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Serving Northern St. Louis County, Minnesota

Ely council approves one-percent levy increase

Keith Vandervort
Posted 12/18/19

ELY – City council members here approved a certified levy of $1,768,590 for 2020 at a brief end-of-year business meeting Tuesday night.“We came in with a preliminary levy increase of 2.69 …

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Ely council approves one-percent levy increase

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ELY – City council members here approved a certified levy of $1,768,590 for 2020 at a brief end-of-year business meeting Tuesday night.
“We came in with a preliminary levy increase of 2.69 percent,” said Mayor Chuck Novak, “and our final levy shows just a one-percent increase. That is less than the rate of inflation even though our costs are going up.”
He noted that some additional costs came up, but the budget committee decided not to tap into the city’s reserves. “Our reserve policy is set. We are able to reserve half of the general fund and library expenses for next year, plus all debt service. That protects us from any negative actions taken at the Capitol.”
Novak also added that the city has a $200,000 land purchase in the wings for next year. “That will balance us out pretty much,” he said.
“The city is in good stead. And it is well run,” he said. “Some cities are looking at a levy increase of 11 percent or more. We can brag about this. We can thank the LGA (Local Government Aid) that is back to the 2002 levels. That’s what helps us here to keep this levy down.”
Council member and budget committee member Al Forsman added that the city continues to engage in major infrastructure upgrades. “Next year, with the James Street project, the city is on the hook for about $1 million. We don’t know that we will get all the grants we applied for. To be able to hold at a one-percent increase is significant.”
Council member Heidi Omerza thanked the city staff. “They leverage our hard-earned money and make it go further,” she said.
Novak noted that he likes to say the city staff is “frugal” at times. “We have an excellent staff and our accountant has the numbers down pat,” he said.
Council member Jerome Debeltz also noted that Clerk-Treasurer Harold Langowski continues to use city employees on much of the streets and infrastructure work. “There used to be a lot of that work here done by outside contractors, and I think that makes a big difference,” he said.

Other business
In other action, the council,
 Approved three-year employment agreements with AFSCME Local 1490 essential and base employee units that calls for wage increases of 2.5 percent in 2020 and 2021 and 2.25 percent in 2022.
 Named members of the new Sanitation Committee, including citizens Phillip Hegfors, Jr. and John Lahtonen, Planning and Zoning member Mauro Caruso, Ely Utilities Commission member Warren Nikkola, and council members Al Forsman, Paul Kess and Ryan Callen.
 Approved the purchase of a 32-inch commercial grade Toro Snow Blower from J&L Hardware for $1,611.75.
 Authorized payments of $1,603 to Dollar General and $1,195 to Razor’s Edge from the Conservation Incentive Program.
 Approved the hiring of Louis Gerzin to the Ely Fire Department pending results from a background check, drug test and physical.
 Approved in-kind services and Right of Way Obstruction permit for the WolfTrack Classic sled dog race, Feb. 22-23, 2020.

ely city council