A significant portion of the meeting was devoted to the presentation of the district’s recent financial audit. The auditors issued an unmodified opinion. This is considered the best possible outcome for an audit. Despite this positive result, the audit did reveal a common issue for districts of similar size: a lack of segregation of accounting duties. The board was assured that no significant internal control issues were identified. The audit also included a single audit report due to the district receiving more than $750,000 in federal funding, specifically testing the Child Nutrition program, which also resulted in an unmodified opinion on compliance.

The financial analysis revealed some challenges, notably a decline in the resident student count by about 54 students for 2024, with an overall reduction of 8% since 2020. Despite this decline, the district’s financial health was described as strong, attributed to a 2% revenue increase for fiscal 2024, primarily from state sources, which comprised 83.4% of total revenue. Local property taxes contributed approximately 10%, with an increase of $383,000 with the current levy. Expenditures rose by 4%, primarily in the instructional category due to additional personnel and wage increases. The general fund balance was reported at 13.2%, slightly below the state average of 21.9%, yet it remained healthy with a portion being unassigned.

Interest income played a notable role, with a significant increase due to favorable investment conditions, as the average return rate for local government investment pools in Minnesota reached about 5.5%. However, changes in legislative subsidies contributed to unpredictability in state aid figures. The board reviewed visual representations illustrating differences between local property tax funding and state sources, highlighting a decrease in equalization aid due to rising property values, shifting more funding responsibility to local taxpayers.

In addition to financial matters, the board engaged in a discussion regarding the district’s educational goals, particularly the newly renamed “comprehensive achievement and civic readiness” (CACR) framework. This change reflects the district’s objectives regarding student achievement and preparedness for life beyond school. However, there was frustration over the lack of clarity in the state-mandated goal for lifelong learning, described as “as vague as lifelong learner.” This ambiguity has led school districts to independently interpret the goal, prompting communications among superintendents statewide to align their approaches.

The report emphasized setting achievable goals, learning from past failures due to overly ambitious targets. Specific metrics for student readiness goals included a target for 65% of kindergarten students to achieve a particular reading score by Fall 2024, which was met at 66%. For math, the goal was set for 80% of kindergarten students to reach a certain benchmark, with an achievement of 86.1%.

Goals addressing the closing of racial and economic achievement gaps were also presented. These goals aimed for modest reductions in gaps over time, acknowledging that previous targets had been overly ambitious. For instance, the economic achievement gap was set to decrease by 2%, and specific metrics for racial achievement gaps were provided, with a focus on incremental progress rather than sweeping changes.

Further administrative discussions included the approval of a comprehensive contract extending from July 1, 2024, through July 2026. This contract incorporated an 80% contract for the first five months and a 1.0 Full-Time Equivalent (FTE) starting December 1, 2024. This was part of efforts to streamline contract language and align provisions with those of other directors.

Preparations for an upcoming referendum were also discussed. Confirmations were received from county auditors regarding approval of referendum questions, with a deadline for review and comment responses set for December 3. The timeline for absentee ballots was outlined, with the first available date being December 27 and the election scheduled for February 11. Community engagement efforts included presentations to various booster clubs and plans for further outreach to ensure broad awareness and understanding of the referendum questions.