Owatonna board certifies 2.24% property tax levy for taxes payable 2026 after Truth in Taxation hearing
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Summary
At a Truth in Taxation hearing Dec. 8, Director Mark Stotts reviewed the district's budget and proposed a 2.24% property tax levy increase for taxes payable in 2026. After no public comments, the board voted to certify the levy by voice vote.
The Owatonna Public School District board held a Truth in Taxation hearing on Dec. 8 and certified a proposed property tax levy that represents a 2.24% increase for taxes payable in 2026.
Director Mark Stotts presented the legal and practical context for school district levies, explaining that school budgets run on a July–June fiscal year, the state sets levy limits and aid formulas, and the board’s proposed levy was set at the state maximum. Stotts said the district had previously placed an operating-levy referendum on the November ballot that did not pass and that the failed referendum is not included in the levy before the board.
Stotts outlined the levy changes by category and identified the largest single change as a $442,000 increase in the long-term facilities maintenance (LTFM) portion of the general fund levy. He said that increase reflected a return to the state-allowed maximum after the board under‑levied by about $400,000 last year. "It is a 2.24% increase," Stotts said when summarizing the proposed change for property taxes payable in 2026.
Stotts also reviewed district-wide budget projections (administration projected about $98 million in revenues and roughly $106 million in expenses for the current year) and reiterated that roughly 78% of general fund revenue is expected to come from the state. He emphasized that while individual taxpayers may see their bills change with assessed-value shifts, the district’s total levy amount is distributed across properties by the county auditor and does not necessarily increase when an individual bill goes up.
Stotts invited public comment; none was offered. A finance committee member moved that the board approve the tax levy limitation and certification as presented; the motion was seconded and carried by voice vote with no opposition. The board’s action finalizes the levy to be used in county tax statements for taxes payable in 2026.
Stotts reminded taxpayers of state property tax relief programs such as the Homestead Credit Refund and special property tax refunds and recommended that residents consult tax professionals for eligibility and details. The board’s certification completes the local statutory step for levy setting; county officials will apply the levy across parcels when property statements are calculated.