Planning the City’s 2025 Budget Underway

Important Dates for Community Involvement

The City of Owatonna’s 2025 budget process is underway as needs are being assessed and projects are being prioritized. The City of Owatonna’s budget is influenced by multiple internal and external controls. State law requires municipal budgets to be balanced; cities are not allowed to deficit spend.

City staff utilize a rigorous process for developing the annual budget that provides opportunities to evaluate revenue and expenditure forecasts so adjustments can be made as the budget plan evolves. It also includes multiple opportunities to share information publicly and invite input from the community.

Although some information is not yet available, the annual budget process began in July with department directors preparing initial Operating and Capital Improvement Plan (CIP) budget requests, refining them with the City Administrator and Finance Director and determining whether they align with the City’s priorities. City staff maintain a 10-year facility needs assessment that guides forecasting for expenditures and levy increases required to maintain capital investments to help ensure they continue serving the community’s needs. The following four Key Focus Areas developed by the City Council and staff help prioritize work and allocate resources: Economic Vitality, Infrastructure, Quality of Life and Efficient, Effective Government.

Department presentations regarding the proposed 2025 budget were given to the City Council in three recent work sessions. The presentations included projected revenues, expenditures and a proposed 7.5 percent property tax levy for 2025. Information from the Steele County Assessor’s Office regarding tax capacity, available later this month, will provide insight on balancing a potential levy increase to minimize impacts on taxpayers.

At the September 17 City Council meeting, City staff will present the proposed 2025 CIP and Operating Budget requests for approval. The City Council must adopt a preliminary levy for the following year which must be certified through Steele County before September 30. Adjustments can continue after this point to lower the levy; however, it cannot be increased past this point.

Additional data points that influence the City’s annual budget include tax capacity fluctuations, Local Government Aid allocations, union contracts for employee wages, property valuations determined by the County and employee benefits costs. This information is available in November. The 2025 budget will be discussed at the November 19 City Council Study Session.

As the end of the year approaches, so will the City’s budgeting process. The City Council will hold the annual Truth in Taxation Hearing December 3 to present a summary of the proposed 2025 budget to the community. Public input is encouraged at the hearing and throughout the entire budget process. The City Council is expected to take action to adopt next year’s final budget and levy December 17. For additional information, visit owatonna.gov/finance.

Open Basketball

Open basketball is back at the West Hills Gym! We are thrilled to have you here to play basketball in a fun and safe environment. Open to all ages. Children ages 12 and younger must be accompanied by an adult. During our open basketball sessions, you will have access to our indoor court to play games, practice shots and work on dribbling skills. To ensure the safety of all participants, we ask that you follow our guidelines and rules while playing. This includes wearing appropriate footwear and clothing, respecting your fellow players and following the directions of our staff.

Visit owatonna.gov for details and to register. Registration is required. The daily cost is $5.