FAIRMONT - Fairmont Area Schools Superintendent Joe Brown wants the public to understand why the district is asking voters to approve an operating referendum this fall.
He spent Wednesday evening explaining to business people at the Fairmont Area Chamber of Commerce Bureau 14 meeting why an operating referendum is important, and what will happen if voters say no.
Brown says there are three main reasons the district needs more tax revenue from property owners.
First, to maintain what Brown calls a comprehensive K-12 school district. He said a comprehensive district includes more than basic curriculum, meaning it includes fine arts, all-day kindergarten, advanced placement classes, etc.
"Probably the nearest comprehensive school district to us is Mankato," he said.
Brown said if the operating referendum doesn't pass, cuts will have to be made to programs, including the ones mentioned above.
Secondly, Brown would like to expand curriculum offerings to students, including the possibility of reinstituting agriculture education, instituting elementary science curriculum and reducing class sizes.
Lastly, with the district at the mercy of legislative whim, Brown would like to see the unassigned fund balance increased from its current 20 days of operating expenses to 60 days - or from $1 million to $3 million.
"The state of Minnesota, right now, owes our district $5.3 million," he said. "When you are working on a $15 million budget and $5 million is withheld from you, that causes a cash flow problem."
The result is that the school district is required to borrow money - and pay the interest on it - to operate.
Brown told the group that the district is doing fine financially this year as a result of $1.5 million in budget cuts made last spring. The district also has seen increased revenue through more students than expected, meaning the district will balance its budget this year.
"We won't deficit spend this year," Brown said.
Under the operating referendum, voters will be asked to revoke the current $500 per pupil unit levy that has been in place for seven years and replace it with a $1,250 per pupil levy. In addition, a second question asks for $150 per student for technology.
By specifying funds for technology, the district is able to move those costs out of its capital fund and release dollars to take care of tuckpointing required at the high school. The 40-year-old building needs about $870,000 in mortar work.
The tax impact of the proposed operating referendum on a $100,000 house would be an increase of $208 over the current levy, plus $45 per year if the technology question passes.
The taxes would fall on residential and business properties, as well as on a home, 1 acre and a garage for agricultural land.
Comments Wednesday from the assembled group of business people focused on the new elementary school and how it is functioning. They also asked questions about reducing class sizes.
Because of an increase in enrollment, the district added kindergarten, first- and second-grade sections before the start of school. The fifth- and sixth-grade classes have an average of 33 students, while junior and senior high class sizes are sometimes even higher.
Brown is meeting with teachers this week to address class sizes.