Owatonna School Board Celebrates Staff Achievements, Tackles Fiscal Challenges, and Approves Tax Levy

The Owatonna School Board meeting on December 9 was marked by celebrations of staff achievements and a detailed examination of the district’s financial status, leading to the approval of the 2025 property tax levy. Key topics included the recognition of outstanding contributions by staff, a comprehensive audit report, and discussions on the impact of reduced federal funding.

The meeting opened with a “Mission Moment,” honoring Mark Oerk, recognized as the region’s Activities Director of the Year. Oerk, who has been in his role since 2018, was celebrated for his organizational abilities and commitment to student activities, notably the Annual Adapted Floor Hockey Night. He highlighted the event’s role in fostering community spirit and student excitement. Oerk attributed his success to his administrative assistant and activities team, emphasizing the collective effort behind school events. This acknowledgement of teamwork and community involvement underscored the positive environment cultivated for students.

Financial discussions dominated much of the meeting, beginning with a presentation of the audit report for the fiscal year ending June 30, 2024. The audit, conducted by CliftonLarsonAllen, confirmed a clean or unmodified opinion, the highest assurance level. The district’s unassigned fund balance rose to 14.81%, surpassing the policy range of 8 to 10%. An increase in average daily student membership, while modest at 1%, was noteworthy against the backdrop of declining enrollments in many other districts.

However, despite this positive audit outcome, the board faced financial challenges. Federal funding has decreased notably due to the expiration of $3 million in pandemic-related grants, impacting the district’s budget. The general fund budget, set at $80.3 million, primarily covers salaries and employee benefits, reflective of the district’s focus on instructional services. These costs account for a substantial 81% of the budget, with instructional expenses alone comprising 66.6%. The financial report also highlighted increases in revenue from state sources, although much of this funding remains restricted.

The Truth in Taxation hearing, mandatory for compliance with state law, was another focal point, culminating in the approval of the 2025 property tax levy. The presentation detailed the complexities of school funding, the impact of inflation, and new tax relief provisions. These include benefits for homeowners and farmers, which will influence tax obligations. The board navigated through these complexities, emphasizing the need for a balanced budget amidst rising home values. The levy certification passed following public input and administrative clarifications.

The meeting also addressed policy matters, notably the revision of Policy 522, the Title IX non-discrimination policy. A board member expressed concerns over its adequacy in protecting students, particularly in sports participation. The policy committee resisted changes, citing potential legal conflicts. The board ultimately approved the policy, despite dissent from the concerned member.

In addition to financial and policy discussions, the board celebrated its members, specifically honoring Deborah and Eric for their service and contributions to the community. The meeting concluded with the approval of gifts to the district, notably for the music department.

Note: This meeting summary was generated by AI, which can occasionally misspell names, misattribute actions, and state inaccuracies. This summary is intended to be a starting point and you should review the meeting record linked above before acting on anything you read. If we got something wrong, let us know. We’re working every day to improve our process in pursuit of universal local government transparency.
Superintendent:
Jeff Elstad
School Board Officials:
Mark Sebring, Lori Weisenburger, Eric Schuster, Jolayne Mohs, Deborah Bandel, Elizabeth Hedlund, Timothy Jensen

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