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Owatonna school board approves levy increase
10/9/2008 12:00 AM

Jeff Cagle, Owatonna People's Press

OWATONNA — The Owatonna school board on Monday approved a preliminary levy increase by 4.54 percent.

But, it does not mean a 4.54 percent increase in property taxes for all homeowners. For some homeowners, it may cause a decrease in property taxes for the district.

Tom Sager, director of operations and finance for the Owatonna school district, said the total market value in the district and total net capacity has increased faster than the levy.

“But at the same time, each property is assessed different and is assessed on a case-by-case basis,” Sager said.

According to the Steele County Assessor’s Office, there are nine separate property parcels ranging from $88,800 to $538,900. Those with lower property values will pay minimal taxes while those with higher property values will pay more.

Superintendent Tom Tapper said the state funding formula shifted from 68 percent for local obligations to 73.5 percent this year. At the same time, the state hasn’t increased any revenue to the district; it simply shifted more of the obligation to the local level.

“I believe we’ve been very, very responsible over the last several years,” Tapper said.

According to the Minnesota Department of Education, the average homeowner in the Owatonna school district pays $521 annually in school district taxes. The state average is $664.

Sager said the school levy makes up the lowest of the three property taxes residents pay in Steele County and in the city of Owatonna.

Sager wouldn’t rule out the possibility of the tax levy increasing due to the unstable housing market. But it would not mean the school board would be allowed to raise the levy past a maximum cap from the Minnesota Department of Education.

“This acts as a check and balance,” he said.

The final tax levy will be approved at the Dec. 8 meeting. Sager said they will also hold a truth-in-taxation meeting on Dec. 1 to answer any questions and discuss where taxpayer dollars for the district are going.

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