Central to the meeting was the examination of the property tax levy, which saw a decrease of approximately 1.3% for the upcoming year. This decision was guided by changes in state funding formulas, allowing the district to maintain funding levels while levying less locally. The board emphasized the strategic importance of balancing local tax efforts with state aid, highlighting that while local revenue constituted about 13.5% of the district’s general fund, state contributions formed a significant 82%.

Board members and presenters underscored the issue of special education underfunding, revealing a $3.6 million deficit despite recent increases. It was emphasized that the state underfunds special education by roughly $726 million after adjustments, a shortfall with substantial implications for the district’s financial planning. This challenge necessitates legislative advocacy and strategic financial management to ensure the district can meet its obligations without compromising educational quality.

The board also delved into the fiscal year 2024 audit report, which presented a clean audit opinion with some internal control deficiencies cited. These included concerns about the preparation of financial statements and the segregation of duties within the finance team. The audit also raised issues in compliance with federal procurement standards, although the funds were deemed properly spent under differing state and federal guidelines.

Further discussions detailed revenue and expenditure trends, with revenue exceeding budget expectations by $5.1 million, while expenditures surpassed projections by just over $6 million. Despite these variances, the general fund balance grew by approximately $923,500, although it remained below the district’s target range for unassigned funds. The board noted similar financial trends across other school districts, particularly following the COVID-19 pandemic.

In addition to financial matters, the board received updates on key capital projects, notably the Moorhead High School construction and the Performing Arts Center. These projects are progressing on schedule, supported by favorable weather conditions and diligent contractor efforts. The Performing Arts Center, in particular, has made strides with the installation of pre-cast wall panels.

The meeting also addressed a request for land detachment, where a landowner petitioned to transfer parcels from the Moorhead district to the Ada-Borup West School District. The board expressed concerns over setting a precedent for future landowners, ultimately voting against endorsing the request to avoid a potential influx of similar petitions.

Routine matters included the approval of polling places for non-statewide school district elections and the second reading of policies without changes, both passing without contention. The meeting concluded with closed sessions to discuss the superintendent evaluation and property transactions, before adjourning shortly thereafter.