Pelican Rapids board approves long-term facilities plan and 2026-27 budget as state funding shifts squeeze district revenue

Pelican Rapids Public Schools approved its fiscal year 2028 long-term facilities maintenance (LTFM) plan and the proposed 2026-27 budget in a unanimous vote at the regular board meeting.

Mr. Martinez, a district staff member who presented the LTFM report, listed site-specific maintenance and safety priorities — including dugouts and backstop repair at the Carfield site, parking-lot crack sealing and sealcoating, new fencing by the elementary playground, a drainage and sidewalk regrade by Door 3, auditorium fire-marshall items and periodic epoxy-floor recoats. "We're well underway and we only have a little less than 3 months to get this stuff done," Mr. Martinez said, describing which work the district will complete in-house and what will be contracted.

The presentation explained how LTFM revenues are calculated: roughly $380 per adjusted pupil unit and an age-of-building factor. The district said its initial available LTFM revenue is about $370,000 but noted a portion of that is committed to debt service from 2014 bonds. The district reported it is projected to receive about $198,000 for fiscal year 2028 when levy and calendar interactions are accounted for.

Board members asked about roof planning; Mr. Martinez said the district sequences roof replacements on a multi-decade cycle and that elementary roofs and other priority roofs are being evaluated and budgeted for as part of the LTFM strategy. He added that legislative changes last year allow roof projects over $100,000 to be funded through LTFM but require strategic planning and state approval.

The treasurer's report placed the proposed 2026-27 budget in context: a projected starting general-fund balance of about $3.0 million, revenue of roughly $12.7 million and projected expenditures of about $12.66 million, leaving an estimated $3.1 million fund balance that keeps reserves near the board policy target of 22%–25%.

Mr. Martinez also highlighted recent state-level funding changes with concrete impacts on the district. Although the basic funding formula rose by an estimated 2.96 percent, the district said the removal of lunch-application counts from the compensatory revenue calculation reduced its compensatory revenue by about $23,000. "Add the lunch applications back into the equation. It's it's simple. Just add it back," Mr. Martinez urged as a talking point for legislators. He warned that unresolved task-force recommendations on compensatory revenue and special education could increase fiscal pressure on districts.

On personnel and routine items, the board acknowledged resignations and approved hires including Abby Nelson (elementary music) and Morgan Berg (elementary special education), accepted donations listed in the consent agenda, renewed the Head Start lease (reported at $8,000 per year) and authorized an engagement letter for the district audit.

The board voted unanimously to approve the LTFM plan, the proposed 2026-27 budget, the 2026-27 meeting schedule, membership in the Minnesota State High School League and official filing dates for the upcoming schoolboard election (July 14'28, 2026). Board members voting in favor were Andrew (mover on several motions), Brenda (second on the agenda approval), Stacy, Chris and Molly.

Administration also requested authorization to hire Site Logic to perform a broad buildings-and-grounds assessment to inform committees and long-term planning; the Site Logic assessment was listed on the consent agenda and approved by the board. Staff signaled next steps to form planning committees, survey students/staff/community members and translate outreach materials.

The meeting closed after routine business and an adjournment motion that carried by unanimous roll call. The board scheduled meetings for July 22 and Aug. 19 at 7:00 a.m., with additional planning and an August picnic noted in the calendar.