Iron County board discusses possible referendum

By RICHARD JENKINS

rjenkins@yourdailyglobe.com

Hurley — There may be a local referendum issue on the ballot next year after the Iron County Board of Supervisors discussed sending a proposal raising the county’s levy limit to voters Tuesday.

Based on the discussion Tuesday, any ballot measure would likely be for the April 2022 election.

Iron County Clerk Mike Saari said the measure would save money in the long run as the county takes out loans to cover needed expenses because those can be added above the levy cap and passed onto taxpayers. The levy would be expected to generate the additional revenue while eliminating the interest payments on the loans.

“Right now, we’re borrowing close to a million dollars every year for placements (in) human services, we’re spending the money anyway. The taxpayers are paying it, plus we’re paying interest,” Saari said.

Now was a good time to start the discussion, Saari said, as this is the last year the bonds for the courthouse expansion will be on the tax rolls.

The combination of those bonds being paid off — which cost roughly half a million dollars each year — and the county no longer needing to borrow money as the way to pass additional costs to taxpayers means a levy increase likely wouldn’t increase the tax rates much from where they are now.

The county spends about $500,000 to $600,000 each year more than is brought in under the levy cap, according to Saari, which forces them to pay roughly $40,000 in interest each year. He said the interest payment each year loosely translates to the cost of a new sheriff’s department vehicle.

“We’re spending it anyways because we’re borrowing it. Even without their permission, we’re still spending it — plus we’re paying $40,000 a year in interest,” Saari said.

The levy cap sets limits on how much tax revenue the county can generate without seeking voter permission for an increase. Under the state formula presently being used, Saari said the county’s levy cap increases about $12,000 each year. In comparison, he said the annual 25-cent raise county employees often receive costs the county $40,000 a year.

Along with ending the need to take out loans as a way to generate revenue, a levy increase would also likely allow some departments that have been understaffed due to the levy limits to hire the additional help needed, according to information presented at the meeting.

Saari said the board would likely vote on putting a measure on the ballot in November to meet the deadlines for the April election.

The board hopes that starting the discussion more than a year before the issue would be on the ballot will give them time to explain the issue to residents.

In other action, the board:

—Approved the fire warden organizational list for 2021. According to information provided to the board, Bob Walesewicz (Carey Mine Convenience), Edith Gillian (Mercer BP), Saxon-Gurney Fire Chief Stacey Ofstad and Carol Caridei (Springstead Trading Post) are the fire wardens.

—Approved the forestry department’s comprehensive 15-year land use plan.

—Canceled any outstanding checks the county wrote for 2019 in the amount of $2,672.

—Voted to cancel a deed restriction on land in the town of Mercer. The deed restriction — which dated back to the 1930s — allowed the county to take sand and gravel from the property, however, there is no longer any way to access the property and the restriction was impending the property’s sale.

—Approved hiring a legal secretary in the district attorney’s office.