Waconia board directs administration to prepare $3 million operating referendum for Nov. 4, 2025

The Waconia Public School District board directed district administration on June 9 to prepare ballot language for a $3,000,000 operating referendum to be held Nov. 4, 2025.

The motion to prepare ballot language passed after administrators presented a multi‑year financial model showing how different referendum amounts and policy choices would affect the district's projected fund balance through fiscal 2029. Director of Finance and Operations Pam Carman led the presentation, calling the modeling “a way to really do that is to try to walk you through how we look at this as a district and at the administration level” as the board adjusted variables in real time.

Board members and staff discussed enrollment trends, assumed reductions in full‑time equivalents tied to falling enrollment, the potential cost of a market‑correction for staff salaries, and legislative changes captured in the revised forecast — notably a cut in special‑education transportation reimbursement to 95% in FY26 and 90% thereafter. Carman said those legislative changes would be reflected in the district’s revised budget and showed how different referendum amounts affected the unassigned fund balance.

The board debated options including delaying or declining to submit a referendum, then focused on a range between $3 million and $3.5 million. After testing scenarios with the district’s model — including options to add two elementary specialists, a K–12 media position and a phased market‑correction — members coalesced around $3 million as providing a modest cushion without requesting additional taxpayer burden beyond community testing. Board members noted the district is projecting a gradual decline in fund balance through 2029 and said they wanted a reserve that gives the district room to phase budget adjustments rather than forcing steep cuts later.

A board member summarized the rationale: “I would like to see as much in reserve in ’29 as the rate we are declining. So if we’re declining at $2,000,000, I would like to see at least $2,000,000 there.” Carman said the model will be refined and used for further planning and ballot materials.

The board voted to “direct the district administration to proceed with ballot language preparation for a special election to be held 11/04/2025 with an amount of $3,000,000.” The motion was moved and seconded on the record; the board then approved the motion by voice vote (all in favor; no recorded opposition).

Next steps: district staff will prepare referendum ballot language, the tax‑impact materials and other public communications; administrators said they will continue refining the five‑year model and return to the board with updated figures and drafts of ballot language.

Context: District staff warned the board that several legislative items could reduce net revenue even if state formula increases are approved, including changes to special‑education reimbursements and other categorical programs. Carman told the board the fiscal model assumes a 2% general‑education formula increase by default but that the net local impact depends on how the Legislature offsets other costs.

Votes at a glance: the board later adopted the FY26 budget and approved other consent and action items at the same meeting; the referendum preparation motion was the primary policy direction emerging from the finance discussion.