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Board certifies preliminary levy at maximum to preserve flexibility amid MDE timing delays

September 24, 2025 | Osseo Public School District, School Boards, Minnesota


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Board certifies preliminary levy at maximum to preserve flexibility amid MDE timing delays
Osseo Area Schools on Sept. 23 approved certifying the 2025 payable‑2026 preliminary levy at the maximum allowable amount, a procedural step the district uses to preserve flexibility while state calculations are finalized. John Morstead, executive director of finance and operations, said the Minnesota Department of Education (MDE) is still completing certain levy calculations because of staff capacity and timing issues at the agency.

The nut graf: because MDE’s final adjustments were not yet available, the board authorized the traditional “maximum” preliminary certification so district staff can continue reconciling data and return a precise dollar amount for final certification following the district’s Dec. 16 truth‑in‑taxation hearing.

Morstead reviewed factors that change levies: changes in state law, adjusted pupil units, changes in market value or tax capacity, and expenditure changes for programs whose revenue equals actual expenditures (for example, long‑term facility maintenance pay‑as‑you‑go). He identified several preliminary movement areas: an estimated $2.7 million increase in the district’s operating referendum levy authority (about 5.3%) driven by a statutory cap change and higher pupil units; an approximately $500,000 increase to the judgment levy; a $1.2 million increase in abatement levy amounts; and a planned $3.3 million increase for debt service to cover principal and interest payments on voter‑approved bonds.

Morstead said the district expects its portion of property tax changes to be between about 2.5% and 4.5 percent, noting that other local governments are proposing higher percentage changes. He asked the board to approve certification at the maximum to allow staff to reconcile outstanding MDE detail before the December final hearing. After a motion by Director Kelsey Dawson and a second by Director Sarah Mitchell, the board approved the preliminary levy certification at the maximum 6–0.

Ending: district staff said full levy detail will be presented for board action at the Dec. 16 meeting, which includes the public truth‑in‑taxation hearing and final levy certification.

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Scribe from Workplace AI
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