IRON MOUNTAIN — Officials in Iron Mountain and other Michigan municipalities are keeping a close watch on state legislation that would create a grant program to reduce pension debt.

City Manager Jordan Stanchina told the city council Monday that House Bill 5054 could be a big help in stabilizing the city’s finances. “It would really solve a glaring hole,” he said.

The supplemental spending bill provides $1.15 billion in grants to local governmental units to bolster their pension programs. The Michigan Municipal League has applauded the legislation, which is now before the Senate Appropriations Committee.

While there are a number of strings attached, Stanchina estimated the grant program could deliver $3.5 million to Iron Mountain’s pension plan.

The bill provides $900 million in grants for local units that have pension plans funded at 60% or less. Iron Mountain’s Municipal Employees’ Retirement System pension plan was considered 36% funded in 2020, with the city currently committed to payments to make it 60% funded by 2033.

In addition, the legislation provides $250 million for grants to local units with pension systems funded above 60%. Another part of the bill would deposit $350 million into the Michigan State Police retirement system.

The $1.5 billion total cost would be paid from the state general fund surplus and not from federally allocated COVID-19 relief funds.

The Michigan Association of Counties said it was still reviewing the bill’s benefits to counties and the potential interactions with bargaining rights.

The legislation passed the state House a week ago on a 71-33 vote, with all Upper Peninsula representatives in favor.

State Rep. Stephanie A. Young, D-Detroit, who voted no, said the bill was put forward without negotiations with the Senate or Gov. Gretchen Whitmer’s office. She predicted “a slow death in the Senate because the work wasn’t done on the front end to ensure support.”

In other action Monday, the Iron Mountain City Council:

— Agreed to continue a memorandum of understanding with Bird Rides to allow the company to make electronic scooter rentals available in the city. The program was introduced last summer and will return this year. The city has no financial involvement and rentals of the GPS-monitored electric vehicles are processed through a cell phone app. The minimum number of scooters will be reduced from 50 to 25.

— Again received a request from Superior Selections for a marijuana dispensary license. Rize and Lume Cannabis have the city’s only retail licenses, awarded through a competitive process, while Superior has one of the city’s five growing and processing licenses. Superior co-owner Dan Kreider said it’s unfortunate that Superior’s products are not being sold in the local dispensaries despite being well-received in other areas of the state. Mayor Dale Alessandrini said the council intends to take up the matter, which was first presented Feb. 21.

— Approved a request from the Iron Mountain Road & Trail Half Marathon Race Committee to have its 10th annual race Sept. 24. The route requires some street closures, including the outer east lane of Stephenson Avenue from A to Third streets from 8:45 to 9:45 a.m. The race previously finished on Iron Mountain Street but a new route will have runners coming down East A Street, with the finish line near Moose Jackson Cafe. East A Street between Stephenson Avenue and the west curb of Iron Mountain Street will be closed from 6 a.m. to 1 p.m., along with Iron Mountain Street from A to Hughitt streets.

— Noted that, as in past years, garbage collection will be moved temporarily in the spring from the alley to the street. No date has been determined, but Facebook and a Daily News notice will be used to announce the change.