Ontonagon Village Council increases millage rate to 15
The Ontonagon Village Council met, via telecom, on March 22. Under unfinished business on the agenda was the matter of the Municipal Employees Retirement System (MERS) obligation. It was reported that the village made a payment of $21,441.31 on March 16 which covered the payment that was due on Oct. 20, 2020. The total amount past due is $104,308.23, and the intention is to continue “chipping away” at this past due amount. The past due amounts break down as follows: Nov. 2020, $32,350.08; Dec. 2020, $36,541.12; and Jan. 2021, $35,417.03.
The village was advised that this matter is now being referred to the MERS Legal Department for legal action, and late fees will be applied. Interim Manager William DuPont had a meeting on March 10 with the MERS representative to discuss options to reduce the payments. These could include freezing the current plan and negotiating different retirement options as well as possible buy-outs.
The council, among other business items, moved to the next needed step:
• Resolution 2021-09: Authorization of the 2021-22 Tax Levy: This item was considered absolutely necessary and is a first step in addressing the MERS obligation. After all available alternatives had been considered, the village council adopted the following resolution:
WHEREAS, pursuant to Section 14(1) of Act 621 of the Public Acts of 1978, the Interim Village Manager, as the Chief Administrative Officer, has prepared and presented to the Village Council with a balanced budget; and
WHEREAS, on March 22, 2021, the Ontonagon Village Council approved a general appropriations act for Fiscal Year 2021-22 authorizing the expenditures of the Village funds; and
WHEREAS, the millage rate necessary to raise revenues for Village operating and debt retirement purposes:
NOW THEREFORE, BE IT RESOLVED, the Village Treasurer is hereby authorized to levy and collect the following millage rates for the 2021-22 Fiscal Year:
GENERAL FUND OPERATION & DEBT: 15.00 Mills
TOTAL: 15.00 Mills
This is a tax increase from the current 11 Mills to the maximum millage allowed without a referendum vote. This resolution (tax increase) had to be passed by a two-thirds majority of the village council present and voting, which in this instance would require four out of the six council members present to vote for approval of the resolution.
It was moved by Trustee Sarah Hopper, supported by Trustee Mike Rebholz to adopt the resolution. The actual vote was unanimous in favor.
• Resolution 2021-10, Deficit Elimination Plan: This resolution was to address a deficit fund balance in the Marina Fund of $119,023. This deficit was reported in the recent auditors findings. The Michigan Department of the Treasury requires a deficit elimination plan to be in place and filed with the department.
The deficit was the result of a MDNR grant that was obtained to pay for the Marina Dredging project. Due to an oversight, the final grant report was not submitted on time, however, the MDNR agreed to extend the deadline and the grant funds recouped present a balance of $35,453 as of March 31, 2022. Simply put, completion of the grant “paperwork” resolves the cause of the deficit. The Deficit Elimination Plan will be submitted to the Michigan Department of the Treasury.
It was moved by Trustee Elmer Marks Jr, supported by Trustee Don Chastan to adopt the resolution and carried on a roll call vote.
• Resolution 2021-11, Authorization of General Appropriations for April 1, 2021-March 31, 2022: This is the budget authorization, based on a millage rate of 15 mills. Without listing each fund, the bottom line is a total of $3,422,321 in General Fund revenue with $3,248,650 in total expenditures.
It was moved by Hamm, supported by Chastan to approve the General Appropriations Resolution, and was carried....this constitutes the budget adoption for the forthcoming fiscal year.
The Council adopted a final resolution, designating March 31 as Jan Tucker Day in the village.
VILLAGE OF ONTONAGON
RESOLUTION NO. 2021 – 12
A RESOLUTION TO DESIGNATE MARCH 31, 2021 AS ‘JAN TUCKER DAY’ IN THE VILLAGE OF ONTONAGON.
