ELY – The Ely School Board, on Monday night, approved a nearly nine-percent property tax levy hike for the next year for residents in ISD 696. The Payable 2019 Levy of $1,811,459 is $149,092, or 8.97 percent more than last year’s levy of $1,662,367.

No taxpayers questioned the levy increase or even spoke at the Truth-in-Taxation public hearing, held at the beginning of the regular board meeting.

Superintendent Kevin Abrahamson noted that the 2018 levy revenue is just 20 percent of the total district revenue of $8,320,289.

The fiscal year 2019 budget adopted by the Ely School Board in September shows a $234,842, or 2.9-percent, increase from the current revised budget. Revenues of $8,320,289, are outpacing expenditures of $8,246,428, showing an anticipated surplus of $122,493.

The board approved the maximum levy amount in September, which would have been close to an 11-percent increase, according to Abrahamson. “We tried to get it under nine (percent) and barely did.”

The career tech levy of $16,650 is new in the Payable 2019 Levy. “I know this is a small amount, but this is an example (of the levy increase)” he said. “We were eligible to levy more in this area, but that is one of the areas where we cut back. We do have a couple of courses that qualify under career and tech so we decided to be a bit conservative and not levy the maximum we could under that.”

Other notable local levy increases from 2018 to 2019 include: voter approved operating referendum, $12,693; equity, $11,618; operating capital, $11,316; Q Comp, $6,722; and long term facilities maintenance $15,745. Deferred maintenance shows a levy decrease of $1,560.

Abrahamson listed reasons for the levy change. “Adjustments to the levy happen when actual numbers are known,” he said. “We had an increase in enrollment that we did not project,” he said, “so the actual dollars that came in were more than budgeted. There are times when you under-levy in a certain category; the state allows you to make that up the following year. If you over-levy, then you have to levy less. The state sets those guidelines for us.”

State equalization calculations change the aid/levy split on an annual basis, he said.

Abrahamson compared the revenues from the local levy for 2018 and 2019. The Building/Land Lease shows an increase of just over $19,000. “That is paying on the amount that was borrowed to do the work on the (ice) arena years ago,” he said. “This includes the arena improvements, and remodeling of the floor.” That amount increased from $68,754 in 2018 to $87,775 in 2019.

Ice arena operating costs show an increase of about $10,000, from $68,500 in 2018 to $78,830 in 2019.

A decrease in the tax levy of almost $10,000 is the result of a health benefits policy change for employees 65 years of age and older and retiree insurance. “That decreases the costs to the district as well as the cost to the retiree, and that helped with the tax levy,” Abrahamson said. “The re-employment or unemployment insurance decreased based on the prior year actuals being lower than budgeted.”

Taconite tax adjustment decreased from $50,477 in 2018 to $47,558, or bout $3,000. “That means that taconite production went down,” he said. “This is not additional revenue for the district. This replaces revenue that would have been collected from property owners.” Production credits are based on local mines’ prior three years of production.

Long-time board member honored

Board Chair Ray Marsnik presented a plaque of appreciation for service to outgoing board member Scott Kellerman at his last board meeting for the district.

Kellerman was first elected to the Ely School Board in 1996 and chose not to seek reelection this year.

“I could write a book,” Kellerman said. “There were very highs and very lows, but overall it has been worth it. It is bittersweet to leave, but now is the time.”

Marsnik, who has served on the school board for 17 years, told Kellerman that he enjoyed working with him.

Other business

In other business, the school board:

 Changed the date of the December study session to Monday, Dec. 17, at 6 p.m.;

 Approved criteria for awarding a varsity letter for club activitites as recommended by the athletic director;

 Approved the World’s Best Workforce Report and Summary;

 Approved the professional services proposal from Architectural Resources Inc. for $28,500 and will discuss next steps for the facilities renovation project at the December study meeting;

 Rescheduled the fiscal year 2018 audit review for the January 2019 regular meeting;

 OK’d meal reimbursement rates for district staff travel for 2019 at the same rate since 2012 as $10 for breakfast, $15 for lunch, and $25 for dinner;

 Went into closed session to discuss pending litigation with legal counsel concerning salary adjustments for teacher pay from 2017.