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Mahtomedi board approves preliminary 2026–27 budget, flags modest deficits and $15 million construction plan
Summary
The Mahtomedi Public School District board on June 22 approved a preliminary 2026–27 budget that projects small operating deficits in later years, maintains a fund balance above policy minimums and anticipates about $15 million in construction bonding with timing still to be determined.
The Mahtomedi Public School District Board of Education voted June 22 to approve a preliminary 2026–27 budget and a cleanup revision for the current year, while flagging modest projected operating shortfalls over the next several fiscal years.
Chief financial presenter Tim Erickson walked the board through revenue and expenditure assumptions and noted a planned FY26 deficit of about $795,000, a projected FY27 net position of roughly $130,000, a small FY28 deficit near $86,000 and a larger FY29 estimate of about $676,000. Erickson described the larger FY29 shortfall as “about a 1% reduction in expenses” and said the district has time to adjust assumptions before budgets are finalized.
The budget packet also updates several fund projections: food service revenue is forecast to climb to roughly $1.6 million, community education is expected to show about a $1.5 million balance in fiscal 2027, and the construction fund opens with a beginning balance near $15 million tied to bonding plans. Erickson said the district intends to issue roughly half of anticipated bond proceeds now and the second half later, with final timing and debt‑service decisions pending.
Board members pressed administration on risks tied to construction borrowing and operating deficits. Director Peterson asked whether the district could face the same post‑construction deficit pressures some neighboring districts experienced after large levies and bonds; Erickson replied that construction bond proceeds are restricted to capital use and cannot be used for operating expenses and that the district’s planned staffing increases tied to added space are modest (he cited an example of a half‑time custodian).
Erickson also reviewed the district’s reserve policy: the current projected fund balance at fiscal year end is about 9.47% of expenditures (above the 8% policy minimum), and the FY27 projection is roughly 8.8%. He told the board the district remains in a healthy position but will continue monitoring revenues, the Blue Ribbon Commission output and spending assumptions.
The board approved the preliminary budget on a roll‑call vote. Director Peterson moved the motion; Director Doman seconded. The board will return with any necessary revisions later in the year, including updates after the Blue Ribbon Commission meets in the fall.
What happens next: administration said it will continue to refine assumptions, present updates as state aid and other revenue details change, and bring final budget adjustments back to the board for approval before levy certification deadlines.
