The school board addressed a proposal to use an abatement bond to finance the water and sewer services project, which the city of Gibbon had agreed to bond at the district’s request. The project, primarily serving the school district, comes with an annual payment of approximately $130,000 over the next 20 years, totaling around $1.6 million. The abatement bond would allow the district to redirect this expense from the general fund, with the state’s school credit potentially covering 53% of the total cost. However, the proposal would lead to a tax increase, a point of concern for board members.

The urgency surrounding the abatement bond arose from recent legal clarifications, necessitating prompt action. The board planned a special meeting on May 5 to adopt a resolution and conduct a public hearing, with further steps scheduled for June, including bond issuance and a final ratifying resolution. The board’s consideration of the bond reflects an effort to strategically manage the district’s finances amidst ongoing budget challenges.

Alongside discussions of the abatement bond, the board reviewed budget assumptions and reduction strategies for the 2025-2026 academic year. Conservative assumptions were made regarding student enrollment numbers, with the district’s budget projecting a zero increase through open enrollment. These assumptions play a critical role in planning for future financial stability.

The board explored several budget adjustments, including the elimination of certain positions due to retirements and contract reductions. A special education teacher position will not be refilled following a retirement, and the district plans to reduce its contract with an HR service provider from $60,000 to $48,000. Additionally, the district is considering more cost-effective options for a family facilitator position and reviewing underutilized curriculum subscriptions for potential savings.

Another topic of concern was the Open Ed contract, an action item on the agenda. Open Ed provides online programming for homeschooled students, with the district set to receive 25% of the revenue generated. The proposed contract’s automatic renewal clause was advised against by legal counsel, prompting discussions about negotiating a one-year term instead. The board anticipated resistance from Open Ed due to associated marketing costs.

The board also navigated legislative changes impacting the district, including the implementation of Minnesota paid family leave, which introduces an 8% payroll tax. Contributions toward teachers’ retirement will rise from 8.75% to 9.5% starting July 1, further straining the district’s financial resources. These changes necessitate careful planning as the district prepares for the upcoming academic year.

Construction updates featured prominently in the meeting, with ongoing work at the new facility progressing despite weather-related delays. The project remains on schedule, with key developments including the installation of windows, casework, and roofing, as well as the completion of the storm shelter. The board also discussed community engagement efforts, including public input sessions for the old high school site and plans for a time capsule at the new school.

The meeting also highlighted various student and staff achievements. The school’s band and choir students recently returned from a successful trip to Florida, garnering praise for their conduct. The district participated in the Minnesota State High School League visual arts competition, with students receiving superior ratings. Upcoming events such as prom, the National Honor Society induction, and graduation were noted.