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Wayzata presents preliminary 2025'26 budget; enrollment growth cited as main revenue driver
Summary
Finance Director David Draskovich presented Wayzata Public Schools' preliminary fiscal 2025'26 budget Monday, saying enrollment growth is the largest single revenue driver while also flagging risks from special-education funding, transportation reimbursement changes and pending negotiations.
Finance Director David Draskovich presented Wayzata Public Schools' preliminary budget for fiscal year 2025'26 at the board work session Monday, outlining revenue and expenditure assumptions, enrollment projections and risks to the district's financial outlook.
Draskovich told the board the budget uses a projected enrollment of 13,186 students for 2025'26, up from a revised FY2024'25 figure the presentation cited as 12,760 (the transcript text reported 12,076 and an ``increase of 426'kids'''; the presentation emphasized a 426-student enrollment increase driving revenue growth). He said that enrollment growth drives roughly $3.1 million of the preliminary revenue increase and that overall the state general-education formula was assumed to rise 2.74% for 2025'26.
Key revenue assumptions included a 4% increase in property-tax levy capacity, a 2.74% increase in the general-education formula, and an assumption of flat federal funding for budgeting purposes. Draskovich noted district leaders intentionally used conservative federal assumptions because COVID-era dollars had ended and federal allocations remain uncertain.
On the expenditure side, Draskovich said salary and benefits account for roughly 71% of general-fund spending and that several cost drivers were assumed: health-insurance premiums up about 7%, special-education costs projected to increase (the presentation used a 10% increase figure due to projected needs), a 6% budget increase for transportation, and a modest rise in utilities. He said the district is negotiating multiple employee groups and is modeling conservatively on labor costs.
The presentation highlighted a long-term-facility-maintenance (LTFM) adjustment of about $8.8 million carried forward from earlier years; that restricted fund balance is accounted for separately in the district's finances. When LTFM is excluded, the prelim budget projected adding roughly $2.93 million to the unassigned general-fund balance for 2025'26.
Draskovich gave fund-specific details: Wayzata Caf—s (food service) revenue and meal sales were projected to rise with enrollment and program changes, and the district planned to invest in a new freezer at the high school; community-education (Fund 4) was budgeted as fee-based with steady growth and a projected operating surplus. Debt service projections reflected scheduled principal increases and declining interest expense in the coming year.
Board members raised questions about special-education cross-subsidy aid and the risk that state-level policy changes could reduce that aid if the legislature does not secure the reductions cited in materials. Draskovich and others said the district could face revenue pressure if the state reduces cross-subsidy aid or if transportation- or special-education-related reimbursements decline; board members and staff discussed conservative hiring plans and continuing monitoring of enrollment and legislative changes.
No formal vote on the budget took place during the work session; board members were informed the preliminary budget would be on the agenda for the special/regular meeting that followed the work session.
