ELY- The long-discussed subject of the possible annexation of Fall Lake Township to the Ely School District was back on the ISD 696 board agenda on Monday. It’s long been a sore point as the township’s considerable tax value goes to fund schools on the North Shore even though the township’s students attend school in Ely.
The issue has come up for discussion in other venues in the Ely area in recent weeks and the discussion prompted area resident Ozzie Reif to begin circulating a petition to advance the potential annexation of the township into the school district.
School board chair Ray Marsnik provided background on the issue, stating that at one time in the past, the school district had a tuition agreement with the Lake Superior School District. That agreement was terminated on the recommendation of a previous Ely superintendent “who felt we would be better off if we open enrolled” the Fall Lake students instead.
Marsnik mentioned that the Fall Lake students were discussed with the district’s Costin Group consultant two years ago, and that it was “one of those subjects that comes up every year … because (Fall Lake residents) are sending their kids here to our schools, so they should have an opportunity to serve on the school board … and have their taxes from their properties going towards our referendums or towards our building projects.”
“Those people (Fall Lake residents) want to know what they can do, to be with us (ISD 696), but it will be a pretty tough sell,” said Marsnik. “According to the last numbers I heard, some 18 percent of their tax base for that (Lake Superior School) District comes from Fall Lake Township, so we’re looking at some real dollars there, and I’m sure they’re not going to give that up easily.”
Marsnik said he would add the topic of Fall Lake on the agenda for the school board’s study session next week on Dec. 18, when a representative of the district’s lobbying firm, the Costin Group, will be in attendance.
Truth in Taxation
The district held its Truth in Taxation meeting as part of Monday evening’s school board meeting. The video presentation by district business manager Spencer Aune was pre-recorded and played during the meeting.
Aune reported that the levy revenue for 2023-24 was $2,224,762, which is 22.4 percent of the district’s total 2023-24 projected revenue of $9,950,197. The largest revenue source was the state, which contributes 63.4 percent of the district’s income.
The 2024-25 levy will be $2,268,864, which is an increase of $44,102 or 1.98 percent.
Most of the district’s expenses go for payroll, with $4,673,375 (46.9 percent) going to salaries and wages, $2,081,219 (20.9 percent) for benefits, and $1,067,743 (10.7 percent) for hired services such as substitute teachers and consulting services. The district currently spends $920,000 (9.2 percent) on debt service, mostly servicing the bonds that paid for the recent construction of the new addition. Total expenses for the district for 2023-24 are projected at $9,959,197.
In other business, the school board:
• Approved the November 2023 financial report, receipts for $575,654 and disbursements of $408,277.
• Approved the use of the maximum U.S. General Services Administration Domestic 2024 per diem rates for meal reimbursement and maximum lodging rates for all district employee travel.
• Adopted a resolution establishing combined polling places for multiple precincts and designating hours during which those will be open for school district elections not held on the day of a statewide election.
• Hired James Tesdahl for the bus driver position effective Dec. 1.
• Certified the 2023 Payable 2024 Levy in the amount of $2,268,864.
• Approved the Costin Group Consultant Agreement in the amount of $2,000 per month for 2024.
• Approved the World’s Best Workforce Report and Summary as presented, as required by the Minnesota Department of Education.
• Approved an anonymous $1,625 donation for special education, a $3,000 donation sfrom the Ely Education Foundation for a sign language interpreter for the upcoming Frozen musical in January, and $500 from the Ely chapter of Kiwanis for the senior class trip to Washington D.C.