The meeting marked the first joint session between the two bodies in nearly two years. One focus was on the declining birth rate and its impact on school enrollment and finances. Superintendent Jason Berg presented an in-depth analysis of the current demographic trends, revealing that the local birth rate has dropped by nearly 30% since 2010. This decline has led to a decrease in elementary school enrollment, although middle and high school numbers have seen slight increases.

Berg emphasized that the primary issue affecting enrollment is the declining birth rate, not families opting out of the district for charter or other schools. He clarified that this demographic shift is a common misunderstanding among the public, highlighting the need for accurate community communication. Despite new housing developments, the district projects only a modest 3.8% increase in enrollment over the next decade, rising from approximately 6,500 to about 6,900 students.

Financially, the district faces significant challenges. The current operating levy, approved in 2015, generates around $5 million annually but is set to expire after the 2025-2026 school year. Comparative analysis showed that neighboring districts, like Hopkins, generate up to $4,200 per learner, while Farmington generates about $2,200. This disparity affects the district’s spending capacity, which sits at about $13,000 per learner compared to the state average of approximately $15,700.

The district’s financial strain is further compounded by mandated costs for special education and multilingual services, which are not fully covered by state or federal funding. Approximately $5.7 million from the general fund is allocated for special education, with an additional $1 million for multilingual support. These expenses impact the district’s budget, limiting resources available for other educational services.

To address the financial shortfall, the board has proposed a new referendum to revoke and replace the existing levy. This plan aims to increase revenue by $860 per pupil, raising the current amount from approximately $690 to about $1,537 per pupil, generating an additional $6 million annually. The potential impact on homeowners, particularly those with properties valued around $350,000, would see an increase of about $426 annually.

Discussions also highlighted the importance of community engagement and clear communication regarding the referendum. Previous efforts to inform the public through newsletters and direct mailings were deemed insufficient, with many community members reportedly unaware of the referendum. The absence of visible yard signs was identified as a potential factor in low awareness levels. Members stressed the need for individual conversations and grassroots advocacy to raise awareness and encourage voter turnout.

The meeting also delved into the broader economic development of Farmington. The council discussed the necessity of diversifying the tax base beyond residential growth to ensure sustainable financial health. However, this alone is insufficient to stabilize the district’s finances.

The potential development of technology parks or data centers was discussed as a strategic approach to increase tax revenue without overburdening city services. One notable example was a data center project that could increase tax revenue from a specific parcel of land, rising from approximately $15,000 annually to over $2.6 million within a few years. Such developments are viewed favorably by the state of Minnesota, which offers incentives to attract these projects.

The session concluded with a proposal to establish a regular meeting schedule between the city and the school district to promote better communication and collaboration. Suggested meetings twice a year in March and August would align with fiscal calendars and upcoming budget discussions, fostering a deeper understanding of each other’s visions and enabling both entities to tackle issues collectively.