The board’s deliberation on legal counsel was notably extensive. Concerns were raised about the cost and competitiveness of retaining the current legal firm, Kennedy and Graven. A motion was proposed to table the decision on legal counsel pending additional bids from at least two other firms to ensure cost-effectiveness. Some members emphasized the necessity of having legal representation readily available, especially for ongoing matters involving human resources and policy development. Ultimately, the motion to delay the decision was unsuccessful, and a subsequent vote led to the decision to retain Kennedy and Graven as the district’s legal counsel for 2025.

Another focal point of the meeting was the debate over the structure and necessity of various board committees. Discussions centered around the historical and current roles of committees, such as the Facilities Committee and Activities Advisory Committee. There was a proposal to extend the review period for committee assignments, allowing members to become more familiar with their roles. A motion was introduced and passed to retain the current committee structure, including the preservation of the Activities Advisory and Facilities Committees, while adding board representation to the Schedule C and D Committees.

Compensation for board members was also reviewed. The board examined compensation rates from the past five years, with one member voicing opposition to paid political office. Despite this viewpoint, the majority supported maintaining the current compensation rates, and the decision was passed with one dissenting vote.

In financial matters, the board received an in-depth presentation of the 2024 audit report by the Director of Business Services and representatives from the auditing firm. The report, now referred to as the Annual Comprehensive Financial Report (AER), highlighted improvements and areas needing attention. It noted an increase in implemented standards, specifically in capital asset reporting where technology devices and furniture must be capitalized. The audit identified two material weaknesses related to internal control and compliance, attributed to staff turnover. Despite these issues, the audit gave a clean opinion on federal awards, with no material weaknesses or non-compliance instances related to federal spending.

The audit report also provided insights into the district’s financial health, noting improvements in fund balances over the past decade. The average daily membership was reported as slightly decreased, while general fund revenues slightly exceeded the budget. However, expenditures were below budget, with state sources constituting the majority of revenues. The report urged the board to consider optimal fund balance levels for special revenue funds and highlighted the financial strategies needed moving forward.

A city official updated the board on initiatives benefiting youth programs, emphasizing the importance of collaboration between the city and the school district. Community members expressed concerns about legal advice and the board’s handling of book bans in schools, urging adherence to legal recommendations for the community’s benefit.

The meeting concluded with discussions on communication protocols among board members to avoid violations of open meeting laws, as well as potential revisions to school policies based on feedback from the Minnesota Department of Education. The superintendent recommended utilizing a special policy committee to address these changes. The board also discussed organizing a gathering for new members to enhance communication and collaboration.