Click below this story for a link to a presentation about the school funding proposals.

By Karla Wennerstrom
Changes in how the Eden Prairie School District can levy funds could result in a smaller projected deficit, the School Board learned recently.
The district was anticipating a deficit of about $10.3 million for the 2010-2011 school year.
At its meeting Aug. 26, the Eden Prairie School District heard about two changes that might mean that shortfall is reduced to $7.3 million in 2010-2011.
The School Board made preliminary approvals on two proposals. The board is set to make a final decision on its budget for the next school year in December.
* The first change would levy $15 million for a trust for “other post-employment benefits,” which the school district had been paying for through the general fund. Now the school can set aside a trust to pay retiree medical/dental benefits (These benefits are no longer offered in employee contracts, but are still being provided to those whose contracts included them before the change.).
* The second change allows the school to levy alternative facilities bonds to cover deferred maintenance costs for things like roof replacement and heating and cooling. The size and age of facilities in the district qualify it for this change – making it one of 23 school districts in the state to qualify. The board plans to levy $11 million to fund the deferred maintenance costs for the next two years. Executive Director of Business Services Patricia Magnuson outlined a $55 million funding plan for maintenance projects over the next 10 years.
“This is a really disciplined approach to debt,” Magnuson said.
Both can be funded through board-approved bond issues, without going to the voters for approval.
According to the presentation to the board by Magnuson, the general fund expenditures would be reduced by $1 million per year. The facilities bonds would help replace the deferred maintenance levy authority that is running out, so the district “maintains our investment in facilities without jeopardizing operating fund needs,” Magnuson said in her presentation.
The changes were described as a “window of opportunity.”
The cost of the levies would be about $25 per year on a $300,000 home, Magnuson said.
The board is still anticipating seeking a referendum.
But, “the magnitude of all of that changes,” said Superintendent Melissa Krull.
Next the board is scheduled to set its preliminary levy on Sept. 23. The district must set its final levy in December. It is expected to sell the bonds in January.