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When state lawmakers convene this week, they’ll begin dealing with a slew of requests from local government officials from all corners of the state.
While Ely area officials presented a long list during a meeting held here last month, there’s one item that remains at the top of the list when it comes to the city of Ely.
That’s local government aid.
Rather than a new project or funding for specific initiatives, Ely city officials indicated that it’s the annual allocation of funding from the state that’s most important this year and beyond.
“LGA will always be the number one priority on the list, at least in my mind,” said Harold Langowski, the city’s clerk-treasurer and operations director. “Because without it, a lot of things don’t happen.”
LGA, which sends state funding to cities based on an assortment of factors ranging from population to the age of the community’s housing stock, remains the largest single source of revenue.
In 2025, LGA funds make up 72.1 percent of general fund revenue at $3,152,500, with property taxes funding another $689,600, or about 16 percent.
“It goes without saying how important LGA is to support the infrastructure and support all of the things the city does, to not only support the Ely citizens but the surrounding area and all of the people that come up to visit,” said Langowski.
While the city got a sizable increase in LGA In 2024, Langwoski indicated that for 2025 the projected increase is $3,400 or just over a tenth of one percent.
Ely’s property tax levy climbed seven percent this year in part because of the flat LGA.
“We’re looking at a seven percent increase,” Langowski told legislators at the Dec. 16 Joint Powers Board Legislative Meeting. “With the inflationary impacts, this took a lot of work. This (increase) is much smaller than the number we started out with.”
Langowski indicated the levy hike was softened for local property taxpayers as a result of state action related to the homestead market value adjustment.
“Most of our taxpayers are seeing bracketed (decrease) numbers for this year, so that did help,” said Langowski. “We didn’t have anybody show up at our Truth in Taxation hearing.”
“That’s a good sign,” responded State Sen. Grant Hauschild (D-Hermantown).
The homestead market credit played a role in limiting the impact of Ely’s levy, according to Langowski.
“Without that there would have been a dramatic increase in people’s property taxes,” said Langowski. “And if we can get an inflationary adjustment in the LGA formula, I don’t think you’d see as many communities come to see you.”
Hauschild pledged his continued support for LGA.
“I will be the chief author of the LGA bill and it will be interesting to see the dynamics,” said Hauschild. “I would love to get inflation tied into it so this is a non-conversation. We will see.”
While only a portion of Ely’s property tax levy goes into the general fund, the rest of the roughly $2.3 million levy is used to fund capital projects, debt service, equipment replacement, the library and cemetery.
