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Faribault board adopts FY2025–26 budget with planned fund‑balance drawdown
Summary
The board approved the district’s FY2025–26 adopted budget after an extensive presentation by finance staff. The general fund projects revenues of about $65.9 million and expenditures of roughly $67.4 million; total all‑fund expenditures are projected at $84.7 million. The motion passed 5–1.
The Faribault Public Schools School Board voted to adopt the district’s fiscal year 2025–26 budget at its June 23 meeting following a detailed presentation by district finance staff.
Business staff presented the proposed budget’s highlights: the district projects general‑fund revenues of about $65,857,215 and general‑fund expenditures of approximately $67,445,737. Across all funds, projected revenues total $80,308,228 and expenditures $84,743,506, leaving projected total fund balances of $15,874,066 at the end of the year — a planned drawdown of $4,435,278 compared with the beginning balances. The district’s unassigned general‑fund balance is projected to end FY26 at just under $7 million, about 10.54% of budgeted expenses; administrators said that is above the district’s minimum policy level but reduced from the prior year.
Superintendent and finance staff cited several drivers: a 2.74% increase in the basic general‑education formula, a conservative $400,000 projected increase in compensatory (basic skills) aid pending state confirmation, higher contract settlements and benefits costs (combined increases shown as $2,472,920), and rising transportation and contracted services costs. Construction and long‑term facility maintenance planning — especially HVAC project timing and associated bonds — were explained as reasons for movement among fund balances and a planned multi‑year transfer of $250,000 from the unassigned fund to an assigned curriculum reserve.
Staff also outlined food‑service and community‑education fund plans, including summer meal non‑congregate pickups and planned equipment purchases to spend down an elevated food‑service fund balance under Minnesota Department of Education guidance. The presentation included enrollment assumptions, the anticipated effect of students transferring from a closed STEM charter school, and multi‑year projections showing pressure on reserves in later years if enrollment declines continue.
After board questions about specific line items — including student activities revenue sources, the composition of special education and transportation funding and the community‑education fund reserves — the board voted to adopt the budget. The motion passed on a voice/roll‑call tally recorded as 5 in favor and 1 opposed.
Board members praised staff for the level of detail in the budget book. Directors stressed ongoing monitoring of enrollment, reserves and capital projects and noted the board’s plan to transfer $250,000 into an assigned curriculum fund this year as part of a multi‑year strategy to fund curriculum work.
