Mahtomedi board approves 2024-25 budget revisions, adopts 2025-26 reduction plan after discussion of activity fees and senior passes

The Mahtomedi Public School District Board on Monday approved minor revisions to the 2024-25 budget and adopted a budget-reduction update for 2025-26 as the district faces continued enrollment and aid uncertainties.

Finance Director Tim Erickson told the board the district’s 2024-25 revisions increase revenue by about $106,000 (0.21 percent) and decrease expenditures by about $109,000 (2.1 percent), producing a roughly $215,000 positive swing compared with the originally approved budget. Erickson said the revision reflects settled contract costs, revised enrollment estimates and adjustments to state and federal aid.

The board approved the 2024-25 budget revisions by unanimous roll call. Erickson said the district’s unassigned fund balance after the revision would be about $3.616 million, with a total (including assigned items) of about $5.918 million, roughly 11.5 percent of expenditures.

Why it matters: Board members said the revisions and the separate 2025-26 reduction plan are meant to preserve multi-year financial flexibility as state funding and local enrollment remain uncertain. The 2025-26 update accepted Monday would use about $760,000 of fund balance and leave the district at roughly an 8 percent fund-balance target (about 29 days of cash on hand), a percentage commonly used by districts.

Key drivers and changes - Erickson identified enrollment estimate changes, special-education aid adjustments and long-term facilities maintenance accounting changes as key drivers. He said a shift in debt-service accounting reduced available LTFM revenue by about $382,000. - On expenditures, settled contracts and staffing adjustments produced net reductions. Capital purchases were reduced by roughly $235,000 and various purchased services and supplies were trimmed.

Activity fees, senior passes and student admission Trustees spent substantial time discussing activity and ticketing revenue as part of the 2025-26 reductions. The draft reduction plan included a 5 percent increase in activity fees, down from a previously discussed 20 percent proposal. Board members said the 5 percent increase would generate roughly $14,000 and was meant to keep fees more gradual and predictable.

The board also discussed two related proposals: expanding the existing in-district “Golden Zephyr” pass for senior residents to include nonresident grandparents and allowing students broader free access to home events. Staff estimated current year-to-date student ticket revenue at about $19,156 and estimated potential lost ticket revenue from extending free admission to outside seniors at roughly $10,000 for a full year if all usage patterns held. The district has sold about 20 all-sports student passes so far this year (roughly $2,800 in revenue), and staff noted existing scholarships for low-income students.

Administrators cautioned that opening gates to more guests could increase supervision needs and related costs. “If we increase attendance without additional supervision, there can be safety and conduct risks,” Erickson said in describing nonrevenue impacts; other administrators and board members raised similar operational concerns.

Board action and next steps - The board approved the 2024-25 budget revisions by roll call (all ayes). - The board then adopted the 2025-26 budget-reduction update as presented (all ayes). Board members said updated three-year projections will be presented at an upcoming study session.

Votes at a glance (board roll calls recorded in meeting minutes) - Donations and grants (January and February 2025 totals of $46,122.69 and $6,449.45): approved, unanimous. - Budget revisions, 2024-25: approved, unanimous. - Budget reduction updates and proposed use of fund balance, 2025-26: approved, unanimous. - Final reading of listed policies (third reading): approved, unanimous.

Clarifying details - 2024-25 revision: revenue +$106,000 (0.21%), expenditures −$109,000 (2.1%), net positive ≈ $215,000 (Erickson’s presentation). Source: Finance Director Tim Erickson’s report. - Unassigned fund balance (after revision): $3,616,000; combined assigned + unassigned: $5,918,000 (≈11.5% of expenditures). - Proposed use of fund balance for 2025-26 reductions: ≈ $760,000, leaving projected fund balance ≈ 8% (≈29 days cash on hand). - Student ticket revenue to date: $19,156 (staff estimate presented at meeting). - Estimated revenue loss if nonresident seniors admitted free: ≈ $10,000 (staff estimate; not adopted). - All-sports passes sold: ~20, generating ~$2,800 year-to-date.

Context and constraints Board members repeatedly noted that many numbers remain estimates until the state finalizes aid and until end-of-year accounting. Erickson and staff said the board would receive updated monthly reports and a three-year projection at a study session before finalizing the next year’s budget.

Speakers quoted or paraphrased in this article are those appearing in the meeting record; direct quotes are attributed to Finance Director Tim Erickson. Other board comments about fee philosophy and supervision were paraphrased to reflect discussion without attributing remarks beyond the official roll-call participants.

Ending note Trustees said they favored modest, phased fee adjustments over sudden large increases and asked staff to return with updated projections and any operational cost estimates related to broader senior or student admission policies before any final policy change.