StoryFY27 Proposed Budget Review and ApprovalJuly 21, 2026

Watertown-Mayer Board Approves FY27 Budget With Rare Deficit

Falling enrollment projected to cut roughly $350,000 in state aid as expenditures continue to climb, district officials told the school board.

Published Jul 30, 2026

The Watertown-Mayer Public Schools Board of Education approved the district's proposed fiscal year 2027 budget, a spending plan that carries a deficit driven by a projected drop of 46 students and rising costs, officials said during the board's meeting.

District finance official Mr. Netky told board members that average daily membership, the enrollment figure that drives state funding, is projected to fall to 1,377 by the end of the year, a decline of 46 students compared with the end of FY26.

Estimated end of year ADM projected to be 1,377, which is down 46 compared to end of year FY26. So in dollars, that's roughly 350,000 in less state aid than we had in FY26. So that's a big hit.
— Mr. Netky, district finance official

Netky said the combination of shrinking enrollment revenue and increasing expenditures produced a budget picture the district has not faced in several years.

So probably the first time we've had a deficit presented for approval in a while. But with those class or student enrollment dropping at 46 and expenditures continuing to rise, they've kind of crossed paths there in FY27.
— Mr. Netky, district finance official

The budget was among more than a dozen items approved unanimously by the board during the meeting.

Facilities costs also in focus

The budget discussion followed board action on a roofing bond resolution and a roofing bid award, both of which carry long-term financial implications for the district. Financial adviser Mr. Manazi told the board the bond was being structured to preserve flexibility for future facilities work.

Other Topics from This Document

Roofing and Facilities Maintenance Funding Strategy
Roofing Project Bid Approval and Implementation
District Policy and Handbook Updates
District Governance, Elections, and Staff Tenure
Educational Program Development and Staff Support
Community Partnerships and External Relations

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Votes (13)

FY28 Long-Term Facilities Maintenance Plan and Updated Roofing Bond Resolution

Unanimously Approved

Moved by Mr. O'Neal [00:33:41] · Seconded by Mr. Burns [00:33:41]

The board discussed and approved the FY28 LTFM plan, incorporating updated costs for the roofing project ($5,695,450). A key element was structuring the bond to ensure tax neutrality while intentionally preserving future debt capacity for potential indoor air quality projects up to $15,650,000. The plan aligns with MDE requirements, allows for state credit enhancement application, and sets parameters for the bond sale in July 2026.

Approval of Roofing Bid Resolution 26.19

Unanimously Approved

Moved by Miss Danielson [00:43:40] · Seconded by Mr. Felt [00:43:40]

The board approved Jackson Associates as the lowest bidder for the district-wide roofing projects, totaling $5,695,450. The contractor presented an aggressive schedule aiming for completion by November 2026, significantly earlier than the contractual September 2027 deadline. Discussions included mitigation strategies for potential classroom disruptions, noise, and safety concerns during school hours, as well as cost adjustments due to newly identified wet insulation. The board acknowledged Jackson Associates' past positive work with the district.

FY27 Proposed Budget

Unanimously Approved

Moved by Mr. Burns [00:50:49] · Seconded by Mr. O'Neal [00:50:50]

The board approved the FY27 budget, which projects a deficit spend of $423,071, primarily impacting the unassigned fund balance and bringing it close to the minimum 10% policy. Key factors contributing to the deficit include a projected 46-student decline in ADM (resulting in $350k less state aid), increased special education expenditures, and new costs from the Paid Family Medical Leave Act. Discussions acknowledged the challenge of rising expenditures against decreasing revenues due to enrollment.

Acknowledgement of Donations, Contributions, and Fundraising

Unanimously Approved

Moved by Miss Gatskco [00:54:19] · Seconded by Miss Danielson [00:54:20]

The board acknowledged and approved various donations totaling over $12,900 from community organizations. Notable contributions included funds for the Royals room, $7,571 from Resource Training and Solutions for floral design class equipment and a floral cooler, and multiple donations from the Royal Soccer Booster Club, WTO Lions Club, and American Legion Post 121 supporting unified sports and girls' soccer and basketball teams.

First and Only Read of District Wellness Policy 533

Unanimously Approved

Moved by Miss Gatskco [00:55:53] · Seconded by Miss Nton [00:55:54]

The board conducted a first and only read for Wellness Policy 533, driven by findings from a recent food service audit by the Minnesota Department of Education (MDE). The policy was updated to explicitly designate the district nurse, Miss April Gezinger, as the district wellness coordinator, aligning the policy with MDE's requirements.

Approval of 26-27 Parent Student Handbooks (Child Care and Early Childhood)

Unanimously Approved

Moved by Mr. O'Neal [00:59:43] · Seconded by Mr. Burns [00:59:44]

The board approved the updated parent-student handbooks for the childcare and early childhood programs. The childcare handbook included procedural changes and a new section on appropriate dress. The early childhood handbook's major change was the closure of Door 2 (the preschool entrance) for security reasons, directing parents to use Doors 1 or 4 instead, after discussions with instructors and parents.

