Owatonna Public Schools proposes 5% increase in property tax levy for 2025

The Owatonna Public Schools Board meeting held on December 9, 2024, focused primarily on the district's budget and proposed property tax levy for the upcoming fiscal year. The meeting provided a detailed overview of the financial landscape, emphasizing the significant role of personnel costs in the district's expenditures.

The total budget for the current fiscal year stands at $80.3 million, with a substantial 81% allocated to salaries and employee benefits, reflecting the district's commitment to its primary mission of providing quality education. Instruction-related expenses, including regular, vocational, and special education, account for 66.6% of the overall budget.

A key point of discussion was the relationship between tax levies and the overall budget. It was clarified that changes in the tax levy do not necessarily equate to changes in the budget, as state formulas dictate funding levels. The board noted that increases in local tax levies often correspond with reductions in state aid, resulting in a revenue-neutral effect for the district.

The proposed tax levy for 2025 is set to increase by 5%, amounting to an additional $967,743. This increase is driven by several factors, including adjustments in long-term facility maintenance funding and inflationary adjustments to the operating referendum. The general fund community service category is expected to see a notable 20% increase due to the introduction of a new school-age childcare program.

The meeting also highlighted the complexities of property tax calculations, including the impact of property valuations on individual tax bills. The board discussed recent legislative changes that provide tax relief for homeowners and farmers, which are expected to influence the tax landscape positively.

As the meeting concluded, the board opened the floor for public comments regarding the proposed levy, with plans to certify the final property tax amounts following the hearing. This meeting underscored the district's ongoing efforts to balance fiscal responsibility with the need to support educational services effectively.