Lakeville Area Public Schools — Transcript
Tuesday, June 9, 2026
Lakeville Arenas Annual Report and Budget
Intent to Sell Bonds for Middle Schools Expansion
Preliminary Fiscal Year 2027 School District Budget
Advisory Committee Assignments
Votes (4)
Lakeville Arenas Annual Report and Budget Discussion
Joe Berquist presented a positive financial picture, noting doubled revenue and record ice sales. He detailed upgrades to the pavilion rink, diversification away from sole reliance on ice rentals, and the launch of new community ice programs aimed at providing value and competing with 'kids-for-profit' groups. Rising utility costs were noted as a challenge, addressed by a 3.5% rate increase. Debate occurred regarding preferential rates for Lakeville residents vs. maintaining competitive pricing for all users, with the current model prioritizing resident access but not offering discounts. The arenas operate as a joint powers agreement and are self-funded through revenue generation, proudly not using public funds for operations.
Discussion on Intent to Sell Bonds for Middle Schools Expansion
Bill Holmgren and Shelby from Ehlers outlined the plan to sell $70 million in bonds, the initial phase of a larger $139.6 million referendum. The strategy involves multiple bond issuances to optimize interest savings, with the first sale planned for September, yielding funds by mid-October. Key points included managing transaction costs, adhering to IRS arbitrage rules, and flexibly adjusting bond sale amounts based on construction timelines and market conditions. The discussion also touched upon the experience of the Highview Elementary project and the ongoing soft costs of the current project.
Preliminary Fiscal Year 2027 Budget Presentation
Bill Holmgren presented the preliminary FY2027 budget, emphasizing a conservative projection aiming for an 8.5% unassigned fund balance. Enrollment growth has slowed, with graduating classes currently larger than incoming kindergarten classes. A significant portion (73%) of the general fund is allocated to salaries and benefits, with employee benefits seeing a 9.5% increase due to insurance costs and new legislation like the Family Medical Leave Act. The budget also accounts for $4.5 million for student device purchases. Detailed discussion occurred on special education expenditure growth, which comprises over half of the district's enrollment increase since 2015, prompting strategic planning for intervention specialists at middle schools.
Advisory Committee Assignments Discussion
The board reviewed existing advisory committee assignments and initiated a preliminary discussion for the upcoming school year. The goal was to ensure all required committees, such as the Multi-District Collaborative, have board representation and to distribute assignments more evenly among members. There was a preference expressed for fall assignments to ensure a collaborative start to the year for new committees, even though historically assignments were made in January. The role of board members in these committees was clarified as observing and sharing updates, rather than directing decisions.
Notable Quotes (17)
We are a joint powers agreement between the school district and the city. So we are a separate entity and I report to Michael and a few other board members and Carly. Um but we are we do not use any public funds to operate. It's all paid for through what we revenue that we generate.
Our ice rental revenue right now is um one of our biggest growth, but our programming has taken off this year. Um this is our second year of camps and we saw an increase of 100 and over $100,000 just in our ice ca- Mike camp. We're launching a whole bunch of new That's what we hired a full-time programming person, so we will see our revenues the diversified revenues, which is our learn to skate program, our programming, which went up 26,000 last year or this year it's going up or 67,000. Um it's going up on our probably be up $200,000 this year.
What I'm really excited about is we launched a new um community ice programs. So, I've kind of grown weary of We kind of got hit hard by the kids-for-profit groups that come in and make a lot of money off the kids in the summer time... So, just for an example, for $750 a year, hockey players are going to get our breakfast club training... right and it's a value of probably about 3,000 $3,600. If they were paying from the for-profit people.
if I'm a Lakeville community member ideally I would like to be able to pay a discount or a rate lower than someone from Apple Valley coming into my place... I wouldn't want them to be able to take my spot and and pay the exact same rate that I would pay at a different you know cuz cuz I'm I live here you know and my taxpayer [clears throat] dollars contribute to this and the people in our community fund the revenue and the expenditures.
