The meeting’s focal point was the certification of the 2025 payable 2026 tax levy, with a proposed amount of $10,092,324.70. This significant increase was primarily due to successful referendums that brought an additional $1.1 million in voter-approved general education funds, equating to $633 per pupil, and $250,000 annually from a capital project referendum. These funds are expected to enhance educational offerings and infrastructure within the district. The presenter clarified that the adjustments to the reemployment or unemployment levy were necessary to align costs with levies accurately and were not indicative of rising expenses. These adjustments aim to stabilize the district’s financial outlook by minimizing fluctuations in the levies.

During the truth and taxation segment, required by state law, the presenter outlined Minnesota’s school funding mechanisms, emphasizing that state aid forms the majority of the district’s revenue, with property taxes contributing around 15%. The detailed presentation explained how funds are distributed across various budget categories, with 38% dedicated to regular instruction. The complexities of the tax levy process were also addressed, noting the timeline from data collection to final approval, with the proposed levy reflecting adjustments for enrollment changes and a Tax Increment Financing (TIF) descertification.

The board also unanimously accepted the fiscal year 2425 audit, presented by CFO Bridget Peterson and Ryan Schmidt from Schlenner. Schmidt confirmed that the district received an unmodified, or clean, opinion on its financial statements, a desirable outcome indicating accurate and solid financial reporting. The audit highlighted a new accounting standard requiring the recording of additional liabilities for compensated absences, though it did not alter existing policies or practices. The audit process was reported to have proceeded smoothly, with no significant adjustments needed and compliance checks with Minnesota statutes met without issues.

Further discussions delved into financial matters, focusing on contracting and bidding processes. There was concern over the district’s use of quotes instead of a formal sealed bidding process for contracts exceeding $175,000, as mandated. The requirement for performance and payment bonds, even when utilizing state contracts, was confirmed to protect both district and contractors. The meeting also reviewed enrollment trends, which showed a slight increase of six students from FY24 to FY25, and analyzed the general fund’s revenues and expenditures from fiscal years 2021 to 2025. The district saw revenues exceed budget by approximately $836,000, with expenditures also surpassing budgeted amounts by about $553,000, resulting in an actual increase of around $818,000 for the year.

In addition to financial discussions, the board addressed operational updates from the district’s schools. Middle school updates included the implementation of a mental health curriculum for grades four through twelve in the following year. At the high school, winter activities were thriving, and staff meetings focused on aligning grading procedures across grades five through twelve.

The board expressed gratitude for community contributions, highlighting a donation from the Handover Athletic Association providing 1,000 “guardian caps” for the football team to enhance safety. A resolution was passed to approve an executive assistant’s access to the education identity and access management site for operational continuity.

The meeting concluded with discussions on board committee updates and negotiations with the education union. Negotiations resulted in a contract reflecting a total increase of 10.98% over two years for teacher salaries, described as crucial for fair compensation. Acknowledgment of the need for ongoing dialogue around educational funding and levy fairness was noted, with an emphasis on legislative strategies for achieving educational equalization credits.