Ontonagon village discusses debt

ONTONAGON — Ontonagon Village Manager William DuPont called the $3.1 million included in the recently approved state budget toward the debt the village of Ontonagon has to the Michigan Employees Retirement System a “huge step.”

The village has $8.17 million in unfunded liability to the MERS fund. DuPont emphasized it is a “first step” and the village will continue to right the ship.

The budget also includes an opportunity for entities, such as the village, to apply for grants to help communities with their MERS debt. “We expect to apply for such grants, but there is no guarantee we will get it,” DuPont said.

The village is also taking the matter of the debt to the public in the form of two millage proposals on the Aug. 2 ballot. The first proposal is for a countywide millage of 2 mills for six years, raising $573,000 in the first year. The second proposal is just in the village and seeks 20 mills for six years, raising $544,000 in the first year.

Without the state funds and the ballot requests, DuPont expected MERS to take legal action against the village. He feels the grant and ballot requests postponed that action, but he said the village must continue to make progress on the debt.

“I am grateful the state recognized our problem in this regard,” said DuPont.

The MERS debt came as the village assumed the obligations related to the hospital retirement system when the hospital was sold to Aspirus.

—Jan Tucker