I am very proud of where the in terms of the journey of ours. I think something we talked about in the meeting this past week when we were looking at this is the fact that this is a successful partnership with the city and we're above the bar here is something I mean, Joe I only heard you compliment previous managers, but you've done an amazing job in terms [clears throat] of growing um, this organization and being able to like you said, diversify and recruit my children to buy all your sessions.
instead of just going out there and borrowing the whole 100139.6 million at once, and then paying interest and all that, we will we'll tier it up. We'll borrow multiple times to save some interest costs. So, this will be our first borrowing here in September.
So, initially we had this set up as two bond sales. And so, since then we've gotten updated draft schedules from the construction firm, which makes it look like we could probably split it into three issues.
part of what we do today um and setting this up for your authorization at the end of June is to identify to MDE what needs to get levied. So, that really I would say nothing but that levee is set in stone.
Is there value in paying things like ahead of time? Like at least the not the labor, but at least the materials... I'm just imagining if you're going to buy it a year from now, there might be a 3.6% increase. And so it was like does it make sense? And but but again, if you take out the loan, you're paying interest on that for the duration of the by the time you need it or not. I don't know.
Four and a half, four I mean, they're continuing to go up. I don't think the Fed has um, give and you know, even with the change over, I don't think there's any indication that they're going to lower interest rates and so, um, you know, it sort of goes to the overall demand in the market at that time.
our projected unassigned fund balance percentage to be at 8 and 1/2% for June 30th of 2027. Um you see it's a little bit lower than we talked about a month ago as we really started fine-tuning what what's happening in this budget, but we feel very good and very I mean I this I don't think we'd ever come in below this.
73% of our general fund expenditures are salaries and benefits. And then the other thing that I noticed because you have this so broken down from 4 years previous, we can look at like the employee benefits started at 42.9, and they've grown to 54.7. So that's like about 30% close to um how much things have grown just on the benefits side, but then I think that brings out that um legislation that was passed with the um Family Medical Leave.
our enrollment growth from 2015 to 2024. And we grew by 1,072 students. But, our special education population grew by 502. So, we all know that special education is important. Um, and when I think about those numbers, how over half of our enrollment growth was connected to special ed. That doesn't mean that all of these students moved in that had disabilities. It just means that our special education growth was much moving more quicker than our overall enrollment. So, when I think about that, I go back to teaching and learning. Right? Because why are these students qualifying for special education? I don't think we're over qualifying students. I think that that's a direct correlation to what our students need, which is more intervention so that they're not qualifying for special education.
I am not as your superintendent stating that things are fine. Um and to your your request for information regarding um the the schedule on levies and and what the levy limit sits at and when that changes uh I'll I'll I believe I've shared that, but I will share it some more, uh and we will put it into the budget book, but this budget book till the next iteration of update. I'll get it to you sooner, uh another schedule like that, but I think the bigger work is what you've what you've identified, and that is what what are our needs with regard to teaching and learning, and and then we need to articulate what the research and evidence-based data might say about cause and effect with regard to what we're proposing.
UmDoes anybody have any thoughts right out of the gate of ones that you're you're like, I really want to stay in this one or I'm really interested in moving to a different different area or
Can we just create maybe clear expectations? Like Like if we are trying to more evenly divide, what is the expectation? That everybody try to be on two committees?
Yeah. Well, and I think it's also like an expectation if I can't come to one of the meetings that I were they're rescheduled, I try to find another board member to fill in for me cuz I think it's important that we have that if we're going to commit to be a presence on the boards that we need to have a board member there.
Ordinances & Resolutions (9)
Annual report and budget presented by Lakeville Arenas manager.
Recently passed bond referendum for middle school additions.
Upcoming resolution to authorize the first bond sale for middle school additions.
Preliminary budget for the school district for the fiscal year 2027.
District policy targeting a 10% unassigned fund balance.
State legislation impacting employee benefits costs for the district.
Agreement impacting salary and wage increases for staff.
Contract under which Small Wonders preschool staff were added, impacting financials.
Assessment used to identify students needing literacy intervention.