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Osseo board approves preliminary levy at maximum amid MDE timing issues

Independent School District 279 (Osseo Area Schools) School Board · September 24, 2025
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Summary

Staff recommended certifying the 2025 payable‑2026 preliminary levy at the maximum to preserve flexibility while the Minnesota Department of Education finalizes calculations; board approved unanimously after staff outlined major levy drivers including a $2.7M referendum increase and debt service changes.

The board approved certification of the district's 2025 payable‑2026 preliminary levy at the maximum on Sept. 23 after staff explained that some detailed levy calculations were not yet available from the Minnesota Department of Education. Executive Director of Finance and Operations John Morstead told the board MDE released the first run of levy data on Sept. 8 and that staffing changes at MDE delayed full reconciliation of calculation items.

Morstead highlighted four major drivers of levy change: an increase in referendum levy authority of about $2,700,000 tied to statutory cap changes and pupil units; an estimated judgment levy increase of about $500,000; an increase in abatement levy pressure of roughly $1,200,000; and a scheduled debt service increase of approximately $3,300,000 tied to Build a Better Future debt. Given those components and remaining timing uncertainty, staff recommended certifying at the statutory maximum to preserve flexibility. The board voted 6–0 to approve the preliminary levy certification; staff said exact dollar figures will be brought back for final certification in December after MDE reconciliation and a truth‑in‑taxation hearing on Dec. 16.