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Tax issues on ballot in western Iron County

IRON RIVER — Voters in western Iron County will head to the polls Tuesday to decide two tax proposals: a sinking fund millage for the West Iron County School District and a general operations millage for Iron River Township.

Neither eastern Iron County nor Dickinson County have any proposals on the May ballot.

West Iron School District residents will be asked to renew the existing .4447-mill levy and add an extra .4053 mills — for a total rate of 85 cents per $1,000 of taxable value — to put into a sinking fund for various school maintenance and improvement projects.

The rate translates to about $31.88 in annual taxes for the owner of a $75,000 home, $42.50 for a $100,000 home, $53.13 for a $125,000 home, and $63.75 for a $150,000 home.

If approved, the millage would be collected for 10 years and is expected to generate $223,821 in the first year.

“When schools ask residents for funding, a sinking fund is really the most efficient use of tax dollars because everything goes to school improvements,” West Iron Superintendent Chris Thomson said. “It’s money well spent.”

As Thomson explained, a sinking fund accumulates revenue directly through taxes each year, while a bond involves borrowing money up front and paying it back, with interest, over a period of time.

If the district has a sinking fund for major repairs, it doesn’t have to dip into general operating funds to pay for those projects, Thomson said. And operating funds keep dwindling due to cuts in the state’s per pupil allocation, he noted.

Potential sinking fund projects include replacing carpet in high school hallways, upgrading the high school heating system to a digital format, replacing the high school and elementary school roofs, remodeling sink areas in elementary school classrooms, replacing elementary school lockers, reconfiguring air circulation in the elementary school, putting in a new elementary gym floor, paving the west side of the parking lot, resurfacing parking lots, and general maintenance of boilers, hot water heaters, fencing and more.

Sinking fund money cannot be used for salaries, classroom supplies or technology equipment.

The West Iron School District encompasses the cities of Iron River, Caspian and Gaastra, as well as Iron River, Stambaugh and Bates townships.

Iron River Township will weigh whether to raise taxes by $1.25 per $1,000 of taxable value for three years to fund general operations.

The owner of a home with a $20,000 taxable value would pay an extra $25 per year, a $50,000 taxable value home owner would pay $62.50, a $70,000 taxable value home owner would pay $87.50, and a $100,000 taxable value home owner would pay $125.

If passed, the millage would raise about $68,220 in the first year.

The township had a 2-mill general operations tax years ago, Township Clerk Amber Laturi said, but voters declined to renew it and turned down several attempts by the township board to reinstate it.

In a letter to township residents, the board said it has reduced expenditures but still has a $31,500 budget deficit.

“The township board has been advised by the state of Michigan Department of Treasury that we cannot continue to operate with ongoing deficit spending,” the letter reads. “This notice from the state means that the township must either further reduce essential services or raise revenues through a voter-approved millage increase.”

The millage would eliminate the deficit and support the West Iron County Fire Department contract, operations and maintenance at the township hall and warehouse, the public works department, street lights, the township board, elections, the assessor, the board of review, tax roll administration and zoning.

The township cannot use road, water, sewer or cemetery funds for any of these general fund items, according to the board’s letter.

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