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Ely district will generate another $350,000 in property taxes
Voters in the Ely School Dist r ict author ized a $350,000 capital project levy on Tuesday.
A referendum that all but flew on the radar, generating little in either public opposition or support, was approved by 176 votes.
The final vote total was 1,623 in favor and 1,447 opposed, a 52-48 percent split.
As a result the district will have another $350,000 in property tax revenue to use starting next year.
Estimates compiled by the district’s financial advisors showed that levy would raise property taxes by $22 a year on a $100,000 home and $61 on a $200,0000 residential property.
The levy applies to all properties in the district, including those classified as seasonal recreational.
During presentations over the last several months, school officials said the additional money would be used to cover some transportation, technology and curriculum expenditures.
A capital project levy is allowed by state law to provide more funding for schools in an assortment of areas, while offsetting general money that would otherwise be used for those purposes.
School board member Tom Omerza voiced relief late Tuesday, when it appeared the referendum was on its way to approval.
During the run-up to the vote, superintendent Anne Oelke indicated that significant budget reductions may be needed if the new revenue didn’t materialize, and Omerza said on election night that the funding was critical.
“This has been really hard, especially on administration in communication with the school board as to how to help as best as possible,” said Omerza. “With all the competition we have, from home school to online school to PSEO, this money is all going toward the kids. Everything we want to do is geared toward the kids. That’s why we’re there, to educate kids and keep them safe. We’re not looking to spend money outside the classroom or co-curriculars.”
During the summer, school financial advisors produced data showing that state education funding hasn’t kept pace with inflation while earlier this year, the school district made about $270,000 in budget cuts and revenue enhancements, while still authorizing a budget that calls for deficit spending in 2024-25.
The Ely district has seen enrollment declines in recent years, with K-12 student population now at 522 students, down from 573 just five years ago.
Omerza said he will also press for the district to pursue other sources of revenue, including more state funding as well as grants.
“One thing I want to do as being part of the finance committee is to rest on our laurels and to see what we can do beyond just relying on more and more on local taxpayers to keep the school going,” said Omerza. “I want to keep things on the front burner at the state legislatures and trying to find different ways to keep the school district strong and independent.”
While voters approved a $10 million referendum in 2020 for the school’s renovation project, and Minnesota lawmakers allocated $5.25 million this year for Ely school sports facilities, those funds are specifically earmarked and can’t be used for other purposes.
