The board addressed the district’s financial situation, with particular emphasis on the revised budget following adjustments made by the Minnesota Department of Education. The budget discussions centered on the per-pupil basic allowance estimate, expected to increase gradually. This revised budget highlighted discrepancies between revenue and expenditures, which will be further refined in future reports. As of July 1, 2024, the district’s fund balances were reported at $72,000 restricted and $2.3 million unrestricted, totaling approximately $3.1 million. The district, which had previously purposefully reduced its fund balance, is starting to see a recovery.

A key point of debate was the mandated 1.5% levy for debt service, designed to ensure adequate funds if taxpayers fail to pay their taxes. Due to high tax collection rates, the district’s bond fund balance had increased, allowing a levy reduction. This prompted discussions about the financial health of the district, particularly how increased budgeted expenditures might affect the unassigned fund balance, which slightly decreased to about 21.3% of budgeted expenditures for fiscal year 2024. A $154,000 increase in restricted funds was noted, with some funds allocated for the 2025 school year.

The food service fund was a subject of concern due to the provision of free meals, with revenues exceeding expenses and resulting in a surplus. The district’s food service fund balance exceeded the typical three-month surplus limit, spurring discussions about potential investments, such as acquiring a specialized oven to enhance food service capabilities. The free meals initiative impacted the food service fund, with state aid increasing by approximately $2,000, while student meal revenues saw an $80,000 decrease. The surge in meal participation raised concerns about potential state overpayment and future adjustments. The district is considering additional equipment due to increased meal service demands, including new lunchroom tables and counters.

In the context of financial management, the school board discussed upcoming accounting standards, particularly a new requirement for reporting compensated absences, which could affect future fiscal reports. The board was relieved to learn that this change would not impact the general fund or community service fund.

The school board also highlighted the district’s extracurricular programs and community engagement. A busy fall was reported, with high participation rates in activities such as youth basketball and wrestling. Community involvement in events was noted, with a record turnout for a large party. The district’s scholarship fund was discussed, emphasizing financial support for families, especially during summer months when demand is highest.

In a broader context of community initiatives, the board discussed the successful concessions and donations from the community, the thriving adult basic education program, and the provision of daycare services covered externally, which alleviates financial pressure on the school. A significant fundraising effort raised nearly $6,000, and various community events, including a craft sale and pancake fundraiser hosted by the Lions Club, were highlighted.

The meeting also covered educational activities, such as the “parade of balloons” at the school, a “book tasting” event at the local library, and an upcoming music concert, which raised concerns about parking logistics due to a concurrent varsity game. The administration assured that they were addressing parking arrangements.

In terms of student achievement, the board discussed the annual world’s best workforce and achievement integration data, focusing on goals related to school preparedness and college readiness. High percentages were reported for student readiness in reading and mathematics, though the removal of the “read well” goal by third grade by the MDE generated some surprise. The board debated the state’s decision and considered maintaining its own reading proficiency goals. The graduation rate was reported at 98%, and a new initiative was introduced to foster lifelong learning, with plans to develop surveys to gauge student progress.

The board also discussed legislative changes, particularly the Minnesota Paid Family Leave Act, which will affect school employee sick leave policies. This raised concerns about potential financial repercussions for the district. The board acknowledged the need for a special meeting to address the upcoming superintendent search, with discussions about staffing, scheduling, and teacher contract negotiations for the 2025-2026 school year. A special meeting was scheduled to finalize the superintendent search details.

Finally, the board moved to certify the 2024 payable 2025 property tax amount, with a motion presented and seconded. A resolution to establish combined polling places for school district elections was reviewed and approved, detailing precincts and polling locations for non-statewide election days.