During the meeting, the revised budget for fiscal year 2025 commanded attention. The budget outlined a projected increase in general fund revenues by $1,711,576, reaching a total of $59,873,842. This increase was largely attributed to an uptick in Average Daily Membership (ADM), which saw an increase of 141 students. However, concerns were raised about the sustainability of these numbers due to anticipated declines in future enrollment. This potential decline is expected as a result of reduced incoming kindergarten sizes and larger graduating classes.

On the expenditure side, the general fund is projected to increase by $2,372,337, with total expenditures reaching $60,869,523. Contributing factors to these heightened expenditures included significant purchases, such as furniture and increased staffing costs, funded by ESSER dollars and other grants. The board also noted that while federal funds had increased this year, a reduction is anticipated in subsequent years as COVID-related ESSER funds are phased out. The last opportunity to access these federal funds is in September.

The board discussed the food service fund, where revenues were projected to remain stable, but expenditures were expected to rise by $415,000. This strategic adjustment aims to prevent the district from entering a Minnesota Department of Education (MDE) spend-down plan, which would necessitate close monitoring of spending if the fund balance exceeds six months of operating costs. The revised expenditures include purchasing cafeteria furniture and equipment for the high school kitchen to maintain a balanced fund.

During the budget discussion, a board member raised questions about the impact of newly added items on total expenditures and the effect on the fund balance. Clarification was provided that while expenditures increased due to new fund class codes, these had been anticipated. The adjustments could potentially lead to a lower percentage of the fund balance than initially projected. The board considered the district’s goal of maintaining a 12% fund balance and whether policy revisions would be necessary if the balance fell below this threshold. It was agreed that any such discussions would be part of future board updates.

Additionally, the board engaged in a conversation about funding restrictions impacting various school programs. A speaker highlighted the challenges posed by the lack of flexibility in using allocated funds, which are often earmarked for specific areas like food service or safety programs. This rigidity complicates addressing more pressing needs, such as hiring teachers. The speaker expressed frustration with the existing funding landscape, noting that many measures seem designed as short-term fixes, potentially leading to complications due to conflicting federal and state laws. There was a consensus that increased flexibility in funding would benefit the district.

Following the budget approval, the board turned its attention to the contract negotiation with the new superintendent, Dr. Steven Hyle. Although Dr. Hyle was expected to be present, he had to cancel due to unforeseen circumstances. The board expressed satisfaction with the contract negotiations, noting that Dr. Hyle would work closely with the current superintendent during the transition period. The contract, effective July 1, 2025, spans three years with an initial salary of $185,000 and subsequent increases. Benefits include vacation days, sick time, health insurance, and a relocation allowance contingent upon moving within district boundaries. The total compensation package was noted to be less than that of the previous superintendent.

A board member raised concerns about the contract’s duration clause. This prompted a discussion about the need for clearer language to ensure mutual understanding of expectations regarding the contract’s duration and renewal terms. Clarification was also sought on structuring the relocation allowance over the three years. It was discussed that if Dr. Hyle does not relocate within the district by a specified date, he would forfeit the relocation stipend.

The meeting also featured a presentation on Augmentative and Alternative Communication (AAC) devices. A speech and language pathologist shared developments regarding AAC implementation, emphasizing its importance in empowering students to express themselves and engage fully in communication. The presentation detailed the “four Ps” involved in AAC therapy: patience, persistence, personalization, and presentation. Real-life examples of students using AAC devices were provided.