After spending more than it earned throughout the 2004-2005 school year, the West Fargo School District lessened its fund balance by about $206,000, a final report given by Lemer last week said. That was about half of what the District initially projected, as it originally budgeted to pay down its fund balance by about a half-million dollars thanks to the opening of the $20 million Cheney Middle School and the renovation of the former middle school.

But increased revenues through tuition agreements and some higher interest rates helped the District bring in a little bit more revenue than it originally projected, while expenditures were almost right on track.

For 2005-2006, a turnaround is in order, as the District looks to grow its fund balance by about $550,000, giving it a projected fund balance of $3.7 million by June 30, 2006.

";We're going to try like the dickens not to deficit spend this year,"; Chuck Cheney, superintendent of West Fargo schools, said during teacher/district contract talks. ";It's going to be a battle each year.";

Indeed, with a six-classroom expansion at the Early Childhood Center hitting the books this year, and two new buildings in the works ready to come online in 2007, the District will continue to battle new expenditures like additional staff, capital projects and other costs for the long term. Cheney told the Board Monday night that additional staff will be needed this year across the District as the student population across West Fargo continues to rise.

Still, the District dodged a couple of bullets this year thanks to the West Fargo Education Association's decision to accept the mediated contract offered to teachers last Friday. As a result of an impasse panel's recommendation, the WFEA accepted the proposed 8 percent raise offered by the Board over the next two years. That's a step down from the dramatic raises of more than 10 percent received by teachers in each of the last two negotiating sessions, held in 2001 and 2003.

Plus, teachers are stepping up to the plate to help defray rising insurance costs, increasing their share of the burden. That's another step that will help the District save money.

Still, nearly three-quarters of next year's budget is appropriated for staff salaries and benefits. And the Board approved a similar pay raise of about 8 percent for classified staff and administrators on Monday night.

Lemer said that because the District continues to increase in size, the costs will always be there. It's a battle to balance that will take time.

But it's a battle aided by a couple of factors. The community continues to grow, which means revenues are projected to continue to rise in the District's favor. Projects like the huge Scheel's store on 45th Street help, as will the new Integrity Windows project on the city's north side, after they outgrow their tax exemptions. Housing starts continue to boom in Eagle Run and Osgood, both within the District's tax base.

In fact, the city's taxable valuation is projected to top $1 billion for the first time in its history in 2006.