Owatonna School Board certifies maximum preliminary property tax levy for 2026

The Owatonna School Board on Sept. 22 voted to certify the maximum preliminary property tax levy for taxes payable in 2026, approving a levy that represents a 2.24% increase over the district's 2025 levy.

District finance staff told the board the increase stems primarily from an inflationary adjustment to the district's per-pupil referendum amount and from restoring a portion of the long-term facilities maintenance (LTFM) levy the board had under-levied last year. "The maximum levy being presented tonight is an increase of 2.24% over last year's levy," said Mark Stotts, a district staff member who reviewed the levy timeline and calculations with the board.

Why it matters: certifying the maximum preliminary levy preserves the board's flexibility through the state timeline. The property owners' notices are expected to go out in mid-November; the board will hold a Truth-in-Taxation hearing and certify the final levy in December. Stotts warned that the state sets most levy formulas and that the board's direct control is limited. He said the two main levers the board can influence are asking voters to approve an operating referendum or a bond referendum.

Board members asked about options to "under-levy" in some categorical levy areas and the trade-offs involved. Stotts said under-levying can reduce local levy amounts but may reduce state aid tied to specific categories. "Some categories are 100% levy; you could choose to under-levy in those particular categories. We're not necessarily recommending that tonight, but it is an option the board would have," he said.

Board discussion included reference to a finance committee review and historical practice of certifying the maximum at this preliminary stage. Board members noted that if an operating levy placed before voters in November passes, that outcome will be reflected in the final levy certified in December; if it fails, the board can leave the levy at the certified preliminary level or choose to under-levy certain categories before final certification.

The board approved a motion to "certify a preliminary levy in the maximum amount provided by law." The motion was seconded and carried with the board's voice vote; no roll-call tally was recorded in the meeting minutes.

The board and staff said they will return in December with final levy certification after the November operating-levy election outcome and additional finance committee discussion.