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Holmen previews 2026–27 preliminary budget; officials describe $2.78M projected savings from proposed debt defeasance
Summary
Finance staff presented a conservative 2026–27 preliminary budget incorporating a $4.525M annual referendum exemption, a 3% base wage assumption, and a proposed debt defeasance expected to yield about $2.78M in interest savings; special education reimbursement was budgeted at 40% pending state finalization.
Executive Director of Finance and Operations Julie Hullman presented the district’s preliminary 2026–27 budget assumptions and a related debt defeasance update at the June 8 board meeting.
Hullman said the district included the recently approved operational referendum exemption of $4,525,000 per year for five years in revenue estimates. The preliminary assumptions also reflect a 3% base wage increase and a 5.4% group health premium increase. On special education reimbursement, Hullman used a conservative estimate of 40% for next year while noting DPI informed the district that final proration for the current year was 38.3%.
On debt management, Hullman described a defeasance plan for part of the 2025 bond issue that would place funds into an escrow to defease the final principal payment and reduce scheduled future interest; she gave an estimated interest savings of about $2,782,000 and said the transaction cost would be roughly $17,000. Funds for the escrow would come from the district’s current debt fund balance; the action to authorize transfer and establish the escrow will appear on future consent materials.
Hullman reviewed capital and project planning: reserves were included to start design and initial costs for a high‑school roof and track and to begin technology work (door and bus cameras). She estimated the district’s ending fund balance for June 30, 2027 at about $14.9 million (preliminary estimate) and emphasized timing and cash‑flow considerations for projects that will be performed over multiple fiscal years.
The presentation was informational; detailed budget adoption will proceed through the August proposed budget and an October public hearing and adoption.