RECITALS
WHEREAS, Jan Tucker has been a long-time resident of the Village of Ontonagon and has established herself to be a beloved local personality, and
WHEREAS, Jan Tucker has served for 60 years as a local newspaper reporter, relating local news stories to the residents of the western end of the Upper Peninsula of Michigan, and
WHEREAS, Jan Tucker has worked diligently as part of the Labor Day Committee for over 57 years to ensure the success of the Labor Day celebration in Ontonagon, and
WHEREAS, Jan Tucker has been an active member for over 50 years of the Ontonagon County Cancer Association that provides funding and support for local and Ontonagon County individuals and families living in Ontonagon County who have been afflicted with cancer, and
WHEREAS, Jan Tucker has demonstrated her love and commitment to her community with her membership, in company with her friends, neighbors, leaders, and problem- solvers in the community who see a world where people unite and take action to create lasting change, and
WHEREAS, Jan Tucker has demonstrated her personal values by serving her faith community as a CCD instructor and as an Eucharistic Minister for Holy Family Catholic Church, and
WHEREAS, Jan Tucker has enthusiastically been a part of the Ontonagon Area High School Scholarship Committee that provides support and educational opportunities to our community’s younger citizens, and
WHEREAS, Jan Tucker participated in many other community activities and organizations that included the Ontonagon Golf Club and the Women’s Club, and
WHEREAS, Jan Tucker has spent 57 years as a local radio personality providing recipes, commentary on local and national events, and personal insight on virtually every topic known to mankind, and is retiring from this unique service on March 31, 2021.
NOW, THEREFORE, BE IT RESOLVED, the Village of Ontonagon Council of Trustees declares that March 31, 2021 shall be designated as ‘Jan Tucker Day’ in the Village of Ontonagon.
• At 6:43 pm Council went into a closed session to discuss client/attorney matters regarding former Village Manager Joseph Erickson. Council returned to the open session at 7:11 p.m..
President Tony Smydra called for a motion to rescind the council’s termination of Joseph Erickson and this was forthcoming and carried.
At this point, President Smydra, acting on his authority as Village President, suspended Joseph Erickson, with cause, with pay, and declared the intent of taking up the matter of providing Erickson with a hearing and to afford the council the opportunity to consider his employment status. The meeting was adjourned at this point. It was 7:13 p.m.
Ontonagon village president questioned about firing of village manager
In a brief question and answer session, Ontonagon Village President Tony Smydra addressed questions surrounding the firing of Village Manager Joe Erickson.
Q) The Feb. 25 special meeting of the village council was called in something of a hurry with a posting only at the village offices. What precipitated calling a meeting on such short notice?
Smydra: “I called for a special meeting because it was discovered that the final payment for the Marina Dredging grant had not been received. To receive the payment, the village would have to pass a resolution and agree to sign a contract extension. I did not feel it was wise to wait for two weeks for a regular Council meeting to address the matter.”
Q) The posted agenda only mentioned one item, Marina Grant and other related issues. How did this come to include the firing of the Village Manager on such short notice?
Smydra: “After we passed the resolution and agreed to the contract extension with the DNR, there was a discussion on what happened – What was the reason the village had not received the final payment? As a result of the discussion, it had become clear that Mr. Erickson had not submitted the required paperwork. As he was the responsible party and the potential financial implications to the village, his employment was terminated”.
Q) Did former Village Manager, Joe Erickson, have any intimation that this special meeting would end with his termination?
Smydra: “I wouldn’t think so as no one would have had any such intimation. His termination was a result of the discussion that followed the passing of the resolution and the extension of the contract.”
Q) The final vote was split, with three votes to fire the Manager and two votes against. Obviously, there was some reluctance on the part of two trustees to take this action. In view of the fact that you had only five out of seven council members present, it seemed that this decision was being made in something of a hurry, however, there seemed to be no real effort on the part of the dissenting trustees to table action on the firing until two new trustees are seated in March. Comment, please?
Smydra: “Currently, our council consists of four trustees and myself. Two additional council members will be seated on March 8th. To conduct any business, a quorum of four council members is required. We had a quorum and conducted business with 5 members as we have done since Maureen Guzek’s passing. Nothing was done “in a hurry.” We addressed a situation as it unfolded before us.”
Q) We have been given to understand that Mr. Erickson’s termination was on the basis of his mismanagement of an MDNR grant that is paying for the dredging of the Ontonagon Village Marina. Specifically, how many dollars did this involve and will the village be able to recoup these grant funds?
Smydra: “If my memory is correct, it was something in the range of $134,000. Yes, the village will recoup those funds. That was the purpose of the resolution and the contract extension. We now have until December 31, 2021, to submit the required paperwork to secure those grant funds.”
Q) It must be clarified for our readers: is Mr. Erickson under suspicion of any criminal mishandling of Village funds?
Smydra: “Oh, goodness, no! I am not aware of any allegations of that nature. The action on the part of the village council was simply a direct response to a specific situation related to the marina dredging grant. We will be getting those funds once the village submits the appropriate paperwork.”