IRON MOUNTAIN — Facing a significant increase in health insurance rates after two straight years of declines, the Dickinson County Board plans to meet in person for a discussion on its 2021 budget.

Rather than having a budget meeting via Zoom, the board has tentatively scheduled a planning session for Dec. 8 at the Norway fairgrounds.

Commissioner Joe Stevens noted Monday the county faces an estimated 16% increase in health insurance costs, which he finds alarming.

Controller Brian Bousley said the increase is due to utilization. In recent years the county has purchased high-deductible Blue Cross/Blue Shield plans combined with Health Savings Accounts or Health Reimbursement Accounts. An agreement in November 2018 reduced premiums by 10.5% for 2019 while 2020 premiums were down 2%.

The 2020 general fund budget totaled $9.75 million, with wages accounting for nearly 46% of county spending, while fringe benefits represented 39% when retiree costs are included.

Wages for county employees will rise 2% next year, which is the final year of a four-year labor agreement with bargaining units. A public hearing on the 2021 budget will be scheduled later in December.

Despite cuts in state revenues related to the pandemic, the county expects to get through this budget year without a deficit, thanks to federal CARES Act distributions.

The board Monday made adjustments in the 2020 budget to maintain a fund balance level of 35% of planned expenditures. About $1.2 million will be taken out of the fund balance, with $659,547 set aside for public improvement or capital projects; $299,794 allocated for contingency or “rainy day” needs; and $239,835 going into a post-employment benefits fund.

The latter fund is meant to help with future Michigan Municipal Employees Retirement System payments, Bousley said. The county’s MERS pension plan has unfunded liabilities of roughly $15 million.

In other action, the board:

— Agreed to potentially use investment revenues from the retiree health care trust fund to help meet retiree health costs. The current principal of $3.7 million would remain intact. The county is contracting with Mercer, a human resources consulting firm, to administer health care benefits for county retirees who are eligible for Medicare. The plan is expected to lower costs, with no reduction in benefits, but trust fund revenues could make up the difference if benefit shortfalls do arise, Bousley said.

— Accepted a quote of $11,127 from Superior Steel Systems of Iron Mountain for construction of a connector building at Ford Airport. Jeff Raboin Construction of Goodman, Wis., offered a slightly lower price of $10,815. Commissioners decided the difference was too small not to choose Superior, which has done other work at the airport. The project is pending permit approval.

— Authorized Bousley to purchase or lease a new pickup truck for the airport.