StoryPreliminary Budget for Fiscal Year 2027June 24, 2026

School Board Approves Preliminary FY2027 Budget

Stillwater Area Public Schools' preliminary budget for the 2027 fiscal year maintains a stable fund balance while addressing strategic spending and staff compensation.

Published Aug 10, 2026

The Stillwater Area Public Schools Board unanimously approved the preliminary budget for Fiscal Year 2027 (FY2027) during its meeting on January 7, 2025. The budget outlines nearly $156.9 million in both revenue and expenditures for the general fund, with no planned change to the overall fund balance.

The financial plan provides a framework for the district’s operations, capital projects, and staffing for the upcoming fiscal year. Key components include the utilization of bond proceeds for building construction and adjustments to administrative structures.

The general fund is just shy of 156.9 million, both in the revenue and the expenditures. So there is no planned change to fund balance.
— Marie, District Finance Representative

Further details presented indicated that building construction revenue is primarily generated from interest within existing construction funds. The district plans to strategically utilize more of its bond proceeds carried over from the current fiscal year. This planned spending of restricted fund balance will appear as a negative to the fund balance in this specific area but reflects ongoing capital investments rather than a deficit.

We are planned spending those restricted fund balance for the bonds for our next year.
— Marie, District Finance Representative

Administrative Adjustments and Personnel Contracts

As part of the budget cutting process, we’ve done some readjusting with the administration, and special services will now fall under the umbrella of our chief academic officer, who's Caitlin Willis.

Other Topics from This Document

Administrative Restructuring and Staff Acknowledgment
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Long-Term Facility Maintenance Plan
Nutrition Services Master Contract Approval
School Board Member Election Resolution
Q-Comp Annual Report Approval
Closed Session for Real Estate

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Votes (7)

Superintendent's Report: Acknowledgment and Restructuring

Information item, no formal vote.

Dissent: None

Superintendent Funk acknowledged Paul Lee's retirement after serving as Director of Special Services since 2013. Due to budget cutting processes, Special Services will now be overseen by Chief Academic Officer Caitlin Willis. Board members expressed appreciation for Paul Lee's professionalism and support, particularly in policy matters.

Approval of the 10-Year Long-Term Facility Maintenance Plan

Resolution passes (Yes votes: Director Chrispich, Director Kelsenberg, Director Lawler, Chair Sherman)

Dissent: None

Moved by Sarah [5:34] · Seconded by Director Kelsenberg [5:42]

Mark presented the 10-year facility maintenance plan, outlining projects specifically for fiscal year 2028. He clarified that the approval includes the MDE application, revenue projections, a statement of assurances, and a school board resolution, noting the plan is fluid and will be updated annually, with the primary action tonight focused on FY2028.

Approval of the 2025-2027 Nutrition Services Master Contract

Motion passes (Unanimous 'I' vote)

Dissent: None

Moved by Chair Sherman [10:49] · Seconded by Sarah [10:55]

Chris presented the key highlights of the new Nutrition Services Master Contract, including step movement each year, a 2.25% wage increase with a market adjustment, updated medical insurance language, new longevity pay at 5 years for staff retention, and adjustments to short-term and long-term disability aligning with Minnesota paid leave. The agreement was confirmed to be within board parameters and received positive feedback from the negotiating team.

Resolution Relating to the Election of School Board Members

Resolution passes (Yes votes: Director Chris Fitch, Director Kelsenberg, Director Lawler, Director Parker, Chair Sherman)

Dissent: None

Moved by Chair Sherman [13:17] · Seconded by Director Lawler [13:22]

This item involved the standard approval of a resolution concerning the election of school board members, fulfilling a procedural requirement.

