IRON MOUNTAIN — The millage rate for city government in Iron Mountain will stay flat this year as the impact of employee and retiree health insurance remains substantial.

Effective July 1, the city will experience a 14.1% increases in health insurance rates, after a decrease of 2.59% the prior year, City Manager Jordan Stanchina said.

The millage rate approved by the city council following a budget hearing Monday is 21.1421 mills, or about $21.14 per $1,000 of taxable value. There were no public comments.

Stanchina noted the cost for retiree health insurance represents 12.28% of general fund expenditures. The total is nearly $1.25 million, an increase of about $90,000. The cost for active employees is $633,479, up from $504,182.

Beginning in 2009, the city took steps to eliminate retiree health insurance as a benefit. In addition, current employees contribute 20% towards their health insurance costs and those eligible for retiree health insurance will carry that contribution rate during retirement.

The city continues to seek alternative providers that can offer comparable coverage at a lower cost, Stanchina said. An actuarial study estimates the city’s total overall liability for retiree health at about $34 million, which is down from $35.5 million the previous year, he added.

Total general fund spending is projected at $9.565 million for the next fiscal year, an increase of 1.55%. State revenue sharing paid to the city is projected at just over $1 million, an amount that’s been mostly the same since 2023.

Meanwhile, the city’s taxable value has increased by 3.23%, climbing to $334 million. This increase is above the Michigan State Tax Commission’s inflation rate cap for taxable valuation of 2.7%, Stanchina said.

The estimated unreserved fund balance as of June 30 will be $3.73 million, and the budget proposes it remain at that level for the next year. The city’s policy is to maintain a fund balance of at least 25%.

Police and fire department spending is estimated at about 43% of the budget, while public works represents about 19%. The city continues to list 45 full-time employees — 14 in public works, 13 in police, nine in fire, 6 in administration, two clerical staff and one police clerical staff. Part-time permanent employees include six firefighters and two in the Downtown Development Authority.

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Jim Anderson can be reached at 906-744-2772, ext. 85226, or janderson@ironmountaindailynews.com.