TOWER — Facing tightening cash flow as it approaches statutory operating debt, the St. Louis County School Board on Tuesday approved a $2 million line of credit with Frandsen Bank to ensure the district can meet its monthly obligations while waiting for delayed revenue streams.
Finance manager Kim Johnson said the move is intended as a short-term safeguard rather than long-term borrowing.
“Our spring taxes don’t come in until May and June and so we need kind of a little bridge there between now and when the taxes come in for the second half,” Johnson said.
The district’s expenses average about $3.2 million per month, driven largely by payroll and benefits, while revenue from state aid and property taxes arrives unevenly throughout the year.
“We spend $2 million a month just in payroll. Then we’ve got insurances and everything else that we have to pay. So, we’re probably close to $3.2 million every month. And so, the timing of when funds come into the district is really, really, important,” Johnson said.
Under the agreement, the district can draw on the line of credit as needed but must repay any borrowed funds within 45 days under state law. Johnson emphasized that the district may not need to use it at all.
“We will not take it out if we don’t need it,” she said.
Board member Jarrett Bundy, participating remotely by phone, prompted a broader discussion about cost-saving measures as the district prepares for deeper budget decisions in the months ahead.
Bundy suggested the district consider closing its administrative offices in Virginia and relocating operations to available space at Northeast Range School in Babbitt.
He said the move could generate significant savings if the current building were sold.
“If it was sold it would be worth, I remember, close to a half a million dollars savings,” he said.
Bundy also floated ideas about reducing administrative costs by redistributing duties among district office staff and potentially shifting some responsibilities to staff at individual schools, describing his comments as exploratory.
“I’m just spit-balling here,” he said. “Are there ways to cut?”
Other board members and administrators cautioned that many reductions have already been made and that additional cuts could strain existing staff.
“We’ve kind of combined, we’ve cut, we’ve given multiple jobs. Pretty soon they’re going to fail,” said board member Ron Marinaro.
Superintendent Reggie Engebritson said the district has already streamlined operations in recent years.
“I really feel like we’re a well-oiled machine right now that people are connecting and clicking and people are stepping up,” Engebritson said.
The board also approved a temporary expansion of the district’s retirement incentive, a move intended to reduce long-term personnel costs by encouraging eligible staff to retire early.
The one-time change allows qualifying teachers to receive the equivalent of four years of benefits instead of two during a limited window. Johnson said the incentive will be funded through the district’s levy authority rather than its general fund.
“It won’t be any additional cost to the district. It’ll come up on our levy,” she said.
Director of Teaching and Learning Kristi Berlin said interest in the program appears limited.
“I think it was only about a handful,” Berlin said.
While much of the meeting focused on finances, Tower-Soudan Elementary Principal Crystal Poppler highlighted a year of expanded programming that has improved student attendance.
“We have seen super increases in our attendance this year — we have much lower chronic absenteeism,” Poppler said.
Poppler attributed the improvement in part to the district’s four-day school week but said a stronger emphasis on student engagement has also played a key role.
The school has expanded hands-on learning opportunities, including Indigenous education programming, outdoor activities, and student-led events. Fifth and sixth grade students participated in wild rice processing at Nett Lake and attended Indigenous Youth Day at the Ely Film Festival, while younger students have spent more time learning outdoors in the school forest and through other activities.
A grant-funded cross-country ski program has also been a highlight. With support from local donors and organizations, the school purchased 45 sets of cross-country skis and established trails on the former football field.
Students have also taken the lead in designing school activities. Using a $5,000 Youth Voice grant, a group of students organized a Winter Olympics event featuring a range of outdoor competitions.
“We were going to have our own Olympic Games and so we spent a Friday, they had stations, we had sock speedskating and we did curling and we were out skiing and snowshoe races and bobsledding and we just had a lot of fun and it was all student led,” Poppler said.
In other action, the board approved its formal response to the American Indian Parent Advisory Committee after the group issued a finding of nonconcurrence related to the district’s Indian Education program.
The response, included in the board packet, outlines several areas where the district acknowledges the need for improvement, with communication emerging as a central concern. District officials pointed to ongoing efforts to improve coordination between staff, families, and the advisory committee, particularly in how information is shared and how concerns are addressed.
The document also highlights steps aimed at strengthening cultural programming and increasing student engagement, including expanded partnerships and continued support for Indigenous-focused learning opportunities already underway in the district’s schools.
While the board did not engage in detailed discussion of the response during the meeting, the document signals an intent to address concerns raised by the advisory committee and to continue refining the district’s approach to Indian Education moving forward.
The board also approved a cooperative sponsorship agreement that will allow North Woods students to join the Chisholm baseball program this spring due to low participation numbers locally.
Members also approved continuation of the district’s Q-comp program, a state-funded initiative that provides stipends and support tied to professional learning communities and student achievement goals.
The board concluded the meeting with a series of routine personnel actions, including hires, resignations, retirements, and the annual non-renewal of probationary teachers. Those non-renewals are a standard yearly action that does not reflect final staffing decisions for the coming school year, as budget-related determinations are still underway.