The Babbitt city council will challenge a DNR ruling that it overpaid a number of cities, counties and school districts. The agency now wants the funds returned.
The Minnesota Department of Natural Resources miscalculated multiple years of mining revenue distributions. The DNR gave $2.7 million to Range counties, municipalities and school districts that should have gone to a statewide education fund, with most of the overpayments occurring from 2022 to 2024.
Clerk Nancy Sanford said the reconciliation of the DNR, where funds were given to the city, and the agency now wants the money back. Babbitt owes $23,735.30 while Nashwauk owes $205,076.69 and Biwabik has to pay back $134,046.58. The St. Louis County school district 2142 owes $50,399.74. St. Louis County owes $1,082,891.90 while Lake County owes $21,776.14. Sanford said other impacted cities are fighting the repayment.
“Let’s join those other cities,” said council member Duane Lossing.
“In a worst-case scenario, we should request a payment plan,” said Mayor Andrea Zupancich. “It wasn’t our fault.”
The council voted not to pay back the monies and “join the fight not to.”
Sanford updated the council on thanking ambulance employees who have been stepping up and taking a lot of on-call hours.
She said she emailed council members on Oct. 10 where a payroll mistake was made in the software involving a benefit that had a cost to the employer. She said the cost to the city would be $600 for five employees. The cost ranges from $75 to $150 per employee and the city doesn’t know if claims were made by any employee. However, she said it was unclear if the employees wanted to sign up for the coverage. She said the handwriting was in the former clerk’s handwriting and listed medical, dental and vision. This was extended coverage beyond what the city normally provides.
“I think there was confusion,” said Sanford.
She said the city could cancel the policies and get two months of premiums back. She recommended the city go to each employee to cancel or retain the coverage. If they want to retain it they can pay the premiums and reimburse the city.
The council agreed and passed a motion based on Stanford’s recommendation with a maximum cost of $600 to the city.
Sanford said the city was paying sales tax on a contractual service for several years and the city has applied for $5,000 in refunds from the state.
The council also selected five applicants for the campground manager position: Ryan Wass, Jessica Peterson, Timothy Campbell, Daniel and Elizabeth Dahlen and Jeffery Phetterplace.
In addition to the applicants for campground host, the council also reviewed a cancellation policy for reservations.
The council accepted the resignation from Troy Bissonette as chief of police. His letter was dated Oct. 15 with a final work date of Oct. 31.
Todd Heikkila was appointed interim chief effective on Nov. 1.
Zupancich said the council will now require a sign-in sheet for attendees. Administrative assistant Kirsten Traut said the police was taken from the League of Minnesota Cities. An addition was made to have a sergeant-at-arms for assistance with the removal of a disruptive speaker. Sanford said the sergeant-at-arms could be an on-duty police officer, as an example.
White said the mayor can use the gavel as well. He added that he has never felt threatened at a council meeting, although some people get emotional at times.
The council accepted the city council procedural policy.
In other business the council:
• Accepted Joe White’s resignation from the ambulance department and two-year leave of absence from the fire department.
• Accepted the immediate resignation of Philip Ruelle from the police department.
• Accepted Cody Siebert’s resignation from the ambulance department.
• Approved the arena club use agreements with the Babbitt Blue Line, Babbitt Figure Skating Club and the Ely Blue Line.
• Approved selling advertising space on four-foot by eight-foot banners at a cost of $500.
• Sanford said the supervisors’ union found another payroll error where the chief of police was being paid more than what the contract states. However, there were notes madethatmatchwhathewasbeing paid. She said a memorandum of understanding is being drafted to resolve the issue.
• Approved the purchase of a $41,730 skid unit for the fire department following a $40,000 grant from the federal government. Fire chief Tony Chamberlin said the unit turns a utility truck into a firefighter apparatus. He said the department has a 2013 Freightliner truck already for this. Chamberlin added the unit can be used for wildland fires and the city can receive income based on usage. The council congratulated Chamberlin on getting the grant.
• Heard there has only been one chicken permit issued to date. Traut said one person has picked up the forms.
• Held a closed meeting for “preliminary consideration of allegations or charges against an individual subject to its authority.”
• Set the next regular meeting for Nov. 6 at 5 p.m.
