Osseo Area Schools reported a positive preliminary year‑end financial picture for fiscal year 2025 on Sept. 23, but business officials warned that long‑term projections show expenditures outpacing revenues beginning in fiscal 2026. Kelly Benussa, director of business services, presented preliminary results for the year ended June 30, 2025, and a district five‑year financial projection.

Benussa said the district’s general fund revenues exceeded budgeted amounts by about $3.5 million and that tax collections came in $383,000 higher than budget. Third‑party medical assistance billings increased collections by $548,000. On the expenditure side, salaries totaled about $1.3 million under budget, and overall expenditures were under budget by roughly $5.7 million, producing a net revenue‑to‑expenditure variance within the district’s planning benchmark.

The nut graf: while FY25 closed with positive variances, district staff and trustees emphasized that those results will be applied to long‑range planning because current projections show a declining fund balance through fiscal 2030 unless additional actions are taken.

Benussa reviewed fund‑level changes: total fund balances across all funds decreased from $410 million to $365 million at June 30, 2025 (a $45 million decrease). The general fund balance rose by $9.6 million when nonoperating funds were included. The building construction fund balance fell by $50.6 million, reflecting a $61.6 million spend‑down of current and prior bond issues. The food and nutrition services fund balance increased to $6.4 million (about 37% of annual expenditures), and the community service fund decreased to $4.1 million (about 19% of expenditures).

Benussa also presented a five‑year projection that incorporated assumed changes to state revenue formulas, the district’s new 10‑year transportation contract beginning in fiscal 2026, anticipated enrollment alignment and an assumed 3% cap on expenditure growth. The projection includes operational reductions totaling $5 million planned for fiscal 2028–2030 and shows the district’s fund balance trending downward against a 5% board‑policy minimum fund balance.

Board members thanked staff for cost containment and proactive planning. Benussa noted the district will incorporate the FY25 results into the long‑range financial planning process; auditors will deliver the final FY25 audit at the board’s Nov. 18 meeting and the board will take midyear budget action in February 2026.

Ending: Benussa urged ongoing monitoring and said staff will add contract and cost‑driver details to the five‑year model as they are finalized.