School board approves $9M financing for special education program
The Woodbury School Board unanimously approved a $8.98 million financing package on January 16 to acquire and renovate a building for the district's special education transition program. The deal secured a favorable 4.03% interest rate, saving the district nearly $300,000 compared to earlier estimates.
The board's 6-0 vote on the Certificate of Participation Series 2025a represents a significant step forward for the district's special education services. The financing will consolidate the transition program into a single location, creating operational efficiencies while providing dedicated instructional space for students. The district came in under its authorized borrowing limit of $9.445 million, issuing $8.98 million instead.
Jody Zba, presenting the financing details, highlighted the favorable market conditions that allowed the district to secure better terms than anticipated. "The true interest cost of 4.03% is lower than the 4.33% we were estimating about a month ago," Zba said, noting that principal and interest payments will be nearly $300,000 less annually than projected a year earlier. Credit rating agency Moody's assigned the district an A2 rating, citing strengths including a strong local economy, growing enrollment, and voter support for education funding.
The board also unanimously approved the district's 2023-24 audit results, which received a "clean opinion" on all financial statements. Additionally, the board approved 2025 committee assignments and passed four policy updates in a 4-2 vote, though the latter decision proved contentious. Board members Eric Tesmer and Pat Driscoll voted against the policies, specifically objecting to Policy 102 on equal opportunity education. Tesmer expressed concern that the policy "opens a door to persons with male genes and male anatomy into women's sports in the school district as well as women's locker rooms," citing safety concerns for female students. Driscoll suggested the board "pull this back and fully understand what this means and what type of risk this brings to our district." Board Chair Katie Schwarz noted that these concerns had not been raised during earlier review periods, suggesting the objections came late in the approval process.
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Votes (4)
Sale of Certificate of Participation Series 2025a
Dissent: None
Moved by Pat Driscoll [25:42] · Seconded by Dana Ryan Clark [25:42]
The item detailed the successful sale of certificates of participation to fund the acquisition and remodeling of a building for the special education transition program. The district secured a 4.03% interest rate, lower than initial estimates, resulting in nearly $300,000 in savings compared to earlier projections. The district's credit rating was affirmed at A1 for general obligation debt and assigned A2 for this specific issue, reflecting strengths in local economy, growing enrollment, and voter support, while noting challenges in fund balance and future liability growth.
Fiscal Year 2023-24 Audit Results
Dissent: None
Moved by Pat Driscoll [27:01] · Seconded by Eric Tesmer [27:01]
Chris Blackburn presented a summary of the district's annual audit, stating that the district received a 'clean opinion' on its financial statements for the fiscal year 2023-24. The administration recommended acceptance of the comprehensive financial report and associated audit reports.
Board Committees for 2025
Dissent: None
Moved by Sharon Van [27:42] · Seconded by Melinda Dolles [27:42]
The Chair, Katie Schwarz, presented the 2025 board committee assignments. She noted that members had shared their preferences in December 2024, and the assignments were distributed via email on December 27th, 2024, without any subsequent questions or concerns from board members.
Proposed Policy Changes (101, 101.1, 102, 103)
Dissent: Eric Tesmer and Pat Driscoll voiced strong opposition and voted against the policies, specifically Policy 102.
Moved by Melinda Dolles [28:32] · Seconded by Sharon Van [28:40]
Superintendent Julie Nilson brought forward four policies for a second reading and approval, following their review at a January 2nd workshop. Policy 102, 'Equal Opportunity Education,' became a point of contention. Board members Eric Tesmer and Pat Driscoll voiced strong opposition, citing concerns that the policy, linked to MSBA standards and Minnesota Statute 12103, could allow individuals with male genes and anatomy into women's sports and locker rooms, potentially compromising the safety and fairness for female students. The Chair, Katie Schwarz, noted that these concerns were not raised during the initial review periods.
Notable Quotes (9)
we're mentioning that we're financing the acquisition and remodeling of the existing building to provide instructional services for students in the special education transition program and consolidating that program so that's going to gain some efficiencies there which is great
we were able to issue a lower debt amount and still Finance the amount that you need for your project costs so you'll see that we are issuing 8,980,000 and the board I believe had authorized up to 9,445,000 so we're under that amount
the true interest cost of 4.03% is lower than the 4.33 which we were estimating about a month ago so we were glad to see the interest rate come in lower than that estimate and as a result of that the principal and interest pay pays are almost $300,000 less than we were estimating a year ago
Credit strengths of the districts the strong local economy with above average resident income and full value per capita growing enrollment they see as a strength strong local support for Education through voter approved debt and operating levies
Credit challenges they still are um watching that fund balance and saying that it's improved but remains and I think it's slightly below we think we're right on the edge but um slightly below the a medians capacity challenges of course giving um growing enrollment which you're addressing
this policy uh in no uncertain terms opens a door to uh persons with male genes and male anatomy uh into women's sports in the school district as well as women's locker rooms
I place at a higher priority uh the feelings of safety that our female students are required and uh need to have
I think it's prudent for us as a district to maybe pull this back and and fully understand what this means and what type of risk this brings to our district
at that time neither of you mentioned any issues with this policy... you also did not mention having any issues prior to that board meeting
Ordinances & Resolutions (11)
Lease purchase financing for the special education transition program project.
Document to formally approve the sale of the participation certificates.
District's financial report for the specified fiscal year.
Additional audit reports alongside the main financial report.
Report detailing management's findings and recommendations.
Legal status of the school board policy.
Name of the School District policy.
Equal opportunity education policy, subject of significant debate.
Complaints (students, employees, parents, and other persons) policy.
Minnesota School Boards Association standards, which policies like 102 are aligned with.
Statute related to athletic programs and sex discrimination, informing MSBA standards.
Source document
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Other Topics from This Document
School District Financing and Capital Projects
Annual Financial Audit Review
Board Committee Assignments for 2025
School Board Policy Updates, particularly Policy 102
Superintendent's Report and Upcoming Events
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