Iron County passes nearly $20 million budget for 2023

By P.J. GLISSON

news@yourdailyglobe.com

Hurley — The Iron County Board of Supervisors voted to approve a 2023 budget of nearly $20 million at its Monday evening meeting.

The vote followed a related public hearing in which Iron County Clerk Michael Saari presented the numbers.

“It came out pretty well,” said Saari, despite the county projecting $19,917,378.47 in expenses next to revenue of $14,221,583.47.

According to Saari, the difference of $5,695,795 was the actual tax levy.

However, he said that was mediated by an increase of $166,910,300 in equalized valuation or estimated property values.

Hence, Saari said that — although the tax levy for 2023 is $267,000 higher than in 2022 — the millage rate dropped by about 50 cents from last year’s rate of 5.26.

“We’ve been as high as 6.50,” said Saari of the millage rate. “Now, it’s down to 4.75 (per $1,000 in land value), which is good.”

Saari also reported a total debt levy of more than $1 million, or specifically $1,173,809.11.

That total arises from $864,357 for Iron County Human Services, $215,247.11 in a highway garage loan, and $94,205 in 2023 interest for the county’s loan for Saxon Harbor.

In separate but related action, the board voted to approve a loan with Chippewa Valley Bank for $833,313 for 2023.

After the meeting, Saari explained that the loan will cover one year of Human Services expenses from 2021, or $781,112.63, along with $51,200 for five months of 2021 interest still remaining from 2021 for the Saxon Harbor loan, and 3.85% on the 2023 loan.

He said the 2021 sum for Human Services was needed to cover long-term hospital placements, as ordered by the court system, for local children or adults.

“The county has to pay for it,” said Saari of the costs that he stated are not covered by state or federal funds.

Moreover, he said, “You can’t just add that over your levy cap.”

Hence, he said the county undertakes a related loan each year and is obligated to pay the corresponding interest on top of the hospital expense.

On the other hand, Saari reported to the board several bright spots relating to recent or pending budget boosts from expected carbon credits, as well as from ongoing federal COVID-19 funds that now also include Native American-related allotments.

Board member Scott Erickson asked about the status of COVID funds, and Saari said that the county has to institute a plan for the use of remaining COVID funds by the end of 2023 and that those funds have to be used by 2026.

After the meeting, Saari said that about half of $1.1 million that the county has received in COVID funds already has been used within the restricted parameters, which include communications improvements. He cited radio transmission work at Pine Lake as one example.

The clerk said the county also benefitted by having placed COVID funds in a money market fund.

Now, said Saari, additional COVID funds also are being allotted in relation to Native American interests. As a result, he said that local officials learned only recently that Iron County will receive another $100,000 between now and the start of 2023.

“We got the minimum,” he said, explaining that counties with Indian reservations received substantially higher funds. He noted that, on the high end, states such as Arizona and Florida will receive multimillions, due to multiple reservations there.

According to Saari, additional good news is that the federal government is beginning to “ease up” on how local governments can use COVID funds.

Carbon credit funds also stand to provide considerable financial benefits. Those pending funds relate to an agreement that Iron County recently made with Blue Source, a carbon development firm in Salt Lake City, to create carbon projects that could result in financial paybacks for the county.

“We haven’t received any yet,” Saari told The Globe, but he added of the expectation, “We have $1.5 million in the budget for 2023.”

During the meeting, board member Opal Roberts asked whether carbon money is guaranteed.

“Well, it’s a signed contract,” said Saari.

In other news, board member Pat Hanson reported that the Gogebic-Iron County Airport Board received only two applications for the open position of airport manager.

“We had a review and decided not to take either one,” said Hanson. “We’re going to repost it.”

“I was really glad to see that,” said County Board Chairman Joe Pinardi, who emphasized that it’s better to continue searching for the best candidate rather than hiring someone without the needed qualifications.

“You’ve got a great interim manager,” said Pinardi of Todd Richter. Pinardi added that Richter and office manager Kristi Freeman will maintain stability at the airport.

Board member Brandon Snyder also pointed out that the airport is growing at a notable pace. “We’re the fastest growing airport on this side of the country,” said Snyder.

Board members also:

—Voted to fund $11,852.23 through Delta Vision to cover eye insurance at a 90% level for Iron County employees, who will cover the remaining 10%. Dental insurance also was on the agenda, but Pinardi suggested delaying that issue for now.

—Voted to approve the hiring of CliftonLarsonAllen, a Minneapolis-based firm, to complete audits from 2022-2024.

—Voted to approve $20,000 and $7,600 from recovery funds to cover, respectively, a county transportation contract and to pay for 911 upgrades.

—Voted to approve a road use permit for Monty Gilliam, in order to allow him access to his land in Oma’s Section 13.

—Voted to sell a garage at 18 Nipigon St. in Gile for $2,500 to Daniel Walowinski Jr. of Hurley.