Voters in the Ely School District will have their say this fall on a plan that would pump just over $325,000 in new revenue into the district’s coffers.
School board members voted Monday to proceed with plans for a referendum election in November.
But while, if approved, the referendum would bring more money to the district, it would not raise taxes for property owners.
That’s because of legislation passed earlier this year that was aimed at helping districts such as Ely that have vast amounts of seasonal recreational property.
While the legislation, backed by State Sen. Grant Hauschild (D) and State Rep. Roger Skraba (R), helps Ely, it triggers a complicated process that requires a voter- approved referendum to see an increase in funding.
That process was addressed by school board members at a study session last month, and the board voted this week to proceed with a fall election.
Board members and school officials, however, maintained that efforts to reach and educate district voters will be critical to the success of the referendum and accessing new money for the district.
“We can raise $325,698 at no (tax) impact to any resident or seasonal recreational property owner,” said superintendent Anne Oelke.
As outlined during a board study session last month, the Ely district can generate additional revenue without burdening local property owners due to legislation passed this year.
After earlier attempts failed, Hauschild and Skraba were able to steer legislation that helps districts, such as Ely’s, that have higher percentages of seasonal recreational properties within their boundaries.
The state passed legislation to aid districts such as Ely, which struggle to collect additional revenue from taxpayers because so much property is designated as seasonal recreational. Those properties don’t figure into operating levies passed in local school districts.
Representatives from Ehlers, Inc., a school financial advising firm, indicated that no property owners will be hit with tax hikes as a result of the legislation and instead “state funding will essentially replace what you would receive from seasonal recreational taxes.”
In order to capture the new revenue, the district must raise its current operating levy from $347.99 per pupil to $1,775, and reduce its current local optional revenue levy.
The net result would be no increase in local taxes and new revenue to the tune of $325,698.
If the referendum were to fail, the district would retain its current operating and local optional levies, but would not be able to capture any new revenue.
Oelke outlined how Ely would benefit from the new legislation before board members approved the measure this week.
“Like many other districts we figured out a way we could do it without any tax impact to anyone in the school district, or anyone with seasonal recreational property because of seasonal replacement aid,” said Oelke. “We qualify for this aid. We are one of those fortunate districts.”
Oelke explained that seasonal recreational property owners “will continue to be exempt from operating referendum levies” and “this program provides property tax relief.”
“It’s a great opportunity for districts like Ely,” said Oelke.
Board chairperson Rochelle Sjoberg agreed and said, “In a nutshell it’s a good opportunity for us to not burden the taxpayers and get more state support with $300,000-plus.”
Yet board members also agree that education will be critical between now and November to ensure that district residents understand the impact of the referendum question.
“Education will be the biggest piece,” said Sjoberg.
Oelke said the district will have a levy calculator on the district website, which will show that the tax impact of a “yes” vote is zero.
Sjoberg added that “there are groups in the community willing to help push the message forward.”
