Orono School Board extends 10-year operating levy renewal, elects officers and approves routine financial items

The Orono Independent School District (ISD 278) Board of Education on Jan. 13 voted to renew the district's 10-year operating levy without a public referendum and approved a series of organizational and routine financial items.

The board approved a resolution to extend the operating referendum for another 10 years beginning fiscal 2027 and continuing through fiscal 2036. District staff said the operating levy provides roughly $2,245 per pupil and amounts to about $7.5 million per year, representing approximately 15% of the district's annual budget. "So if we were to go to the, the voters, the inflation factor would basically stall out," said Nick Tainter, the district's director of business services, describing a loss of purchasing power and an estimated roughly $100,000 annual shortfall tied to lost inflation indexing if the board sent the question to voters instead of renewing by board action.

Board members said the renewal has been discussed in multiple public sessions over the past months, including a formal hearing on Dec. 9 and prior presentations by Ellers Financial Services. The district noted voter-approved operating referenda historically date to the 1980s and that past renewals have passed; under recent Minnesota statute changes the board may renew an existing referendum at the same rate and term without another voter election. Board members and former district officials who attended earlier hearings urged the renewal as a matter of financial stewardship.

The meeting also completed the board's annual organizational business following the swearing-in of new and re-elected members earlier in the session. Sarah Borchers was nominated and elected chair; Todd Badson was elected vice chair; Laura Wallander was re-elected clerk; and Wendy Lonsgaard was elected treasurer. The board set compensation for the clerk and treasurer at $0 or the minimum required by law, consistent with district practice.

In addition to the levy and officer elections, the board approved a consent agenda including minutes of the Dec. 9, 2024 meeting, personnel recommendations, acceptance of donations totaling $65,249.36, collateral and treasurer's reports for November 2024, and multiple voucher and fund transfer items. Two newly sworn members abstained from the consent agenda vote, a point they raised as a procedural question because some consent items predated their service.

The board approved a number of routine, annual designations and contracts: official local depositories and investment depositories (including Wells Fargo, U.S. Bank and the Minnesota School District Liquid Asset Fund), the Laker Pioneer as the district's official publication, the law firm Squires, Walzberger & Mace as legal counsel, LB Carlson (formerly MMKR) as auditor, Ellers Financial Services as financial advisor, and Wold Architects & Engineers as architect/engineer of record. The board also authorized the superintendent and the director of business services to sign contracts and lease-purchase agreements within budget limits under Minnesota Statute 123B.52, subd. 2.

Several board members gave committee and community updates. The finance and facilities subcommittee reported continued prioritization of field and facility repairs, long-term roof planning, tennis court replacement options and funding sources that include donations, abatement bonds and Long-Term Facilities Maintenance (LTFM) revenue. Superintendent Christy Fletcher provided a district report with student and alumni highlights and an enrollment update; the packet also included a January enrollment summary.

The meeting concluded with approval of board committee assignments (with the addition of the Orono Coalition liaison) and a first reading of the proposed 2025—6 school board meeting calendar; the calendar was not acted on and will return for a vote after a two-week feedback period.

Votes at a glance - Operating levy renewal (extend existing operating referendum FY2027—6 through FY2036): outcome approved; roll-call vote recorded in favor. (Tally: yes 6, no 0, abstain 0.) - Election of chair (Sarah Borchers): approved (voice/roll call). (Tally: yes 6, no 0, abstain 0.) - Election of vice chair (Todd Badson): approved. (Tally: yes 6, no 0, abstain 0.) - Election of clerk (Laura Wallander): approved. (Tally: yes 6, no 0, abstain 0.) - Election of treasurer (Wendy Lonsgaard): approved. (Tally: yes 6, no 0, abstain 0.) - Clerk/treasurer compensation (set to $0 or state minimum): approved. (Tally: yes 6, no 0, abstain 0.) - Consent agenda (minutes, personnel, donations $65,249.36, treasurer's report, vouchers, EFTs): approved; two members abstained. (Tally: yes 4, no 0, abstain 2.) - Official local depositories and investment depositories: approved. (Tally: yes 6, no 0, abstain 0.) - Official publication (Laker Pioneer): approved. (Tally: yes 6, no 0, abstain 0.) - Legal counsel (Squires, Walzberger & Mace): approved. (Tally: yes 6, no 0, abstain 0.) - Renewal of surety bonds for employees: approved. (Tally: yes 6, no 0, abstain 0.) - Auditor (LB Carlson): approved. (Tally: yes 6, no 0, abstain 0.) - Contract-signing authorization (superintendent and director of business services under Minn. Stat. 123B.52): approved. (Tally: yes 6, no 0, abstain 0.) - Staffing resolution (annual staffing authorization for budgeting): approved by roll call. (Tally: yes 6, no 0, abstain 0.) - Financial advisor (Eller Financial Services): approved. (Tally: yes 6, no 0, abstain 0.) - Architect/engineer of record (Wold Architects & Engineers): approved. (Tally: yes 6, no 0, abstain 0.) - Board committee appointments (Jan—2025—Dec—2025) including addition of Orono Coalition liaison: approved. (Tally: yes 6, no 0, abstain 0.)

What the board said and what it means District staff and board members framed the renewal as a continuity measure that avoids an election expense and preserves inflation indexing tied to the referendum. Tainter said going to voters now would "stall out" the inflation factor and produce a recurring funding gap. Board members noted the levy accounts for about 15% of the district budget and that loss of the levy would create a substantial deficit; staff estimated the equivalent of roughly 75 teaching positions would be affected if the levy funds were lost.

The board characterized the other approvals as routine, annual housekeeping necessary to manage cash, legal advising and professional services. The consent agenda included several personnel and financial routine items; two newly sworn members raised a procedural question and abstained from that vote because the items predated their terms.

What happens next The operating levy extension takes effect beginning fiscal 2027 per the motion adopted; district staff will continue planning facility and budget priorities assuming the continued levy revenue. The proposed 2025—6 board meeting calendar will return for action after the two-week public feedback period. The board also signaled it will continue to refine the facilities priority list and funding sources over coming months.