Family December 2024 Knight Line

As we approach the end of December and the much-anticipated winter break, our schools are buzzing with the energy and enthusiasm of our students. The excitement in the air is contagious, a reminder of the joy this season brings. Amid the hustle and bustle, we want to take a moment to pause and share our heartfelt gratitude with you.

We are incredibly fortunate to have such engaged, committed, and supportive families. Your partnership enriches our schools, creating vibrant and nurturing environments where learning and growth thrive. As we look to the new year, we are excited to continue strengthening the connection between home and school, ensuring every child feels safe, valued, and respected.

On behalf of our staff and school board, thank you for sharing your children with us and for your unwavering support of our schools. We wish you and your family a winter break filled with laughter, warmth, and joy.

With gratitude,

Dr. Ann-Marie Foucault

The STMA FY2026 Budget Process and Timeline was approved by the school board on December 2. The budget process and timeline outline steps from now until the school board approves the FY2026 budget in June 2025. The process involves many stakeholders and many opportunities for stakeholder input.

We are grateful for the investments in education approved in the 2023 legislative session. However, even with the new funding, historic inflation and new mandates adopted in the 2023 session have challenged our already strained budgets. We are hopeful the 2025 legislative session serves as a foundation for years of underfunding and legislators will provide additional funding to restore Minnesota’s commitment to public education.

Please join us at our 2025 STMA Legislative Forum. We are inviting students, staff, families, community members, St. Michael and Albertville City Councils, and Wright County Commissioners. We have also invited Senator Lucero, Representative Hudson, and members of the House and Senate Finance and Policy Education Committees. The Forum is on Thursday, January 2 at 6:00 p.m. in the STMA Middle School West Auditorium. Click here for a shareable flyer with additional information. Please help us fill the auditorium by inviting your friends and neighbors to advocate for our needs.

STMA is proud to prioritize students above all else. According to the most recent independent audit, STMA stands out with exceptionally low administrative expenditures. Our commitment remains focused on putting resources where they matter most — in the classrooms. Take a look at the per-pupil administrative expenditure comparison from the latest audit to see how we’re keeping students first!

• Statewide = $1,300

• Metro = $1,320

• STMA = $592

Our partner in student transportation services, Vision of STMA, can be reached at 763-497-0102.

January’s Character Strong theme is **Perseverance**. This month, students will focus on the value of staying determined and pushing through challenges, even when things get tough. Perseverance is a key skill for success, both academically and in life, helping students build resilience and confidence. Through activities and discussions, students will learn strategies for setting goals, staying motivated, and overcoming obstacles.

Families can help reinforce this theme by encouraging students to keep trying, even when they face setbacks. Perseverance isn't just about working hard—it's about developing a mindset that embraces challenges as opportunities to grow. As a district, we are committed to fostering a culture of perseverance, where students are supported in their efforts to reach their full potential.

We are excited to announce the substitute teacher and substitute support staff training dates for the 2024-2025 school year. This training is essential for all new and returning substitute teachers and substitute paraprofessionals to ensure they are well-prepared and supported in providing high-quality instruction and support for our students.

Training sessions will be held on the following dates:

• January 21, 2025

• April 15, 2025

Each session will run from 3:45 to 5:15 p.m. in the boardroom, located at STMA Middle School West (enter via door B).

We encourage all substitute teachers and substitute paraprofessionals to mark their calendars and attend one of these sessions. Your participation is key to maintaining the excellent learning environment we strive to provide at STMA.

Thank you for your continued dedication to our students and schools!

All Minnesota school districts are required to engage a third-party auditor to conduct an independent financial audit at the conclusion of each fiscal year. For school districts, the fiscal year runs from July 1 to June 30, with the final audit report presented to the school board in December.

At the December 2 school board meeting, auditors from MMKR presented the FY2024 audit report.

MMKR issued an unmodified opinion on the district’s financial statements, the highest rating possible. The audit revealed no deficiencies in the district’s internal controls, no instances of noncompliance, and no findings related to the district’s compliance with Minnesota laws and regulations.

Highlights of the Audit:

• The budgeted Average Daily Membership (ADM) was 6,466, while the actual ADM reached 6,566—an increase of 100 students. At a time when many districts in Minnesota are experiencing declines in ADM, we are proud to report growth in our enrollment. ADM represents the average number of students enrolled per day over a specific date range or attendance period, and this increase reflects the strength and appeal of our district.

• General Fund: The unassigned fund balance grew by $3,236,221 to 23.7% (12% is the minimum set in SB policy). It is critical to maintain a healthy fund balance to maintain cash flow, retain programs, and cushion against the impact of an unexpected cost or funding shortfalls. The increase in the fund balance can be attributed to many factors including:

• Revenue was 3.37% higher than projected. This is due to:

• Investment earnings were a whopping 111.94% higher than expected due to high interest rates. This added $727,622 to our budget.

