Watertown School District previews $116.6 million preliminary FY27 budget, schedules July public hearing

Watertown School District 14-4 administrators presented the preliminary fiscal year 2027 budget totaling $116,617,894, a decrease of 3.66% from the prior year, at the board’s May meeting. The general fund proposal is $30.6 million, a 3.31% drop, and the district projects a 1.4% increase in state aid and enrollment of about 3,340 students.

Administration said salaries and benefits will remain the largest share of general fund spending at about 84 percent, followed by purchased services and supplies. The capital outlay fund is proposed at $10.1 million, a 46% decrease from the previous year, a drop officials attributed to completion of major building projects such as the diesel expansion and athletic complex. Lake Area Technical College represents roughly 45% of the district’s overall budget and will operate with a projected decrease of 8.03% in its primary operational budget.

Planned capital work cited in the presentation includes air-conditioning projects at Jefferson and Lincoln elementary schools, fleet bus purchases, and site improvements including upgrades to the Jefferson parking lot. The administration said the proposed budget anticipates using $83,000 of cash on hand while maintaining a fund balance above the board’s 15% reserve goal. The district projects the capital fund’s ending balance near $2.2 million (about 25.9% of projected expenditures).

Board members asked about the drivers of the year-over-year decrease; administration said the primary reason is the wind-down of large building projects and expiration of related CO (certificate of obligation) funds. The preliminary budget documents are posted on the district website, and the board set a public budget hearing for July 13 at 5:00 p.m., when the fiscal year 2027 budget will be presented for final review and adoption.

The board did not adopt the budget at the meeting; the hearing on July 13 is the next scheduled procedural step.