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Owatonna school board sets Aug. 24 public hearing on tax-abatement plan for OEC parking improvements
Summary
The Owatonna Public School District board voted 5–0 to set a public hearing for Aug. 24 on a proposed property tax abatement to help finance parking‑lot and related infrastructure work at the Owatonna Education Center; the board was not asked to approve bond issuance tonight.
The Owatonna Public School District board on July 13 voted unanimously to set a public hearing for Monday, Aug. 24, at 5:15 p.m. at the Charles S. Crandall Center to consider a proposed property tax abatement to finance parking and parking‑infrastructure work at the Owatonna Education Center (OEC).
Dr. Ciampa introduced Mr. Stotz, who told the board they were "not being asked to approve property tax abatement bonds, but to set a public hearing to discuss those." He said the hearing will cover projected tax impacts and how the abatement would fit into a broader financing package for the OEC project.
"The public hearing would be, on Monday, August 24, immediately prior to the regular school board meeting at 05:15, right here at the Charles S. Crandall Center," Mr. Stotz said. He described tax abatement bonds as one financing option that has been used by cities and counties and, more recently, by some school districts for parking lots and related infrastructure such as curb, gutter and drainage.
Stotz told the board that the district currently has a debt‑service fund excess this year and that the combination of any abatement-related levy and the scheduled decrease in the district's debt‑service levy could result in a net decrease to property tax levies; he said the finance and facilities committees will review detailed numbers before the hearing. "We're at that point this year, and so our debt service levy is gonna go down as a result of that, so if we include this tax increase and the debt service excess decrease, it's a net decrease to people's property tax levies," he said.
Board members asked for committee meetings before the hearing; Dr. Ciampa and staff said they would schedule finance and facilities meetings to provide more detailed estimates and to prepare a public presentation for the hearing. The board then moved, seconded and approved a resolution establishing the public hearing and compliance steps for reimbursement bonds under the Internal Revenue Code; the vote was recorded as 5–0 in favor.
Next steps: the district will schedule committee meetings to review financing estimates and will hold the public hearing at the time and place announced. No bond issuance or final financing decision was made at the July 13 meeting.
