Serving Gogebic, Iron and Ontonagon Counties
Serving Gogebic, Iron and Ontonagon Counties
By P.J. GLISSON
Hurley — Finance Committee members of the Iron County Board of Supervisors voted last week to refer Phase 1 of the county’s budget reconciliation plan to the full board for approval.
The action at the March 14 meeting occurred after committee member Kurt Wolff presented the conclusions of Phase 1 to fellow committee members.
“We still have about a million and a quarter budget deficit, so we still have a ways to go,” said Wolff regarding the county’s financial status upon completion of Phase 1, during which reductions were negotiated in multiple departments.
As part of his assessment, he removed potential carbon credit income — a national windfall that is expected but not guaranteed — from projected revenues. For now, within the budget, that is a loss of $2,355,198.
Wolff also provided a refined list of goals for the county.
The first is to create a capital fund, which would allow the county to better plan, fund and account for capital improvements. Right now, said Wolff, big ticket items are “getting lost” in the regular budget.
His second goal is to establish an investment policy that maximizes returns. “There are programs out there that allow you to have liquid cash and earn much more than we now do,” he said, adding that finance committee members should discuss the matter at their next meeting.
Wolff’s third goal is to set up a county committee to identify each year’s audit findings. He said that the county cannot have material weaknesses, adding, “The balance sheet is a critical element in how you manage a business.”
Fourth among Wolff’s goals is to determine the best use of the county’s remaining funds from the American Rescue Plan Act. “I really believe the remainder of ARPA funds need to be used for items within the budget,” he said. “We’re not in a position for wants.”
As No. 5, Wolff said the county needs to pay off the remainder of the Saxon Harbor loan, which was taken out in order to rebuild the harbor after a 2016 storm. Even after accounting for federal assistance in covering that expense, he said the county still is estimated to owe about $2 million.
Regarding his sixth and final point, Wolff underscored the importance of controlled spending, adding that some county departments have overrun their respective budgets by tens of thousands of dollars.
Finance Committee Chairman Scott Erickson reminded that money for each department tends to come in at various times of the year, depending on when grant funds are received, and those variations affect ongoing budget numbers. “That was the answer we were always given,” said Erickson.
Moreover, County Interim Clerk Christan Brandt said that an accurate picture of the budget does not yet exist in the final month of the year because the budget is not yet finished.
“Budget reconciliation at the end of the year was traditionally how we handled unexpected expenses,” said Erickson.
Wolff concluded that the county has a number of procedural matters that should be addressed as part of budget reform. For instance, he said, “We have some very antiquated systems such as how we process payroll.”
Erickson thanked Wolff for his efforts on Phase 1 of the budget reconciliation and added, “That’s a better than I expected first step on this.”
Wolff said that Phase 2 now will focus on resolving the county’s remaining deficit.
When asked his financial expertise by committee member Thomas Thompson Jr., Wolff said he earned a bachelor’s degree in business from the University of Wisconsin-Whitewater and spent 35 years running the finance department of a company for which he was a part owner. That company, he added, had $50 million in revenue.
The Iron County Board of Supervisors is now expected to address Phase 1 at its March 26 meeting in the county courthouse.