• “Other local sources” of revenue increased 19.42% or $613,863. This revenue increase includes admissions to events, activity fees, and more.

• Federal sources increased by 24.89%, or $435,010, due to a technology grant that was received late in the year.

• Expenditures were .97% lower than projected. This is due to:

• Salaries and benefits were .6% under budget due to underspending contract budgets.

• Purchased services were 2.82% under budget due to a number of factors including a mild 2023-2024 winter.

• Capital expenses were under budget by 6.46% due to the timing of when supplies were received.

• Food Service: The food service fund ended FY2024 with a fund balance increase of $867,078. This can largely be attributed to universal (free) meals. The ending fund balance of $3,177,316 represents a very healthy 66% fund balance.

• Community Service (AKA Community Education): Community education fund balance increased by $26,867. The increase to the fund balance was due to increases in program fees, tuition, and unfilled positions. The ending fund balance of $1,156,117 represents a healthy 22.5% fund balance.

• Next steps: The audited numbers will be used to revise the FY2025 budget, which will be presented to the School Board for action on February 3. We are proud of the positive outcome of the audit and the increase in our fund balance. However, it is crucial to maintain fiscal responsibility by considering the five-year financial projections, rather than focusing on a single year in isolation. Our funding is primarily driven by student enrollment, which is stabilizing. According to the most recent five-year projections, our fund balance is expected to decrease significantly in the coming years. As responsible stewards of taxpayer dollars, we will continue to carefully monitor both our short- and long-term budget.

Transparency and accountability are cornerstones of our approach to financial stewardship. Transparency means ensuring our community has access to clear, accurate, and comprehensive information about how funds are managed and allocated. Accountability reflects our commitment to responsibly using the resources entrusted to us, always prioritizing the success and well-being of our students and staff. By upholding these values, we foster trust and confidence within our community and affirm our responsibility to taxpayers.

The FY2024 audit reports are posted on the district webpage here. We encourage all stakeholders to review them, and we are happy to answer any questions or provide further clarification. Open communication and a commitment to integrity ensure we remain effective, responsible, and aligned with the needs of our community.

State Champion Swimmer Lily VanHeel

STMA senior Lily VanHeel was recognized for her state championship in the 100-yard backstroke.

Trimester 1 Courtesy & Respect Awards

The Board recognized the following Trimester 1 Courtesy & Respect award winners:

Freshmen: Malayna Kulas, Grady Robberson, Levi Nelsen

Sophomores: Isaiah Ophoven, Carson Miller, Jack Fisher

Juniors: Parker Schaben, Cail Jahnke, Keira Baker

Seniors: Gage Kloster, Ansel Herbes, Preston Karger

Outgoing School Board Member Gratitude

The Board expressed their appreciation to Member Kari Dwinnell for her service on the STMA School Board. She was presented with a plaque.

Truth in Taxation Hearing

Executive Director of Business Services Kris Crocker held this year’s Truth in Taxation hearing. The report included information on school funding, property tax levies, and the district’s budget. The report is required per MN Statute 275.065.

Superintendent Student Forum

Superintendent Dr. Foucault shared about her recent student forums held in each building.

Action on FY2024 Audited Financials -- Financial Management Report, Financial Statements, Corrective Action Plans

MMKR Auditor Bill Lauer reported on the District’s audit for FY2024. The district continues to be sound and stable and received a “clean” or unmodified opinion. The full report can be viewed in the district office or on the district’s website.

Action on Certifying 2024 Payable 2025 Levy

The final levy is a $2,826,105.20 increase over the prior year’s levy, which is an overall increase of 14.99%. The General Education Fund levy increased by $1,524,179.57 (20.78%). The Community Service Fund increased by $18,960.01 (8.77%). The Debt Service Fund increased by $1,282,965.62 (11.35%). Each levy category is defined in state statute and is largely based on student enrollment, age of buildings, and state-set formulas.

Action on FY2026 Budget Process and Timeline and February 3, 2025 Work Session

The Board approved the FY2026 budget process and timeline.

Action on STMA Legislative Platform 2025

The Board approved the drafted STMA legislative platform for FY2025.

Action on FYCC Addendum for 2024-25

The Board took action on an FYCC addendum.

Action on Facility Rental Liability Limits

The Board approved changing from a one-tier to a two-tier liability insurance requirement structure.

Action on EM-STMA Memorandum and Addition of High School Yearbook Advisor

The Board approved the addition of a high school yearbook advisor.

Action on Special Education Staffing

The Board approved the Special Education Staffing request of 1.5 FTE certified staff and 2.0 FTE support staff members.