ISD 882: Monticello School District
The Goal
Located in Wright County, approximately 40 miles northwest of the Minneapolis and St. Paul metropolitan area, the Monticello School District serves a population of over 21,000. The District operates three elementary schools, one middle school and one senior high school, with enrollment of 4,350 in 2026.
The District has experienced declining enrollment, putting a strain on the operating budget as the District’s largest revenue source, General Education Aid, is calculated based on enrollment. To maintain programs and staffing ratios and reduce cuts, the School Board sought additional revenue sources.
The Solution
The District engaged Ehlers School Finance Team for Financial Planning. The District and Ehlers approached the situation by first examining the District’s existing authority of $775 per pupil, which was authorized through taxes payable in 2027, and fell within the window for potential Board renewal. Ehlers provided data for evaluating options; leaders considered the composition of the property tax base, primarily residential and commercial, and reviewed the overall tax burden in comparison with neighboring school districts. They incorporated survey results to gauge community sensitivity to potential tax increases and conducted an analysis to determine the level of revenue needed while balancing the tax impact that property owners would be willing to support. Ultimately, with the advisement from Ehlers, the District chose to pursue a revoke-and-replace strategy rather than establishing an entirely new authority, recognizing that if the election were unsuccessful, the Board would still retain the option to renew the existing authority.
The Outcome
The District had a successful election on November 4, 2025, with voters approving to revoke the existing authority of $775 per pupil and replace it with $1,550 per pupil, thrn increasing each year by the rate of inflation.