Board approves preliminary 2025–26 budget for publication; finance staff flag TID closure and defeasance options

The Plymouth School Board on Thursday approved the district’s preliminary 2025–26 budget for publication and agreed to the corresponding budget adjustments for two recently reported gifts. Finance presenter Amy reviewed the district’s recap and the state’s new DPI publication form, saying the district projects a preliminary operating deficit of about $383,000 for 2025–26 but noted the district ended 2024–25 with a larger-than-expected audited fund balance after receiving TID closure proceeds. Key figures and actions - Consent and bills: Earlier in the meeting the board adopted the consent agenda and approved bills for 08/01/2025 through 08/31/2025 in the amount of $2,418,706.08 as part of routine business. - Budget vote: The board voted to approve the preliminary 2025–26 budget for publication. (Motion moved and seconded; “All in favor, say yes.”) - Projected deficit: Amy said the district was projecting a $383,000 deficit for the coming year and that last year’s audited results added about $950,000 to the district’s fund balance after the audit was completed. TID closure and defeasance discussion Amy told the board the closure of Tax Incremental District (TID) No. 4 in the City of Plymouth produced a large payment to the district — roughly $500,000 earmarked to cover completed capital projects — and that the TID closure increased the taxing district’s valuation by about $169,000,000, which the district estimated as an overall 18.7% valuation increase across municipalities. District staff warned the board that increasing property values could reduce state aid in future years because “property-rich” districts receive less state equalization aid. To smooth the effect on taxpayers, the administration discussed defeasance: accelerating payments toward referendum principal by levying a specified additional amount for a period to reduce future levy volatility. The district said Jordan (financial advisor) will present charts and options at the Committee of the Whole meeting in October. Gifts and budget adjustments The board accepted two donations and approved the corresponding budget adjustments: $780 from Sargento to Parkview Elementary and $1,864.80 from Riverview RAP for transportation to Bay Beach. A board member moved to accept the donations and the adjustments; the motion passed by voice vote. What the board was told about revenue drivers - Special education reimbursement: Amy said the state increased the special-ed reimbursement rate in the recent state budget from 33% to 42%, but emphasized the reimbursement is prorated across districts and the district will not know exact amounts until statewide data are finalized; she therefore recommended conservative budgeting. - Community education levy: The administration proposed increasing the Community Education tax levy from $185,000 to $245,000 to reflect program growth and expanded day-care and after-school offerings; that would be a $60,000 increase and was included in the publication form. Board action and next steps The board approved the publication of the preliminary budget, which the district said will likely be adjusted after DPI provides final numbers on Oct. 15. Jordan will provide a defeasance presentation at the Committee of the Whole meeting in October to inform any decisions about stabilizing levy impacts going forward.