Board approves preliminary 2025–26 budget, modest meal price increases and calls capital project levy election

The Alexandria Public School District board approved three linked items at its June meeting: the recommended fees and prices for 2025–26, a preliminary district budget, and a resolution to pursue a 10‑year capital project levy by special election.

Fees and prices: Business official Trevor Peterson recommended limited changes. Paid meal prices would rise modestly (K–5 lunch $3.10 → $3.25; grades 6–8 lunch $3.25 → $3.50; high‑school lunch $3.90 → $4.00; small breakfast increases also proposed) even though universal free meals drove high participation this year. Peterson explained the increases are intended to protect food service operations if state or federal reimbursement rules change. The board also approved a change to class fees and proposed increases to some consumable‑supply classes. The most notable change was annual instrument rental moving from $40 to $114, a figure Peterson said matches the district vendor's reconditioning cost: "That is actually the price that Eckroth Music charges us for 1 instrument to get repaired, reconditioned every year." Board members said hardship accommodations would be available to avoid excluding students.

Preliminary budget: Peterson presented a preliminary 2025–26 general fund budget that remains subject to legislative outcomes and unsettled labor contracts. Using audited 2023–24 data and current projections, staff estimated about a $250,000 fund‑balance deficit for 2025–26 and projected a fund balance percentage dip from roughly 8.1% to 7.6% of annual expenditures (board policy target is 11–16%). Projected increases include roughly $770,000 in general education unrestricted aid (state formula) and about $1.7 million in salary/benefit cost pressure. Peterson described the budget as a working document; the board approved the preliminary budget by voice vote.

Capital project levy resolution: After reviewing options, the board adopted a resolution to call a special election for a capital project levy that would provide annual revenue for up to 10 years. Staff estimated the first‑year revenue at about $3,000,000 (calculated at 3.683% of the district's net tax capacity) and an approximate tax impact of $10 per month for the average $350,000 home in the district, noting the estimate has fallen in subsequent modeling runs. Uses described included building infrastructure, safety/security systems, HVAC and playground work, technology infrastructure, career‑tech spaces and parking lot repairs. The board instructed staff to submit the required MDE review/comment and to schedule a special election for Nov. 4, 2025 if the process proceeds. The motion to adopt the resolution passed by voice vote.

Votes at a glance: - Approve fees and prices for 2025–26: approved (voice vote). Key items: small paid‑meal price increases; instrument rental $40 → $114; adaptive bowling reclassified to Tier 1 activity fees. - Approve preliminary 2025–26 budget: approved (voice vote). Projected fund‑balance deficit ≈ $250,000; fund balance % projected to fall to ~7.6%. - Adopt resolution to call special election for capital project levy: approved (voice vote). First‑year revenue estimate ≈ $3,000,000; estimated homeowner impact ≈ $10/month on a $350,000 home; special election target 2025‑11‑04.

Board comments emphasized fiscal stewardship and the importance of maintaining core services as state funding and mandates shift. Peterson and other administrators noted many budget assumptions remain fluid pending state action and labor negotiations; the preliminary approval gives the district authority to operate and plan while details are finalized.

What's next: staff will submit review materials to the Minnesota Department of Education, finalize language and timeline for the referendum materials, and return to the board with any updates informed by legislative changes or additional modeling.