Brandon Valley releases five-year plan outlining capital projects, budget risks and enrollment growth

Brandon Valley School District 49-2 on Monday presented a five-year plan that lays out capital projects, operating-budget projections and enrollment forecasts, and warns that pending state legislation could reduce future capital outlay revenues.

The presentation, led by Mr. Lundberg with comments from Superintendent Larson, detailed funding and schedule expectations for Berkman Valley Elementary School, a planned middle-school classroom addition and a longer-term $10 million renovation and athletic-complex phase. "We anticipate being open in the fall of 2026 for the 26-27 school year," Superintendent Larson said of the new elementary.

The plan matters because it ties near-term construction and staffing decisions to the district's financial projections. The capital outlay fund — which the presenters said is funded by property tax revenue — will be used to issue debt to pay for the elementary and a middle-school addition. Mr. Lundberg said the district expects to finance a roughly $30 million elementary school and an $8 million middle-school addition through capital outlay debt and continued use of cash reserves. He also said the district has set aside money to cover a later $10 million phase for the middle school and athletic complex, funded by planned cash accumulation over multiple years.

Administrators flagged a major uncertainty: proposed legislation to limit property-tax growth and new-construction growth could materially reduce capital outlay revenue. "This fund this year has been subjected to some tough legislation," Lundberg said, noting he modeled a worst-case scenario in projections. He warned that new-construction growth that historically added "$300,000–$400,000 a year" to the capital fund is now projected in the plan to add only about $100,000 annually under the worst-case assumption.

On operating finances, Lundberg said general fund revenues are partially driven by student counts and a one-time volatility in "other revenue" (bank franchise tax and state apportionment). He noted the district received higher-than-budgeted bank franchise tax this year but emphasized that the state aid formula will fold such volatility into future calculations. The district reported roughly two-thirds of the fiscal year complete and general fund expenditures at about 65% year to date.

Enrollment projections were a key positive: the district reported 115 more students than budgeted this year and said it is projecting an additional 90 students next year and roughly 75 per year thereafter. Lundberg described kindergarten screening results (341 screened this year vs. 333 last year) and said he is planning for about 380 kindergarten students if trends hold.

Board members asked multiple clarifying questions about enrollment variability and fund-balance targets. When asked whether the district should raise its fund-balance target above the board goal of 15%, Lundberg said he did not recommend raising the target, calling 15% appropriate given expectations and taxpayer preferences.

Smaller operational notes included construction logistics: Superintendent Larson said Sunshine Avenue construction bids would open the following day and that temporary traffic controls and detours tied to local road projects will affect routes near the new elementary. Administrators also warned a Highway 42 bridge project is delayed and that Veterans Parkway/Arrowhead Parkway intersection work will include temporary closures and detours.

The presentation was informational; no final budget adoption occurred at the meeting. Board members were told preliminary capital outlay and staffing recommendations will return for action at upcoming meetings (bids review on March 20 and board action on March 24 for recommended items).

The board did not take formal action on the five-year plan at the session; administrators said several staffing and capital items in the plan will appear as formal recommendations in March and April.