges, the general fund is projected to maintain a balanced budget, with a slight positive margin. However, anticipated interest earnings in the fall may improve this figure. Notably, the board discussed the use of restricted fund balances for specific expenditures related to safe schools and compliance with new mandates, highlighting the need for vigilant monitoring throughout the school year.

Further discussion centered on the sustainability of a recent significant funding increase, particularly concerning its potential volatility in future years. To manage these uncertainties, some funds have been allocated for immediate needs, while others are safeguarded in a fund balance—a practice maintained over the past two years. The board remains mindful of risks associated with enrollment numbers and the legislative environment, especially as negotiations with the teachers’ union are pending.

Transportation funding emerged as another area of concern, with the state reducing special education transportation aid by 5%, impacting revenue. The budget allocates $175,000 for fuel and $4,000 for a potential vehicle purchase, subject to adjustment based on transportation route assessments, particularly for special education students. Additionally, a shortfall in the capital expenditure fund due to telecommunications aid cuts was noted, as were challenges with the ELC lease, requiring levy system adjustments over the next two years.

The strategic planning segment of the meeting focused on four draft goals designed to enhance academic achievement and student engagement. The first goal aims to identify and address gaps in the current curriculum. The second goal emphasizes robust college and career options, with improved communication to families about available pathways. A third goal involves streamlining communication tools and systems to keep stakeholders informed without overwhelming them. Lastly, the fourth goal focuses on fostering student connection and engagement, with initial research planned to identify barriers to these objectives.

The board reviewed the annual school nurse report and awarded bids for milk and fuel supply, both receiving only one bid each. Membership in the Minnesota State High School League was approved, necessary for participation in state championships. Building leaders reported on ongoing projects, including tennis court renovations and a housing challenge grant aimed at increasing local housing options. The leadership team expressed appreciation for professional development opportunities, particularly a book study on the Multi-Tiered System of Supports (MTSS), and acknowledged the importance of accurate budgeting in assisting the board’s decision-making.