At the Lanesboro School Board meeting December 10, the board listened to the Truth in Taxation presentation by Superintendent Matt Schultz, the 2024-2025 audit presented by Kali Lentz of Smith Schafer and details of the negotiated teachers’ agreement from Steve Storhoff. By the end of the meeting, the board had a good understanding of Lanesboro School’s current finances.
No citizens attended the Truth in Taxation meeting, but Schultz continued to share his information. He described the levy cycle process. The county assessor determines the market value of parcels, the legislature establishes formulas to determine taxes to be paid for each type of property, and the county auditor calculates the tax capacity for each parcel. The legislature determines the maximum levy limits school districts can assess.
In 2024-2025 Lanesboro spent into its fund balance with total revenues of $8,089,838 and expenditures of $8,264,381. Currently, Lanesboro is on Tier 2 LOR (Local Operating Revenue) and receives up to $724 per pupil.
The state general education formula allowance fell even further behind; the school has to make up the difference in order to educate its students. Inflation hits the school hard. One example given was the price of buses. The same bus that cost $94,000 four years ago, now costs $143,000.
The proposed tax levy for 2026 is $1,158,526, which is down 3.65% from the previous year’s $1,202,471. This is due in part to the decreased enrollment.
Lanesboro is one of few schools in the area that do not have an operating referendum. Schultz asked, “Should we consider a future operating referendum?”
Schultz felt it was time to consider an operating referendum. He pointed out the persistent deficit in Community Service which funds preK, child care and summer rec; the increased costs of equipment, supplies and staffing; the fact that PSEO (post secondary enrollment options) reduces school revenues; the unassigned fund balance is declining year after year; and the desire to retain quality teachers. The unassigned fund balance is 16% of the total general fund balance; the board has recommended a 25% balance.
When Mark Holmen asked if they should discuss an operating referendum in June, Schultz replied it should be sooner. He emphasized that they needed to be transparent in the process; he felt a possible vote at mid-term elections in November would work well.
In closing, Schultz encouraged residents to consult their tax professional to find out about a regular homestead credit refund and a special property tax refund for which they might qualify.
2024-2025 Audit
Kali Lentz of Smith Schafer presented the audit summary for 2024-2025. An unmodified “clean” opinion was issued; this provides reasonable assurance that the district’s financials are free from material misstatement.
The General Fund had a deficit of $50,000 this past year after transferring funds to Community Service which continues to operate at a deficit. Community Service Fund balance decreased to a negative $334,271 for last year.
The Food Service Fund had a balance of $295,598 which is still too high and needs to be spent down. Tables, chairs and equipment had already been purchased to use some of the excess.
Lanesboro’s cost per ADM (average daily membership) for administration services was lower than other schools of its size but a little higher than the state average. Regular instruction cost was higher than the state average; this shows that the school is spending its money on teachers for student education, exactly where it should.General Fund cost per ADM was lower than both schools of the same size and the state average.
The audit was approved by the board as well as the certification of the $1,158,527 levy following the presentations.
Teachers’ Agreement
Steve Storhoff shared that the negotiators had met three times this fall. The teachers had presented teacher pay data from area districts. An agreement has been reached which increases salaries by 2.25% year one and 2.5% year two.
A pay increase for preschool was approved. Full single insurance is now paid for teachers. Last year, the insurance coverage was short by about $600 of being full single coverage. Teachers are able to purchase family coverage if they want. Less than 50% of the teachers take the insurance offered by the school. Teachers who have other insurance are able to take a cash in lieu payment which is paid out as salary.
Other Business
In other business the board:
- Approved the hiring of Jordan Lea as custodian;
- Approved a FMLA leave for Brittiny Alter;
- Completed second and first reading of policies; minimal changes were made;
- Gratefully accepted gifts in the amount of $3,128.
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