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Finance director outlines lease-levy structure as district absorbs Northern Lights Academy lease
Summary
Business manager Garrett Halkran told the Proctor board the district holds five leases that can be supported by the lease levy, described how per-pupil calculations affect the levy, and warned that costs tied to a new Garfield Building lease for Northern Lights Academy could raise the district's lease-levy obligation.
Garrett Halkran, the district's business manager, briefed the board on the lease-levy authority and how current and upcoming leases affect the district's levy capacity.
Halkran described five leases currently eligible under the lease levy: storage near the fairgrounds, part of the Proctor Area Community Center (PAC) located in the city building, the Peck Proctor Early Childhood Center, a parcel at Pike Lake used for student playground access, and a certificate-of-participation (COP) tied to a prior classroom-and-gym addition. He said some of those obligations will drop off in coming years, with the Pike Lake COP maturing in fiscal year 2028.
Halkran explained that state rules authorize the board to levy a per-pupil amount for lease obligations; he said the current statutory figure discussed in the meeting was "$212 per pupil unit," and that the board's authority translates to roughly $400,000 in levy capacity, of which the district currently uses about half. He also described a separate cooperative special-education lease levy (a separate $65-per-pupil levy) that supports the Garfield Building lease connected to Northern Lights Academy, which recently signed a five-year lease with Cloquet for that facility.
Halkran cautioned that these per-pupil calculations can create year-to-year swings depending on enrollment and the number of students participating in cooperative placements. Board members asked clarifying questions about how students move in and out of special-education settings and how that affects levy calculations.
The report closed with a reminder that the finance office will return with more detailed projections and that the board will monitor lease-levy changes as Northern Lights finalizes its lease terms.
