District presents proposed 7.81% levy increase and explains OPEB and offsets
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Summary
District finance staff told the board the proposed levy for fiscal 2027 would show a 7.81% increase driven largely by an annual OPEB reimbursement; a taconite offset reduces the levy by about $688,000. The board held the required Truth in Taxation public hearing; no public comments were offered.
At the Truth in Taxation meeting, district finance staff presented the proposed levy that will be certified for collection in calendar year 2026 and applied to the district—s fiscal 2027 budget.
Cara (district finance presenter) explained that the proposed levy shows a 7.81% increase compared with the prior calculation and that much of the change reflects an annual OPEB (other post-employment benefits) reimbursement related to retiree health insurance. She said the district previously issued debt in 2009 to fund retiree health benefits, that the OPEB bonds were paid off in February 2025, and that approximately $1.6 million in retiree health costs spent in the prior year will now be reimbursed via the levy.
Cara also explained levy mechanics: property values, enrollment and debt service schedules determine most levy components; the district has limited discretion to change the levy beyond those inputs. She described a taconite production offset the district receives that reduces the levied amount to taxpayers by about $688,000 and noted that the net effect of various shifting levies and fund balances has produced a 2.9% net increase over two years when accounting for last year—s reductions.
Cara reviewed revenue shifts since the COVID era — federal COVID aid has waned and one-time state funding and reimbursements have supported recent projects such as curriculum purchases, buses and a solar project — and reported an ending fund balance near $15 million. The board opened the meeting for public comment, and none was offered; the board plans to take final levy action at a later meeting, as permitted by law.
Cara also noted that technical state adjustments (including a taconite offset and fund balance calculations) and enrollment forecasts will affect final taxpayer statements and that the district will certify the final levy at its scheduled December certification meeting.
The presentation included budget detail and line items for general levy, debt service and voter-approved levies; board members asked for clarification about OPEB acronyms and the fiscal treatment of retiree health costs during questions.