StoryBuilding Bond Construction Progress UpdateAugust 21, 2026

Minnetonka Schools' Bond Projects Under Budget on Key Bids Amidst Rising Costs

Despite a significant increase in overall construction costs, Minnetonka Public Schools reports being approximately $1 million under budget for initial bids on its $85 million building bond projects.

Published Sep 29, 2026

Minnetonka Public Schools announced significant progress on its $85 million building bond projects, reporting that initial construction bids have come in approximately $1 million under budget. The update, provided during a recent meeting, offered a glimpse into the ongoing efforts to expand and improve school facilities across the district while navigating a challenging economic landscape.

If you take the combination of bid one and bid two, we are about a million dollars under our allocation of the bonds that were allocated for construction for that project, which is a good thing.
— Mr. Bruesewitt, District Official

This favorable start comes as welcome news for the district, which is committed to delivering on promises made to the community when the bond was approved. The $85 million bond is earmarked for various construction and renovation projects designed to enhance learning environments for students across Minnetonka.

Managing Rising Costs

Despite the early success in securing bids under budget, district officials acknowledge the inflationary pressures impacting the construction industry. The builders' cost index has seen a substantial increase since the bond referendum was initially developed, posing a continuous challenge to project management and budget adherence.

The builders' cost index went up 13.5% from June of '25 when you say, 'Yeah, let's go run the referendum,' until June of '26. But we're going to work hard to deliver what was promised and stay within our 85 million.

Other Topics from This Document

Financial Support for National Student Trips
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Perpetual Endowment Trust Fund Policy Review
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OPEB Trust Fund Update
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Votes (4)

Discussion on Financial Support for National Student Trips

No formal board action. Administrative decision to implement $200 per student stipend if no significant board opposition.

Superintendent Law and Mr. Schulz outlined the history of the district's financial support for national student trips, from full funding to current stipends. Due to rising costs and increased participation, a reduction from $300-$400 to $200 per student was proposed to sustain the activities budget. Board members discussed alternative strategies, including enhanced group fundraising and the potential for a need-based support system, recognizing the financial barriers some students face and the challenges of late trip qualification.

Review of Policies on the Perpetual Endowment Trust Fund

No formal board action. Policies presented for review; formal approval anticipated in September.

Mr. Bourgeois presented the first draft of policies for the Perpetual Endowment Trust Fund. Key policy areas included investment strategies, which would initially adhere to Minnesota Statutes 118A.04 for conservative, safe investments, with a long-term goal to transition to broader investment options under Minnesota Section 356A.06 for higher returns. Policy 736 addressed the acceptance and liquidation of diverse assets (stock, vehicles, real estate) into cash, and Policy 737 proposed criteria for distributing earnings, including a $250,000 annual earnings threshold before distributions to the general operating fund would occur to support 'programs of significance.'

Update on Building Bond Construction Progress

No formal board action. This was an informational update.

Mr. Bruesewitt provided a comprehensive update on the district's construction projects funded by the recent bond issue. Highlights included favorable bid results for Minnetonka Middle School West, coming in $1 million under allocation, and ongoing site preparation at various schools. He detailed specific projects such as the Aviation I relocation at the high school, reconfigurations at Excelsior Elementary, and planned additions/renovations at Minnewashta, Groveland, Scenic Heights, Clear Springs, and Deephaven elementary schools. The report acknowledged the significant challenge of 13.5% construction inflation but expressed confidence in delivering promised projects within the $85 million budget, aided by bond premiums and strategic fund investments.

Update on OPEB Trust Fund

No formal board action. This was an informational update.

Mr. Bourgeois presented an update on the OPEB Trust Fund, highlighting its unique revocable structure (chosen by the district over the irrevocable option used by most others) which provides flexibility for fund utilization. He detailed how the fund's assets have grown significantly, exceeding liabilities, enabling past withdrawals to fund projects like the Vantage Momentum building. Projections indicated continued growth in excess assets, even under conservative investment scenarios, positioning the fund as a powerful long-term asset for the district, potentially creating a 'double bubble' alongside the new Perpetual Endowment Fund.

Notable Quotes (12)

Absent anything significant tonight, we would implement the $200 per student for the current school year.
— Superintendent Law [00:00:19]

Discussion on Financial Support for National Student Trips

I guess, my worry is always that there is going to be a student who is unable to attend for financial reasons. And so I find myself kind of wondering, for a lot of students, that 200, it's great, but maybe not necessary. And so I'm just wondering, is there any precedent for doing a need-based type of application?
— Megan [00:09:47]

Discussion on Financial Support for National Student Trips

I like that idea, though, because even in elementary school field trips, when you pay the field trip fee, there's also an option to add an extra student or whatever. So I think there's some creative thinking around diverting funds to those in need would just be something to consider.
— Mr. Schulz [00:10:48]

Discussion on Financial Support for National Student Trips

If at some point in time, as we develop additional resources in this fund, it would behoove us to try to be able to get our perpetual endowment trust fund to be moved into eligibility to be invested in the same type of investments that our OPEB trust fund is able to be done.
— Mr. Bourgeois [00:19:10]

Ordinances & Resolutions (7)

Minnesota Statutes 118A.04Statute

Limits on investments for the perpetual trust fund.

Minnesota Section 356A.06Statute

Allows a financial advisor to invest in a broader range of investments for trust funds, similar to OPEB and State Board of Investments.

Policy 736Policy

Policy regarding acceptance and liquidation of gifts and donations for the endowment trust fund.

Policy 737Policy

Policy outlining the use of investment earnings from the endowment trust fund.

Perpetual Endowment Trust documentOther

Final legal document for the endowment trust, reviewed for approval.

2026A bondsOther

Bonds issued for construction projects, with a premium picked up.

THE DEEPHAVEN RECORDER

Minnetonka Schools' Bond Projects Under Budget on Key Bids Amidst Rising Costs

Managing Rising Costs

Other Topics from This Document

Financial Support for National Student Trips

Perpetual Endowment Trust Fund Policy Review

OPEB Trust Fund Update

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Infrastructure and Traffic Considerations

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Votes (4)

Notable Quotes (12)

Ordinances & Resolutions (7)

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