District finance report: Moody’s outlook steady; bonds to be priced next week, revised budget to be presented in April

A district finance presenter reported to the Sartell‑St. Stephen School Board on March 1 that Moody’s expects to maintain the district’s A1 bond rating and that the district is on track to price bonds next week. The presenter said bond proceeds would not be received until after the district’s April meeting and that a preliminary agreement would be signed to lock pricing for 30 days.

The presenter said the district’s year‑to‑date general fund and community service fund revenues are tracking ahead of budget through February and that a revised budget for the current fiscal year will be presented for board consideration in April. Staff also said they are preparing a preliminary budget for next year but must wait for legislative outcomes that could affect revenue assumptions.

On state school finance issues, the presenter summarized topics discussed at a recent Minnesota School Boards Association (MSBA) legislative session and said the district faces potential losses in compensatory revenue tied to changes in how the state counts eligible students. The presenter said the district could lose “roughly $125,000” next year under current proposals. The finance presenter also described conversations about local optional revenue caps, special education cross‑subsidy funding, and operating capital revenue.

Board members received an update that the district retains about 95% of resident students historically and that Moody’s review cited that retention as a positive factor. Staff said they would report the official rating after the outside firm issues its formal letter.

The finance presenter said a bond ratings call took place the prior week and that the district’s bond sale pricing would be set in the coming days; sale and closing timelines were described as contingent on market pricing and later board approval. Board members were invited to ask questions; none changed the staff’s timeline.