The city of Ely’s property tax levy for 2026 is going up, but not quite as much as initially proposed.
After some further refinement by the city’s budget committee, the city council voted Tuesday to authorize a 2026 levy of $2,429,800.
That’s a 5.06 percent increase from this year’s levy of $2,312,700.
Earlier in the year, the council set a preliminary levy calling for a 6.5 percent increase, but the city was able to make further adjustments to the budget to soothe the impact for local property owners.
“I would just like to thank all the department heads,” said council member John Lahtonen. “They all came together.”
And though the city will collect more in property taxes overall, most local property owners will actually pay less in city taxes.
That’s due in part to a $60,112 increase in fiscal disparities funding from the state of Minnesota, which offsets local taxes, as well as a better than 10 percent increase in overall tax capacity in the city.
Taxable market value within the city limits climbed by $21.7 million to $257,774,709.
Tax comparison statements released at the city’s Truth in Taxation hearing a week earlier showed the impact of the levy and the various changes.
City property taxes on a $100,000 residential property will dip from $242 this year to $226 in 2026.
The decline is nearly $40 on a $150,000 home, while the owner of a $200,000 home will see their city taxes go from $1,153 to $1,092.
Once county, school and other taxes are factored in, city property owners will see overall declines in property taxes ranging from $49 on a $100,00 home to $143 on a $250,000 home.
Even commercial property owners are set to see some relief in 2026, at least in Ely.
City property taxes remain nearly even, with the owner of a $200,000 commercial property seeing a $9 drop in city taxes and an overall decline of $61 next year.
The city’s property tax levy will be divided among the general fund, library, cemetery, debt service, capital projects and equipment replacement budget.
While council members spent much of their meeting discussing various other matters (see related stories), Mayor Heidi Omerza took time to stress the importance of the levy vote.
“I know there’s going to be a lot of people reporting about a lot of things,” she said. “This is probably the dullest thing, but it is the most important thing.”
