Westonka Superintendent Kevin Borg made two vows to residents at a crowded meeting earlier this week: that the district will get out of statutory operating debt within 18 months and that it will replace its finance director by July.

The district's current finance director, Chuck Herdegen, submitted his resignation before the meeting.

"I take responsibility for this situation and for providing a plan for reliable projections," Borg said. "I apologize to our students, our staff and our community. You deserve better."

The superintendent's statement came less than a week after an audit of the west-metro district's budget revealed that a projected $450,000 deficit had grown to $1.1 million by the end of last school year.

The audit, conducted by Kern, DeWenter and Viere of Minneapolis, showed that the deficit grew because of overestimated revenues from state and local sources.

"From an expenditure standpoint, they executed the budget according to the plan they established," accountant Matt Mayer said.

Statutory operating debt is a term the state Department of Education applies to Minnesota school districts with deficits greater than 2.5 percent of their annual expenses. Westonka's was more than 5 percent as of last June.

Herdegen has worked for the district since 2000. In a telephone interview Wednesday, he said he has more than 30 years of experience in Minnesota school districts, including Litchfield and Little Falls.

"I feel confused and frustrated, but we're going forward," he said.

The district has said it expected to have 19 more students and $300,000 more in special education revenue last school year.

At a school board meeting Monday, one resident after another blasted district officials for not telling the public that Westonka's finances were in the red before they approved an $877,000-a-year, 10-year operating levy on Nov. 6.

"I went to the polls and voted yes for the levy only to find out a million dollars of it has to go to this," Minnetrista resident Chris Griffith said. "It amazes me that a small community like Mound [Westonka] can't control their spending."

Not everyone had harsh words for the district, however. Some, including former Superintendent Gene Zulk, expressed their support.

Board succession also an issue

Newly elected school board member Tom Notch was in attendance throughout Monday night's meeting and joined dozens of residents who called on the board to appoint Ray Salazar to a board seat formerly held by Chuck Walerius.

Salazar had the fifth-highest number of votes in the district's Nov. 6 school board election, when four seats were filled. Notch and Gary Hejna, who also won a seat, ran a joint campaign with Salazar.

Walerius, who has decided to move out of the district to be closer to his job, resigned on Monday, but word of his departure had spread around the district last week.

"I know you've been talking to the Minnesota School Boards Association, but there are no rules on this," Notch said. "From a public perception point of view, it's the right way to gain credibility," he said of appointing Salazar.

Minnesota School Boards Association Executive Director Bob Meeks urged the board to develop a process for selecting new board members in the event of resignations. He advised against simply selecting the first runner-up from the last election.

The school board unanimously voted to begin conducting interviews for Walerius' replacement next month.

That means Notch and Hejna, who join the board in January, will participate in the selection.

Patrice Relerford • 612-673-4395