First Read: Watertown-Mayer Facilities Handbook

Unanimously Approved

Moved by Mr. Felt [01:18:27] · Seconded by Miss Schultz [01:18:28]

The board conducted the first of two reads for a revised facilities handbook aimed at clarifying rules, improving cost recovery, and ensuring reasonable community access. The proposed changes address an annual $41,000 deficit in facility use by eliminating 'capped user' agreements and rebates, phasing in fee increases (e.g., $6/hour for elementary courts, $10/hour for high school courts), and streamlining the approval process. The new approach also emphasizes marketing higher-revenue events and will be discussed with local associations before final approval.

Notice of General Election (2026)

Unanimously Approved

Moved by Miss Gatskco [01:20:00] · Seconded by Miss Danielson [01:20:01]

The board approved a resolution for the general election in November 2026, which formally calls for the election of three board members to four-year terms. This is a standard annual process to prepare for upcoming board vacancies.

Notice of Filing Dates for Board Positions

Unanimously Approved

Moved by Mr. Felt [01:21:52] · Seconded by Mr. Burns [01:21:53]

The board approved a resolution outlining key filing dates for individuals interested in running for school board positions. The filing period runs from July 14th to July 28th, 2026, with a $2 filing fee due by 5:00 p.m. on the closing date. The district office will have new affidavit forms available for candidates.

Designation of District Official with Authority (Iowa)

Unanimously Approved

Moved by Mr. Burns [01:22:54] · Seconded by Miss Gatskco [01:23:01]

The board approved the annual resolution to re-designate Miss Heather Huan as the district's 'Identified Official With Authority' (Iowa). This re-certification is a routine administrative process.

Southwest Metro Long-Term Facilities Maintenance Resolution

Unanimously Approved

Moved by Miss Schultz [01:24:43] · Seconded by Mr. Burns [01:24:44]

The board approved the annual resolution for its contribution to the Southwest Metro Long-Term Facilities Maintenance (LTFM) account. As Southwest Metro cannot levy for its own buildings, its 11 member districts contribute proportionally based on their usage. Watertown's contribution increased this year due to a rise in its usage from 3.1% to 3.8%.

Southwest Metro Safe Schools Resolution

Unanimously Approved

Moved by Mr. Burns [01:25:40] · Seconded by Miss Danielson [01:25:40]

The board approved a resolution for its contribution to the Southwest Metro Safe Schools levy, similar to the LTFM resolution. Watertown's contribution increased slightly this year, aligning with its increased usage of Southwest Metro services (approximately 3.8%).

Recommendation for Tenure Status

Unanimously Approved

Moved by Miss Danielson [01:27:14] · Seconded by Mr. O'Neal [01:27:14]

The board approved tenure status for 10 staff members across the elementary, middle, high school, and CLC. This recognition is for teachers who have either completed three years of service in the district or one year of probation if previously tenured in another district, and who have been offered a fourth contract. The superintendent read the names of all recommended teachers.

Notable Quotes (19)

What you're really trying to do here is structure the roofing bond so that we can fit up to six 15.65 million and still remain tax neutral related to that debt decrease. And so what you're doing tonight doesn't obligate you to anything, but we're structuring the first bond so that you have space.
— Mr. Manazi [00:23:43]

FY28 Long-Term Facilities Maintenance Plan and Updated Roofing Bond Resolution

The goal for today is let's get the roof thing figured out and get that nailed down and structure the bond in such a way that it leaves us some room to address the stuff and so we don't lock ourselves into something that we're not able to do that. So that's the bigger picture.
— Mr. Schuler [00:30:57]

FY28 Long-Term Facilities Maintenance Plan and Updated Roofing Bond Resolution

Jackson Associates is the apparent low bidder... they did present a pretty aggressive schedule. The bid documents allowed work to start on anytime after July 1 of 26 and be complete by September 1 of 27. Uh giving them flexibility. Um they intend on completing everything uh by like the end of November of this year.
— Mr. Rear [00:37:05]

Approval of Roofing Bid Resolution 26.19

Numbers are slightly higher than what we originally budgeted. Uh during the bid process, uh Mr. Thompson with Garland ordered some infrared scans of the roof and unfortunately we discovered significant amount of wet insulation that has to be replaced though that wasn't included in the original budget amounts. So, but we did confirm when Mr. Thompson I spoke with Jackson uh we did confirm that um they fully accounted for replacing all of it in their in their number.

Ordinances & Resolutions (24)

FY28 LTFM planPlan

The Long-Term Facilities Maintenance Plan for Fiscal Year 2028, requiring board approval for state submission.

Revised roofing systems projectOther

A project included in the LTFM plan, with updated construction bid amounts.

Revised LTFM resolutionResolution

A legal document prepared by Peter Martin related to the LTFM plan and the roofing project.

10-year revenue projectionOther

A required spreadsheet from the Minnesota Department of Education (MDE) for financial planning.

10-year expenditure spreadsheetOther

A required spreadsheet from the Minnesota Department of Education (MDE) detailing anticipated expenditures.

Statement of assurancesOther

THE MINNETRISTA RECORDER

Watertown-Mayer Board Approves FY27 Budget With Rare Deficit

Facilities costs also in focus

Other Topics from This Document

Roofing and Facilities Maintenance Funding Strategy

Roofing Project Bid Approval and Implementation

District Policy and Handbook Updates

District Governance, Elections, and Staff Tenure

Educational Program Development and Staff Support

Community Partnerships and External Relations

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Other cost pressures

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Votes (13)

Notable Quotes (19)

Ordinances & Resolutions (24)

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