Central to the meeting was the Truth and Taxation presentation, which explained the legal requirement to openly discuss the property tax levy and upcoming budget. The proposed levy for the 2025-2026 fiscal year is set to rise by about $65,000, bringing the total to approximately $9.9 million. The presentation detailed the complex factors influencing the levy, such as legislative changes and property valuations. The board approved a preliminary levy of $117,000, which was subsequently adjusted down by around $40,000 due to updated student counts and market valuation appeals. A breakdown of the levy revealed that 44% is allocated to the general fund, 1% to community education, and 55% to debt service.

In discussing the district’s budget, it was noted that the general fund is expected to decrease by approximately $463,000, with the majority of revenue derived from state aid (67%) and property taxes (24%). The district’s property taxes exceed the state average, with 75% of expenditures in the general fund dedicated to salaries and benefits. The board was presented with a graphical analysis of expenditures.

Further financial discussion centered on tax increment financing (TIF), which remains subject to city and county decisions. The financial overview did not reflect quarterly fund balance changes or finalized audited figures. The board acknowledged Cheryl’s near 40-year service in the district office, recognizing her contributions as she retires.

The district expended over $750,000 in federal funds without any grant compliance issues. The audit revealed improvements in internal controls and accounting practices, with a recommendation to increase the capitalization policy for fixed assets from $2,500 to $10,000. The general fund budget showed a favorable variance, with a net increase of nearly $1.6 million in the fund balance for that year.

During the meeting, the board addressed the implications of Minnesota’s new paid leave law on financial projections and liabilities, noting potential disruptions to current plans. The board accepted the audit report without opposition, reflecting confidence in the district’s financial management.

The student spotlight segment honored a student named Jackson, recognized for his outstanding character and contributions to the school community. Jackson was described as a high-achieving individual who volunteers in the library, assists younger students, and fosters strong relationships with staff. He proposed converting the tennis courts into an ice rink to enhance community engagement. His shift in academic preference from math to science was attributed to the engaging activities and labs he participated in. Jackson’s involvement in hockey aligns with his interest in ice sports, and he balances extracurricular activities with academic responsibilities.

The meeting also addressed operational updates, including a new graphic designer position within the district, prompted by the retirement of a community and family education assistant. The board approved the creation of this position, which involves 180 hours annually, with compensation set at $1,918 per school year. The board also approved mileage and meal reimbursement rates for 2026, aligning with IRS guidelines for mileage and maintaining current meal rates.

Building and grounds updates highlighted ongoing projects at the middle school, including structural and mechanical improvements scheduled for completion during the Christmas break. Challenges with the new hybrid heating and cooling system, which combines water-cooled and steam systems, were noted, with multiple repairs required to maintain efficient operation. Similar mechanical issues were identified at North Elementary, necessitating additional repairs.

The meeting concluded with a positive fire marshal inspection report, which identified no major issues but noted several housekeeping tasks requiring attention. Inflation’s impact on project budgets was acknowledged, with some costs fixed through contracts while others fluctuate due to market conditions. Despite these challenges, the district remains on time and on budget, working closely with contractors to manage costs effectively.