School Board approves $7.77M facilities bond, 10-year plan

With a slate of facilities projects on the horizon, Owatonna Public Schools has put a plan in place for when to complete them and how to pay for them.

The Owatonna School Board approved a 10-year long-term facilities maintenance (LTFM) plan at its Monday meeting, as well as facilities bonds totaling $7.77 million.

Both resolutions were approved in a 5-0 vote, with board members Elizabeth Hedlund and Deborah Bandel absent.

The total bond amount includes nearly $2 million remaining from a bond voters approved in 2019, which the district is able to access due to a change in Minnesota statute. According to previous presentations to the board, the tax impact of the bond will be negligible to most homeowners. Homes valued under $300,000 will actually see a slight decrease in their property taxes to the district next year, due to a growth in the local tax base.

The tax impact will be spread out over 16 years, starting in 2025.

The district revises its LTFM plan every year. Based on an analysis conducted earlier this year by consulting firm SitelogIQ, the district is prioritizing pool restoration at Owatonna Middle School and indoor air quality projects at McKinley Elementary and the Owatonna Education Center, which are currently served by aging HVAC systems in portions of the buildings.

The Minnesota Department of Education requires districts to develop LTFM plans in order to receive facilities aid, which is determined by enrollment and the age of a district’s buildings. The district currently qualifies for approximately $1.8 million in LTFM aid annually.

During the meeting, the board also approved a three-year transportation contract with Owatonna Bus Company that breaks down rates by route and vehicle type, as opposed to the lump sum agreement the district previously had with the bus company.

“We went through a long process with Owatonna Bus Company to review our language and to revamp the rate structure of this contract. I believe we’ve greatly improved the contract by doing so,” said Director of Finance and Operations Lori Volz.

The contract establishes rates for the first year, with rates for the second and third years to be finalized around January 2025.

The board also approved a resolution calling for a general election. Three school board members — Bandel, Tim Jensen and Eric Schuster — are up for re-election this fall.