Northfield board approves revised 2025–26 general fund budget with roughly $1.9 million surplus

The Northfield Public School Board voted Jan. 12 to approve a revised 2025–26 general fund budget after a detailed presentation by the district’s director of finance, Val.

“I'll just say we ended 24‑25 with 15.3% unassigned fund balance, which is above the goal,” Val said during the presentation, and later told the board the audited results and contract settlements produced a revised budget surplus “of about $1,900,000.” The board then voted to adopt the revised budget, which the motion described as having revenues of $70,171,484 and expenditures of $68,208,704.

Why it matters: the revision reflects final audited financial data, a settled contract with the Northfield Education Association, updated October 1 enrollment counts and several one‑time grant adjustments. Val told the board that a sizable onetime increase in special‑education revenue—driven by how federal funding was applied—accounted for a significant portion of the revenue uptick.

In the presentation, Val outlined key drivers and assumptions in the district’s multi‑year forecast: enrollment remains an important revenue driver (Val said enrollment accounts for roughly 70% of total revenue), health insurance costs tied to the teacher contract will add pressure, and the district is tracking the new Minnesota paid‑leave tax in payrolls. She also noted the district secured an $80,000 cybersecurity grant to offset recurring subscription costs for a 24/7 network monitoring service.

Board members asked detailed questions about the demographic inputs used in enrollment projections, including whether Rice County birth rates or Dakota County birth records would change the district’s kindergarten projection. Val said the district relies on five‑year trend data and estimated Northfield receives about 32%–36% of Rice County births.

What the board decided and next steps: the motion to approve the revised 2025–26 general fund budget was moved by Corey and seconded by Amy; the board voted in favor. Val said the updated fund balance projection—now shown near 18.4% after the audit adjustments—gives the district several years of stability and reduces the frequency of priority‑based budget reductions.

The finance office will present additional budget components in February and spring meetings, including the operating and capital budgets and a potential public hearing should the board choose to pursue renewal of the operating referendum.