The Pella School Board set their fiscal year 2017 budget during Monday’s regular meeting.

Superintendent Greg Ebeling says the district will have balanced finances next year, despite additional state aid not covering the expenses they typically roll over.

The board agreed to a teacher salary settlement of three percent increases, which Ebeling says includes increased cost in health insurance and jumps in the salary schedule.

A 2.25% increase to schools’ general funds was agreed upon by the Iowa House and Senate earlier this month.