Chisago Lakes board hears business services update, discusses federal title funding uncertainty and long‑term facilities needs

The Chisago Lakes School District board received an update from the district’s director of business services on unaudited year‑end finances, preliminary audit scheduling and potential impacts from state and federal funding changes. The board also reviewed the district’s 10‑year long‑term facilities maintenance (LTFM) projections and a newly added state roofing program that would be bonded in fiscal 2027.

The director of business services said the district’s FY24–25 numbers are still unaudited and not directly comparable to prior years because receivables and payables were recorded differently in earlier reports; preliminary auditors are scheduled for an on‑site visit on Aug. 14, with field work Sept. 29–Oct. 2 and additional work Oct. 22–23. The director said July is an accelerated month for closing because many invoices and state reports arrive then.

Board members asked about a national issue affecting federal funds; the director said the district has been shown its Title I allocation but that the state or federal process is holding back Title II funds. The district uses Title II to pay for a class‑size reduction teacher at Taylor’s Falls (referred to in the meeting as Taylor’s Wells/Taylor’s Falls). The director said the district has included a placeholder amount in applications but that the exact financial impact for the coming year is not yet specified. The director also noted the district does not receive federal ELL (Title III) funding.

On facilities funding, the board reviewed an LTFM revenue spreadsheet generated from the Minnesota Department of Education (MDE). The director said the district receives approximately $1.3 million a year in LTFM funds (about $380 per pupil, per the report), and that roughly $420,000 of that is used for debt service on two existing LTFM bonds. After set‑asides the director described—about $240,000 annually for health and safety needs—the district is left with an estimated $640,000 per year for deferred maintenance across district buildings (including the bus garage). The director and facilities staff said that funding must be stretched across multiple buildings and recurring needs such as LED lighting, flooring, door frames, drinking fountains, curb striping and HVAC/inspection work.

Board members described the prioritization process: facilities staff compiled priorities from each building’s head custodian and principal, ranked projects (low/moderate/high) and scheduled them by summer windows. The board discussed how some projects—turf replacement, for example—are expected to recur in future years (the turf replaced in 2021 is estimated for replacement around 2031–2033). The district also keeps a reserve amount in the LTFM carryforward for larger items.

The director pointed out a line in the LTFM spreadsheet reflecting new state legislation on roofing that adds $4.8 million in FY27; that revenue would be bonded into a construction fund (fund 6) and tracked separately. The director said that work could begin after July 1 following normal procurement and state approval processes and that a narrative and supporting documents will be submitted to MDE as part of the application. The board asked procedural questions about bidding—staff said smaller projects this summer were procured via quotes (two quotes where allowed); for larger bonded projects staff will follow formal procurement rules.

The board thanked staff for keeping maintenance work moving with limited LTFM revenue and noted that the $380 per pupil figure has not changed in several years. The meeting moved from the facilities discussion to other agenda items after the board reviewed the LTFM materials and approved the 10‑year plan later in the meeting.

Ending: Board members said they will continue refining project lists and schedules and that staff will submit required documentation for the new roofing program to MDE ahead of FY27 work.