Board approves 2024–25 audit after review; actuarial study shows $14.9M OPEB liability

Tina Burkholder, director of business services, introduced Mary Reddy of CliftonLarsonAllen, who presented highlights from the district's 2024–25 draft audit and financial statements. Reddy summarized general fund activity (revenues ~ $72.3 million; expenditures ~ $73.3 million) and noted a net positive change in fund balance of about $5.2 million and unassigned fund balance at $4.7 million.

After the audit presentation the board treated the report as an action item. The motion to approve the audit was moved by Jeff Hegley and seconded by Casey Root; the board approved the audit 6-0.

The board then heard an actuarial presentation on post-employment benefits from a consultant representing USI/USA Consulting Group. The actuarial valuation (valuation date 07/01/2024) placed the district's accrued liability for post-retirement medical, dental and life benefits at about $14.9 million, with approximately $1.8 million paid in benefits in FY25 and an irrevocable OPEB trust balance under $1 million. The consultant explained Minnesota Statute 471.61 requires employers to offer retired employees access to group medical plans at active employee rates, which creates an implicit subsidy that the valuation captures.

Board members asked about funding strategies, levy options and the percentage of liabilities that are unfunded. The consultant noted the district is largely unfunded for OPEB liabilities and can apply for an annual OPEB levy for most of the unfunded portion; the board received the actuarial information for planning but did not take additional funding action during the meeting.