ELY- As the district kicks into gear for a new school year, the Ely school board had a packed agenda for Monday’s meeting, where it approved an operating referendum that will go to voters in November, approved personnel changes, heard construction updates and approved numerous consent items.
Without causing a net tax increase for residents or seasonal property owners, the operating referendum on the Nov. 3 ballot would bring $325,698 in new revenue to the district. This new funding would be provided through Minnesota’s Seasonal Recreation Property Tax Base Replacement Aid, a program that returns collected seasonal recreation taxes to districts where seasonal recreation properties make up more than 15-percent of the total tax base.
To avoid raising voters’ net taxes, the school district will underlevy its local optional revenue (LOR), the money normally collected from taxpayers, and will instead pass the operating referendum, which would make up for the underlevy while securing additional state aid. The district also already has an operating referendum in place at $347.99 per pupil. It will be replaced with a new levy at $1,775 per pupil.
Some concerns were raised by the board about the language of the operating referendum on the ballot, which is required to state: “By voting ‘Yes’ on this ballot question, you are voting for a property tax increase.” Because the board is underlevying LOR, voters would not actually see a net increase in their taxes, yet the board is concerned that voters may still vote against the new referendum.
If the operating referendum passes, the district would receive additional revenue for the next 10 years.
The board also heard updates on recent construction, which is on track, with progress made on both the softball field and gym ceiling. The project is still within budget and should be completed in a manner that won’t interfere with the fall sports season.
The school district is expected to save money due to recent adjustments in postsecondary enrollment options (PSEO funding). Under the new system, state funds for PSEO enrollments will be directed to the district first, with the college subsequently invoicing for PSEO credits, shifting away from the previous model where funds went directly to Minnesota North for state allocation. This change ensures that any surplus funds remain with the district rather than the college, helping to offset financial losses that have impacted 2142’s budget over recent years.
In other business, the board:
• Accepted the retirement of Troy Chittum and the resignations of Jeff MacKenzie and Emmett Penke.
• Renewed the contracts for head and assistant coaches for fall and winter sports.
• Approved revisions to the employee handbook and student and family handbook.
• Updated district policies related to equal employment, public and private data, chemical use and abuse, maintaining a drug-free workplace, and preventing bullying.
• Approved the purchase of a new bus and van with funds from the capital projects levy.
• Accepted $92,679 in grant money from the IRRRB.
• Approved a MOU between Vermilion Country School and ISD 696 for MSHSL activities.