Approval of the 2026-2027 Preliminary Budget

Motion passes (Unanimous 'I' vote)

Dissent: None

Moved by Chair Sherman [17:49] · Seconded by Dr. Kelsenberg [17:59]

Marie presented the preliminary budget for fiscal year 2027 across all funds. The general fund showed approximately $156.9 million in both revenue and expenditures with no planned change to the fund balance. Food service projected a slight increase in fund balance, community service a slight decrease, and building construction anticipated utilizing bond proceeds leading to a planned decrease in restricted fund balance. Debt service levied at 105% and custodial funds remained stable.

Amendment to Agenda and Approval of 2026 Q-Comp Annual Report

Agenda Amendment Passes (Unanimous 'I' vote); Q-Comp Report Approval Passes (Unanimous 'I' vote)

Dissent: None

Moved by Chair Sherman [20:25] (for amendment), Chair Sherman [21:28] (for approval) · Seconded by Dr. Kelsenberg [20:39] (for amendment), Sarah [21:32] (for approval)

Dr. Funk requested an urgent amendment to the agenda to add the approval of the 2026 Q-Comp annual report. The report was presented on June 2nd, 2026, but its approval was inadvertently left off the current meeting's agenda, and board action is required by June 30th for submission to the Minnesota Department of Education. The board voted to amend the agenda and then approved the report.

Motion to Enter Closed Session

Motion passes (Unanimous 'I' vote)

Dissent: None

Moved by Director Lawler [24:40] · Seconded by Sarah [24:45]

The board moved to enter a closed session in accordance with Minnesota Statute 13D.05 Subdivision 3C.3, which permits such sessions for developing or considering offers to purchase or sell real estate property.

Notable Quotes (12)

The only thing I I have tonight is I want to acknowledge the years of service of Paul Lee, who has been our director of special services uh since 2013, and as part of the budget cutting process, we've done some readjusting with the administration, and special services will now fall under the umbrella of our chief academic officer, who's Cait- Caitlin Willis.
— Superintendent Funk [0:46]

Superintendent's Report: Acknowledgment and Restructuring

Yeah, I would say the board would echo those comments as well, and um he will definitely be missed. I know policy he's done phenomenal things with for the board, so thank you for that.
— Board Member [1:50]

Superintendent's Report: Acknowledgment and Restructuring

Tonight, as part of the MDE application in your packet, we'll see those same two things that we have on the screen is our 10-year plan that's color-coded by project as well as the project specific list, the same thing as last meeting. Now, we have four four new attachments that are part of the MDE packet that we need is the LTFM, our expenditure application, our revenue projection, a statement of assurances that kind of says we're going to get the projects done and we'll do them on time, and then a school board resolution, and then meeting minutes for adopting the 10-year plan.
— Mark [3:30]

Approval of the 10-Year Long-Term Facility Maintenance Plan

So, basically, we're adopting a 10-year plan, but it's really the FY 2028. We'll come back here to talk about FY 2029 and a new 10-year plan here next year at this time.

Ordinances & Resolutions (13)

10-Year Long-Term Facility Maintenance PlanPlan

Comprehensive plan for facility upkeep over a decade, with annual updates.

MDE applicationOther

Application related to the Long-Term Facility Maintenance Plan for the Minnesota Department of Education.

LTFM expenditure applicationOther

Specific application detailing planned expenditures for the Long-Term Facility Maintenance.

revenue projectionOther

Financial forecast related to the Long-Term Facility Maintenance Plan.

statement of assurancesOther

Document assuring the completion of projects related to the Long-Term Facility Maintenance Plan.

school board resolutionResolution

THE LAKE ELMO RECORDER

School Board Approves Preliminary FY2027 Budget

Administrative Adjustments and Personnel Contracts

Other Topics from This Document

Administrative Restructuring and Staff Acknowledgment

Long-Term Facility Maintenance Plan

Nutrition Services Master Contract Approval

School Board Member Election Resolution

Q-Comp Annual Report Approval

Closed Session for Real Estate

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Long-Term Facilities Planning

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Votes (7)

Notable Quotes (12)

Ordinances & Resolutions (13)

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