Watertown School Board Approves 2025-26 Financial Report, Maintains 22.9% General Fund Reserve
Reported byNortheast Radio SD
Read the full story at Northeast Radio SDAI-assisted summary
The Watertown School Board voted unanimously on October 13, 2026, to approve the district's annual financial report for the 2025-26 fiscal year, which ended June 30, 2026. Business Manager Heidi Clausen presented the audited figures. According to the article, the South Dakota Department of Education had already accepted and reviewed them. Vice President Kari Lohr made the motion and Board Member Jean Moulton seconded it.
The General Fund took in about $29.73 million and spent about $29.81 million, a shortfall of $81,457. It ended the year with a balance of $6,828,930, which Clausen said equals 22.91 percent of annual spending and stays within the board's target reserve. The Capital Outlay Fund dropped by $2,108,824 to $2,794,644 after $10.8 million in spending against $8.69 million in revenue. Clausen attributed this mainly to construction of the Allen Mitchell Athletic Complex and air-conditioning projects at elementary schools, and said it fits the district's five-year capital plan.
The Special Education Fund fell by $745,631 to $2,214,163, a reserve of 23.17 percent of its spending. Lake Area Technical College's fund grew by $2,506,330 to $8,890,631. The district also oversees about $30.2 million in custodial and internal service funds, including $3,918,249 in employee health insurance trust assets and $26.3 million in college financial aid accounts. The full report is available on the district's website.
Why it matters
The report shows how the district's reserves and major projects stand after the fiscal year, which matters to taxpayers and families who want to know how public money was spent. It also gives board members a baseline for future budget and capital planning.
- Financial audit
- Board vote
- New construction
- Special education services
- Heat and air conditioning
Written with AI from the publisher's article and may contain errors. The original reporting is the authoritative source.
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- How should a district weigh keeping a healthy reserve against spending on facility projects such as air conditioning and athletic facilities?
- What information in an annual financial report would help community members best understand how district money is used?
- How can the board explain fund balance changes to residents so that planned drawdowns are easy to tell apart from unplanned shortfalls?
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