ELY — The Ely School Board expects a property tax levy of $2.29 million on Monday for taxes payable in 2026, a decrease of $264,671, or 10.36 percent, from the previous year’s levy of $2.55 million.
Most levy categories declined compared to last year. The operating referendum levy, which is allocated based on property values, dropped 21 percent to $149,159. Local optional revenue fell 25 percent to $378,163. And the levy to pay voter-approved bonds decreased nearly 16 percent to $554,473.
The only category showing an increase was the capital projects referendum, which rose to $378,744, an 8 percent increase reflecting voter-approved facilities improvements.
The largest single levy category is “General Fund NTC Other”—a collection of smaller levies including operating capital, alternative teacher compensation, safe schools funding, and several other state-mandated programs. That category totals $623,503, representing about 27 percent of the total levy, and fell 12 percent from last year.
Property taxes account for just 23 percent of Ely schools’ revenue. State aid provides more than 70 percent of the district’s $10 million budget, with federal sources contributing about 2 percent and other revenues making up the remaining 4 percent.
The district’s General Fund, which covers day-to-day operations, projects revenues of $7.85 million against expenses of $7.96 million for the 2025-26 school year, a gap of less than $114,000.
Salaries account for $4.42 million, or 52 percent of General Fund expenses, while employee benefits add another $2.05 million. Together, compensation for teachers, staff, and administrators consumes more than three-quarters of the operating budget, which is typical for school districts.
Purchased services including special education providers, technology support, and transportation contracts account for $1.25 million, or nearly 15 percent of expenses. Supplies and materials add another $405,000, while capital expenditures total about $292,000.
The timing of school levies often confuses taxpayers. The board will certify the levy in December 2025, but property owners won’t pay those taxes until 2026. Those 2026 tax payments will fund the 2026-27 school year, which begins in September 2026.
The system requires districts to budget and plan more than a year in advance. Districts must estimate enrollment, staffing needs, and costs while waiting to see what the legislature decides about state education funding.
The Truth in Taxation presentation is required by state law to give taxpayers a clear picture of how their money is being spent before the board makes its final certification. Property owners will see the certified levy amounts reflected in their property tax statements due in March.