IRON MOUNTAIN — Dickinson County will have a public hearing Tuesday on a 2022 budget that remains somewhat in limbo as an increase in revenues is balanced against a deficit in long-term obligations.

A key concern is the Municipal Employees’ Retirement System of Michigan plan, which has unfunded accrued liabilities estimated at $18.3 million, County Controller Brian Bousley said. The hearing is scheduled for 6 p.m. in the circuit courtroom of the courthouse.

The recommended general fund budget totals $10.79 million, up from $9.82 million in 2021, an increase of $973,000, or 9.9%. Much of the increase is uncommitted as the budget anticipates a 2022 fund balance of $5.21 million, an increase of $909,000.

The surplus includes a carryover from this year and higher revenues from several sources. A sizable payment to the county is anticipated through the community stabilization program, which is part of Michigan’s personal property tax reform enacted in 2014.

The 2022 payment is projected at $1.04 million, up from $750,000 budgeted in 2021. The actual 2021 payment was nearly $1.2 million, which helped the county carry an additional $360,000 into the 2022 budget year.

The county may also tap $200,000 from its Retiree Medical Care Reserve Fund, a move authorized last year to use investment revenues to help meet retiree health costs. The current principal is about $4 million.

The property tax rate to support the budget is 6.1323 mills, or $6.13 per $1,000 of taxable value. That’s down by about 0.1% from the previous 6.1403 mills, a fractional rollback required under the state’s Headlee Amendment.

For a house worth $85,000 and with a taxable value of $42,500, a levy of 6.1323 mills amounts to a property tax of $261.

The total taxable value of properties in the county rose by 2% while general fund property tax revenues are projected at $5.7 million in 2022, an increase of about 1.5%, Bousley said.

State revenue sharing in 2022 is projected a $626,175, a 2% increase.

In late 2020, the county board agreed to maintain an unassigned fund balance of 35%, Bousley noted. Anything over that percentage can be moved into a contingency fund, a retirement benefits fund, or a public improvement fund for capital improvements and maintenance projects.

About a year ago, the board set aside $240,000 toward future retirements costs and a similar move may be expected in 2022.

“The ever-increasing pension unfunded liability will present budgeting challenges each year, but steps have been taken to lower future pension liabilities,” Bousley said in a budget memo to the board.

As of 2018, new employees are eligible only for a defined contribution retirement plan, which is more costly in the short term but saves on legacy costs, Bousley said. Meanwhile, funds will be placed into the county’s retirement benefits fund if a general fund surplus is realized in each fiscal year after the annual audit.

MERS costs in the 2022 budget are pegged at $1.72 million, up from $1.35 million in 2021.

With employee contracts expiring at the end of the year, the county must still settle negotiations with two of the four bargaining units. Wages for employees will account for about 50% of general fund spending, Bousley said.

Health insurance costs are up by about 5% collectively for 2022, with employees paying 20% of premiums.

Also, over the past two years, the majority of positions in the county have had a wage study. A number of positions have seen an increase in pay scale, while a few have remained at the same level, Bousley said.

Turnover is one of the main issues at the county jail, the controller noted. Currently, there are two full-time corrections officer positions the county wants to fill. Additional security projects will be addressed in 2022, such as more cameras and keyless locks and a service mainframe for the jail cells.

Some other budget notes:

— Ford Airport will again receive up to $1 million in federal pandemic relief, which can be used for payroll and benefits, debt service and general operations. A similar allocation in 2021 enabled the county to pay off a loan for a hangar built in 2019, as well as T-hangars financed through the Fontana Trust Fund. Another potential revenue stream is the Law Enforcement Officer Reimbursement Agreement Program, which offers $20 per hour to have law enforcement present during incoming and outgoing flights.

— The county has yet to decide how to spend the nearly $5 million it will receive through the Biden administration’s American Rescue Plan Act. The first step is to calculate revenues lost due to the pandemic, as that amount can be spent any way the county sees fit, Bousley said. Local governments have until Dec. 31, 2024, to obligate all of the ARP funds, and until Dec. 31, 2026, to fully expend them. CliftonLarsonAllen LLP, which has a contract to conduct the county’s budget audits, is serving as a consultant to ensure compliance. ARP monies remain apart from the general fund.

— If a property tax payback is ordered as the result of a Michigan Tax Tribunal settlement, the money would be paid from the general fund.

— Electrical upgrades and water line replacements have been major improvements at Lake Antoine Park. Staffing at the park will be with seasonal employees, plus the support of a courthouse, grounds and park director and a floater between the airport staff. There is an additional maintenance position through courthouse and grounds and the county will also look at hiring a Lake Antoine office manager during the camping season, Bousley said. The county continues to have a long-term goal of a self-sufficient park system.