IRONWOOD, MI - Wednesday, May 14, 2008 - The Ironwood City Commission and City Staff held another budget workshop last night at 5:30 in the Women's Club Room on the second floor of the Ironwood Memorial Building.

In attendance were Commissioner Tom Laabs; Commissioner Suzanne Toth; Mayor Bruce Noren; City Clerk Karen Gullan; Utilities Director Bob Tervonen; City Manager Scott Erickson; Ironwood Public Safety Director Bob Erspamer; Financial Director Julie Frederickson; City Assessor/Building Inspector Dennis Hewitt; Bookkeeper Pam Zupan; and Project Supervisior Don Bertels. Commissioners Bob Burchell and Gemma Lamb were both excused. Representing the press were Superior Chronicle Photographer Steve Frank and yours truly. There were no other reporters present, and there were no members of the general public at the meeting.

The general consensus at the meeting was that the City is experiencing a serious money crunch. Revenues from property taxes and State revenue sharing have basically flat-lined, although just about every expense has increased.

Across the board cuts were discussed at last night's workshop. Health insurance coverages throughout the City may be changing. Changing policies to higher deductible coverage could save the City money. Union contracts outline certain guidelines for such coverage. The City would have to reimburse employees for the difference in deductible coverage as needed, however, unless every employee suddenly needs health-care, the City could save money.

The City is considering a reduction of overtime by fifty percent. IPSD Director Bob Erspamer pointed out at the meeting that the Public Safety Department has severely reduced its budget over the past couple of years. He said that most of his department's over-time is out of his control. Police and fire protection are still required on weekends and holidays. Holiday pay is mandatory no matter what. When a fire call comes in, it's important to have enough manpower to do a proper job. Erspamer pointed out that there have been an unusually high number of fires this year, and that fires are costly to fight. He pointed out that the budget numbers that were presented at the meeting were not his numbers.

To see a breakdown of the Ironwood Public Safety Department's overtime hours, please [CLICK HERE].

Commissioner Toth told the attendees of the meeting that she feared the high number of fire calls may be a result of the high cost of home heating. Bob Tervonen, who is also a volunteer firefighter, agreed. He said he's seen things at fire calls he's never seen before. A number of fires in the City were a result of space heaters and alternative heating sources this year.

Water and sewer rates will be going up. Equipment rental; charges for Freedom of Information Act requests; notary services; park fees and charges; cemetery and burial fees; zoning charges as well as site plan review fees will all increase.

The Commission and City Staff will be hashing out every option in an attempt to balance the budget. They will try to avoid elimination or reduction of services wherever possible, however, it may be necessary to go so far as to close some of the City's neighborhood parks, and start reducing the lighting of City streets.

Run away inflation is affecting just about every aspect of life in America. Gasoline, diesel, and home heating fuel prices are financially crippling middle America. The State of Michigan is one of the most financially strapped states in the union, and the City of Ironwood now must face the music. To see documentation of last night's budget meeting [CLICK HERE].

Jim Albert