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Board approves revised FY 2024–25 budget amid planned construction spending; several routine motions passed
Summary
The Faribault board approved a revised fiscal‑year 2024–25 budget that intentionally spends down construction and other fund balances while maintaining a healthy unassigned general fund balance. The board also approved donor resolutions, the ice‑arena contract and other routine items; the final budget passed 5–1.
The Faribault Public Schools Board approved a final revised fiscal‑year 2024–25 budget at its May 19 meeting after a detailed presentation by district finance staff.
Finance staff said the revision reflects updated federal, state and local revenues, higher health‑insurance costs and planned spending from the construction fund. Highlights the board reviewed: - General fund: Revenues and expenditures were updated to reflect titles and federal aid corrections; benefits rose by approximately $1,170,000 largely due to insurance and contract adjustments. The district’s unassigned general‑fund balance is projected to end the year at about $8.99 million (roughly 14.19% of expenditures), well above the district minimum policy target of 9.5%. - Construction and capital: The revised budget intentionally spends down construction fund balances (about a $4 million planned decrease) to match the timing of projects; the construction fund was replenished in FY24 via bond proceeds and is being drawn down as work proceeds. - Food service: The district increased planned food‑service expenditures to use excess fund balance within state guidance for spending down after the COVID‑era reserve increase. - Internal service (self‑insured health): The district is projecting increased claims and has increased premiums for FY26 by about 15% to stabilize that fund.
Board action and votes - Final revised FY 2024–25 budget: Motion to approve the revised budget carried by a 5–1 vote. (Motion moved by Director Linda Boudreaux; second by Director Chad Wolf.) The meeting transcript recorded a 5–1 outcome but did not record a full roll‑call line‑by‑line in the minutes excerpt. - Gifts and donations (Resolution 25‑29): The board approved multiple donor gifts and Memorial contributions and accepted a $1,500 donation from Hosanna Church for school supplies; the resolution passed on roll call 6–0 (Ayes recorded: Linda Boudreaux; Candice Knudson; Linda Moore; Cassie Steeves; Chad Wolf; John Bellingham). - Ice‑arena contract (FY 2025–26): The board approved the fiscal‑year contract for use of the local ice arena; board members said the agreement follows previous years’ terms and dates. - Consent agenda: The board approved minutes, personnel items and other routine items by motion; the motion passed (no roll‑call tally printed in the excerpt).
Finance committee context: The committee had reviewed the draft revision May 12 and discussed causes for changes, including a miscalculation in kindergarten projections that contributed to lower-than-budgeted enrollment and adjustments to benefits, special‑education revenue timing and LTFM/capital schedules.
Why it matters: The revision manages one‑time construction spending while keeping a conservative general‑fund balance. Board members stressed the need to monitor the self‑insured fund and to align staffing with enrollment shifts.
Next steps: District staff will monitor claims experience and enrollment, return to the board with updates as needed, and proceed with planned construction work and LTFM projects funded in the revised plan.
