Monticello previews budget, warns levy proceeds may not sustain programs long-term

At the June 1 Monticello Public School District board meeting, Director of Business Services Tina Burke Holder presented a preliminary general fund budget for 2026–27 and walked the board through two levy scenarios and the district's revenue and expenditure assumptions.

Burke Holder said the district projects roughly 3,860 students and anticipates a $4.3 million increase in revenue for the coming year, about $3 million of which the district attributed to renewed operating-levy revenue. She described two scenarios: renewing the existing levy (scenario 1), which staff said would not sustain the district's fund balance beyond a year or two, and revoking-and-replacing the existing levy (scenario 2), which the district modeled as an increase averaging about $25 per month on the example median home value cited and which the staff said would sustain programs for roughly four to five years.

On the expense side, Burke Holder said total expenditures were projected to increase by roughly $2.3 million, driven largely by salary and benefit projections; staff noted the budget remains labor-intensive, with about 80% of expenditures in salaries and benefits. The presentation included fund-balance forecasts showing an estimated unassigned fund balance of 8.9% in the 2029–30 estimate and roughly 2.68% in 2030–31 under current assumptions.

Board members asked for clarification about the district's unassigned fund balance policy and why the board uses an 8% minimum; staff responded that an 8% target reflects about one month of expenses and is intended as a cushion given enrollment and revenue uncertainty. Tina Burke Holder said the figures were preliminary and that the board will review a revised and full budget for approval at its June 15 meeting.

In routine business, the board approved a resolution to accept five donations totaling roughly $15,318 for library fundraising, scholarships and extracurricular teams; accepted annual membership in the Minnesota State High School League for 2026–27; and approved a resolution setting the affidavit-of-candidacy filing window for three open school-board seats (July 14–28, 2026). Those motions passed by recorded voice votes of 5 in favor and none opposed.

The board adjourned the regular session at 6:08 p.m. and scheduled a work session and a closed evaluation of the superintendent to follow. The budget presentation is scheduled for final review and a vote on June 15.