Watertown School Board Approves 2025-26 Financial Report, Maintains 22.9% General Fund Reserve
Northeast Radio SD News – Watertown, SD - The Watertown School Board voted unanimously Tuesday, October 13, 2026, to formally approve the district’s 2025-2026 Annual Financial Report. Business Manager Heidi Clausen presented the audited year-end financials for the fiscal year ending June 30, 2026, after the South Dakota Department of Education formally accepted and reviewed them.
The annual report presents detailed accounting across major district funds, capital projects, enterprise operations, and internal service accounts.
General Fund Maintains 22.9%, Reserve Standard
The General Fund closed the 2025-2026 fiscal year with a slight reduction in fund balance of $81,457. Total actual revenues reached $29,726,041, while total actual expenditures totaled $29,807,497, bringing the ending General Fund balance to $6,828,930.
Clausen highlighted that the remaining balance represents 22.91 percent of total annual expenditures, maintaining the board's target reserve margin.
Capital Outlay Costs Driven by Athletic Complex and School AC Upgrades
The Capital Outlay Fund balance decreased by $2,108,824 during fiscal year 2026, ending at $2,794,644. Revenues totaled $8,688,938, while expenditures totaled $10,797,762.
Clausen explained that the planned reduction was driven primarily by major capital investments, including construction costs for the Allen Mitchell Athletic Complex and district-wide elementary school air-conditioning projects. The $2.7 million ending balance remains directly aligned with the district's long-term five-year capital outlay management plan.
Special Education and Lake Area Tech Fund Performance
The Special Education Fund drew down $745,631, ending the fiscal year with a balance of $2,214,163. Total fund revenues were $8,336,899, while total expenditures were $9,082,530. The ending balance leaves Special Education with a 23.17 percent fund reserve relative to annual expenditures.
In contrast, Lake Area Technical College generated a significant increase in fund balance. LATC reported $36,215,770 in total revenues against $33,709,440 in expenditures, adding $2,506,330 to its reserves and bringing its total ending fund balance to $8,890,631.
Enterprise and Custodial Account Performance
The comprehensive document details operational financials for the district’s enterprise funds, including K-12 nutrition, arena concessions, driver’s education, and preschool services, as well as LATC’s bookstore, food service, and Educare programs.
In addition to major and enterprise funds, Clausen noted that the district oversees approximately $30.2 million in activity funneled through custodial and internal service funds. These include $3,918,249 in self-funded employee health insurance trust assets and $26.3 million in post-secondary educational financial aid accounts managed by LATC.
Board Approval and Commendations
After the presentation, Vice President Kari Lohr moved to approve the 2025-2026 Annual Financial Report, and Board Member Jean Moulton seconded.
Following discussion, the board voted unanimously to adopt the financial report. The complete digital document is available for public download on the Watertown School District website.
