The Crookston School District Finance Committee met on Wednesday in the CHS conference room and reviewed the preliminary Audit for the upcoming academic year.
During the meeting, it was announced that the school district would suffer a spending deficit of approximately $336,000. That number is not finalized due to all expenditures and incomplete capital improvement plans.
Currently, Brady Martz is the district’s auditor. However, Crookston Public Schools Business Manager Blake Stoltman gave the committee a brief rundown of the Audit. “After reviewing the preliminary financial information with the auditors, it looks like we are projected to deficit spend $336,000,” said Stoltman, “The final numbers are not finished yet; there might be some adjustments down the road in regards to the audit because the audit is not complete.”
The committee discussed updates for the multi-use complex regarding the Daktronics scoreboard and details on the installment. Crookston Public Schools Superintendent Randy Bergquist explained to the board that there is a cost-effective way to pay for the scoreboard without school and city funding. The scoreboard cost is estimated at $430,000.
Daktronics has offered the school district five-year and seven-year lease agreements, and the board is looking at pursuing the five-year agreement, which would include a 6.4% interest rate.
“We’re looking at reaching out for advertising from businesses over ten years, and that would pay for the advertising on the scoreboard,” said Bergquist, “The complex will hold football games, soccer games, track meets, softball, and those events. We’ll hopefully be able to showcase the city of Crookston and the school district.”
The idea of businesses using advertisement on the scoreboard would ultimately pay for the scoreboard over the span of ten years. Bergquist also explained that businesses not located in Crookston could be players during the ten-year period if Crookston were to host section events and serve as a playoff venue. Companies that participate in the advertising can utilize 20-30-second advertisement videos that can also air on the digital scoreboard.
“This video board is something that no other school district has in northwest Minnesota,” said Bergquist, “This will be the cream of the crop, and this will be a great opportunity to advertise and showcase Crookston.”
The committee came up with an annual charge to the district in the amount of $15,000 for the companies to pay for the ten-year period, which relates to naming rights, press box rights, and partnership.
Other updates for the multi-use complex discussed during the meeting were the bathroom, concession stand, and landscaping bids that the school board has not yet approved. “The landscaping will be on the next board agenda, but we had some company bids that were not local,” said Bergquist, “We did not take those bids and contacted locally, and it looks like we have local companies that have put in bids. We have businesses here, and their kids go to school here, and their taxpayers. So why wouldn’t we use local businesses?”
The current front running bids for the bathroom installation are in the amount of $394,000, and the chain link fence installation is in the amount of $72,000. Bergquist also suggested to the board that the concession stands project could be done through CHS students who participate in the career and technical education program in hopes that it would be cost-effective and give students hands-on experience.
“I think it would be a great idea to have our students utilize and use any kind of skills that will help them in what I call the second phase of their life, which is high school,” said Bergquist, “So when they graduate from high school, they will have the skills to compete in a global economy.”
The committee ultimately denied the suggestion due to liability concerns, and they feel that it would be better if a company is charged with the responsibilities of the installation and design of the concession stands.
During the meeting, an enrollment update was given from Highland Elementary School and the middle and high schools. According to the MARS report received on October 1, Highland has had 23 new students enrolled, and the middle school/high school has had seven more registered since the first day of school.
The committee also discussed the official Auditor report meeting date to take place the same day as the Truth and Taxation date, which will be held on Monday, December 11. The Auditor Report will occur at 5:00 p.m., and the Truth and Taxation meeting will follow at 6:00 p.m.
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