The focus of the Big Lake School Board November meeting was finances, as the board discussed the annual audit presentation, a possibility of reduced funding from the state, and a change in how school equity is invested. 

On a related note, the December school board meeting will be preceded by the annual truth in taxation meeting, during which area taxpayers can hear about how the district budget and tax levy is set and the impact it will have on their taxes in 2025. The truth in taxation meeting will be held Thursday, December 19 at 6 p.m. at the middle school, followed immediately by the regular school board meeting. 

Audit Presentation

Caroline Stutsman of BerganKDV presented the annual audit results to the school board. She gave the school district an unmodified (clean) opinion of their financials, which is the best opinion an auditor can give. 

There was one item of note the auditor found related to internal control. This is due to the school having a fairly small team to manage the school’s finances, where ideally there would be a larger team to ensure checks and balances. However, it was noted the district was taking extra precautions to mitigate any issues. This is a common problem with small school districts, and is not a serious issue.

While unable to attend the meeting, Board Member Derek Nelson submitted a statement that was read aloud thanking Business Manager Angie Manuel and her team for always doing a great job with the district’s finances.

Financial Report

The average enrollment has stayed stable over the past month, which is higher than originally budgeted. This means there is more funding coming into the schools, as the districts receive more state and federal funding based on the number of students in attendance. Since the enrollment has remained steady, Manuel adjusted the budget accordingly in anticipation of the extra funding that will be coming in. There are currently 23 more enrolled students than the original annual budget predicted.

To finish off the financial report, Manuel noted there would be a compensatory revenue formula change at the state level. This could impact the amount of funding that schools receive from the state. Currently, Big Lake receives about $1.6 million from this funding source.  Manuel said one of her peers from another district discovered that funding to their district could be cut by as much as 70%. Manuel made it clear to the school board that she did not believe the funding would be cut to the same extent in the Big Lake School District, but she wanted to have a few weeks to run the numbers and present her findings at a later date. Manuel also indicated she would be willing to further speak with the Patriot on her findings at a later time to better inform readers on the situation. 

Investments

The finance committee recently discussed increasing the amount of equity held in investments. Currently, the district policy is that no more than 20% of the school’s equity may be in an OPEB Trust portfolio. It was found the risk of having up to 40% of equity tied into the investment account would be roughly the same as the current 20%, so the policy was changed so the district could invest more money in the account and benefit from larger returns.

Open Forum

The youth wrestling coach spoke during open forum about a recent school board decision which made it so sixth graders would not be allowed to participate in the wrestling team going forward. It was of his opinion that sixth graders should be allowed to participate, as the athletic and social aspects of the sport both supported the growth of the younger students. He noted that many kids are nervous to move up to middle school, and the sport helped them to make friends and feel more comfortable. He also noted the program was especially helpful for the special needs students who participated.

In Other Business, the Board:

• Approved worker’s compensation to be available for school board members;

• Set the annual organizational meeting for January 6 at 6:30 p.m.