Serving Gogebic, Iron and Ontonagon Counties
Serving Gogebic, Iron and Ontonagon Counties
By TOM LAVENTURE
Hurley — The Iron County Board of Supervisors adopted the 2022 budget on Tuesday.
The $16,324,722 budget was presented by Iron County Clerk Michael Saari during a public hearing prior to the regular board meeting. The initial budget presented totaled $16,089,722 in expenses, with $10,661,432 in revenues and an allowable levy of $5,428,290 to make up the difference.
The budget was adjusted prior to the meeting to reflect expenditures including $220,000 for construction of a 160-foot communication tower in Pine Lake that was approved at the October county board meeting. The amended budget also includes the Iron County Transportation Coordinating Committee request of $15,000 for the transportation assistance service program budget.
“It doesn’t change the levy at all because we’re at our levy cap,” Saari said. “It just increases how much we take out of the general fund balance.”
The general fund expenditure increased from approximately $867,000 to $1.1 million and would be a problem were it not for anticipated funds from the forestry carbon credit capture project starting in January, he said. The county board approved the project between Bluesource LLC and Iron County Forestry in September and is expected to generate $11 million for the county over 10 years.
The budget also includes $552,000 that was already received from American Rescue Plan Act funds, he said. Another $552,000 for the general fund is due in June 2022.
Throughout the year, the county has applied revenues toward loan principal amounts for the highway department and human services whenever possible, Saari said. Lowering the principal amount reduced the monthly interest paid by nearly half to $10,000.
The budget is also dependent upon an anticipated $4 million in relief from the Federal Emergency Management Agency, Saari said. If that amount is less than anticipated the budget shortfall will need to be made up through annual stumpage revenues or a loan.
The county mill rate decreased by 15% over the past two years, Saari said. The 5.26 mill levy this year will amount to $376,000 less revenue than the previous year, he said.
That is partly due to a smaller levy, but it is also that the equalized valuation is now over $1 billion. As that number gets higher, the mill rate will come down because it is spread over a bigger supply.
The budget vote was 13-0. Board members Karl Krall and Larry Youngs were not present.
In other business, the county board approved:
—A road use permit to Tyler Kettlewell.
—The Iron County Forest administrator to submit 2022 grant applications.
—The signatory for the American Carbon Registry.
—The 2022 forestry work plan.
—A $637,307 loan with Chippewa Valley Bank at 2.75%.
