Serving Gogebic, Iron and Ontonagon Counties
Serving Gogebic, Iron and Ontonagon Counties
By PAMELA JANSSON
Ironwood — The Ironwood City Commission voted Monday evening to approve a budget of nearly $30 million for the fiscal year of 2024-2025.
The budget total represents an increase of 57% over the 2023-24 budget of $18.6 million.
The action — which included approval of related millage rates and city fees — followed a public hearing that included a budget summary by Paul Linn, city finance director and treasurer.
No public comment occurred.
“The proposed millages remain exactly the same as last year,” said Linn.
The city’s operating millage remains at 19.2 mills with a public safety pension millage of 6.5 and remaining millages under 2.0 for the Carnegie Library, the Pat O’Donnell Civic Center, the Downtown Ironwood Development Authority (downtown district only) and street improvement.
The millage total comes to 29.6415 mills.
Linn shared a chart with commissioners as he outlined differences between the new and existing budgets.
He said that an increase in taxable values, investment income, service/rental charges and Act 51 revenue — along with new funds from marijuana excise taxes — helped to increase the 2024-25 budget.
Likewise, in relation to expenditures, Linn said the new fiscal year also will cost the city more in operating expenses, with $1,142,000 reserved for general government and $1,145,000 reserved for public safety. Linn added that increased wages are part of those expenses.
Linn said the water utility fund saw “a very significant increase.” That budget rose in both revenue and expenses from $3.6 million in the 2023-24 budget to $16.6 million in the 2024-25 budget.
The finance director attributed the $13 million rise in water utility income to a Consumer Price Index rate increase and to grants for the city’s new water plant and Phase 5 plans. He said the related rise in expenses also was due to the water plant and Phase 5 projects.
Property taxes represent the highest source of revenues — at $2.3 million — among general funds.
Linn said that the new fiscal year budget reflects excise taxes from two marijuana businesses so far. He added that, in the following fiscal year, the city will gain excise taxes from five marijuana businesses.
Also among expenses in the new fiscal year are the following allotments: $1,534,000, major streets; $980,000 local streets; $286,000, recreation and culture; and $200,000, Riverside Cemetery.
According to a city calendar, budget planning began on Jan. 23 with department heads registering preliminary budget needs, followed by commissioners’ goal-setting workshops in January and workshops in May.
The budget also was available for public review during the week before the public hearing.
