Central to the meeting was the public hearing on truth in taxation, which provided an in-depth overview of the fiscal year 2026 budget and associated property tax levy. The presentation underscored that revenue formulas are largely determined by state legislation, with exceptions for voter-approved referendums and local optional revenue. This led to a detailed breakdown of the school district’s budget, highlighting a 93% increase in revenues for the general fund and changes in other funds, such as a notable 88.55% decrease in the debt service fund due to an expiring bond refunding.

The board discussed the proposed levy, emphasizing its role in generating revenue for fiscal year 2027. A maximum levy of $724 per adjusted pupil unit was authorized, with discussions around factors influencing tax changes, including inflation and property improvements. The board analyzed the impact of potential under-levying, noting that a $300,000 home would see a $28 tax increase if levied at maximum capacity, compared to just $4 if under-levied, effectively reducing the burden on taxpayers.

The meeting also included a financial update, with auditors providing a clean audit report, highlighting the adoption of a new standard for compensated absences. The auditors cautioned against potential phishing attacks related to electronic payments and recommended verification procedures to prevent fraud. They reported a general fund balance of approximately $2.6 million, with about $1.8 million available for discretionary spending, representing around 15.37% of general fund expenditures—deemed healthy, albeit slightly lower than the previous year.

Further discussions addressed the school readiness program’s notable deficit, which increased by approximately $100,000 to a total of $120,000 during fiscal year 2025. Recommendations were made to consider transferring funds from the general fund to address this issue. Despite these financial challenges, the compliance section of the audit revealed no findings in the Minnesota legal compliance letter, although three findings were noted in the government auditing standards letter, including repeat concerns related to separation of duties and unique delays in debt refinancing accounting tasks.

Educational topics were also prominent, with discussions on the district’s achievement gap and college readiness initiatives. The district acknowledged missing proficiency goals within the special education population for reading, yet expressed optimism for future improvements. A pilot program for post-graduation planning was highlighted, with participation increasing significantly. This initiative is designed to better prepare students for post-secondary life, whether in college or the workforce.

The board reviewed the Minnesota Comprehensive Assessments (MCA) data, which revealed mixed results across various grades and demographic groups. While statewide proficiency decreased, Royalton’s results for free and reduced-lunch students remained above state benchmarks. The board discussed the need for broader data points to assess student academic needs and teacher performance, given changes in MCA formats, particularly in science assessments.

Additionally, the meeting celebrated community engagement through events like the Veterans Day program and turkey bingo, with positive feedback from attendees.

In administrative matters, the board approved the naming of official depositories for district funds and authorized financial management actions, such as fund investments and electronic transfers. Acknowledgment of substantial community donations further underscored the district’s strong ties with local businesses and supporters.