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Lakeville schools report close-to-budget FY25 results; auditors to present final opinion
Summary
District finance staff told the board the FY25 preliminary results will produce an unmodified audit opinion, modest underspending across categories, a 1% enrollment increase and a growing unassigned fund balance; concerns were raised about self-funded health claims and future special-education transportation revenue cuts.
District finance staff presented a preliminary fiscal year 2025 budget update and said auditors will deliver an on-site presentation within two weeks, followed by formal acceptance by the board. The presentation showed revenues and expenditures very near budget, an expected unmodified audit opinion and a modest increase in district fund balances.
Key numbers and findings: Finance director Bill Holmgren reported 12,140 current students in district classrooms with a 1% enrollment increase projected to finish the year near 12,150. The auditors are expected to issue an unmodified opinion; districtwide expenditures were 2.7% under budget for FY25 and revenues were within 0.08% of projections. The general fund’s unassigned balance rose and the district reported an increase in restricted capital funds because some projects underran and invoices were timed after fiscal year-end.
Concerns highlighted: Board members and staff flagged two areas of concern. First, the district’s self-funded health and dental internal service fund experienced a spike in claims over a three-month period that reduced that fund balance; staff said stop-loss reimbursements arrived late and that the district is monitoring claims weekly. Second, special-education transportation revenue is expected to decline next year; staff noted the district built an assumed reduction into the FY26 plan but said the change could mean roughly $500,000 less state reimbursement for that line in future years.
Other budget points: Property-tax collections were slightly below projections (0.2% under) because of timing; local sales and third-party revenue exceeded expectations owing to higher interest earnings and reimbursement for some special-education nursing services. Community-education fund balances fell because of staffing shortages that reduced paid enrollments in before- and after-school care. The district reiterated that fund-balance targets remain a priority; unassigned fund balance increased to about 6.9% of expenditures against a long-term target near 10%.
Board direction and next steps: Auditors will present final reports at an upcoming meeting; administration will continue monitoring the internal service fund and report to the board if additional actions are needed. Board members also requested more detailed quarterly dashboards tying goals and operational metrics to budget implications.
