District finance staff updated the board on the expected closure of Village Tax Increment District (TID) 2, which covered the Boston Store property and much of the mall spine. Speaker 12 said the village manager's current estimate for the school district's share of residual TID dollars is about $700,000, expected as a one-time payment likely before June 30.

Speaker 12 explained the timing of TID closure affects property valuations and state-aid calculations: "the closure of the TID changes property value, that's going to have an impact" on state aid, and staff are modeling five-year projections with financial adviser Baird. The district will present refined projections and options (for example, using funds to offset potential tax impacts or for capital projects such as Brinkman parking-lot improvements) at upcoming board meetings in January.

Administration and the board flagged that using one-time TID dollars can change the district's state-aid formula outcome in later years, so staff emphasized weighing options carefully. Speaker 12 also noted coordination opportunities with the village to include Brinkman parking-lot work as part of the village's road project work to achieve cost savings.

What happens next: staff will bring financial projections and a set of options to the board for action in January, including potential capital projects and the timing/impact of recognizing the one-time revenue in the district budget.