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.
