CRYSTAL FALLS—Residents of Crystal Falls could know as early as next week if the former Crystal Manor building will be renovated into apartments and commercial space.

Ron Basso, who is assisting the city council and developers Hovey Company on the renovation, reported the grant application was to be reviewed by the MSHDA loan committee on Wednesday, Aug. 13, and he was led to believe all of the documentation is in order and the committee is ready to approve the loan.

“This is a critical stage of the process,” he told the Crystal Falls city Council during its Aug. 11 meeting. “Because the application then goes to the full MSHDA board on Aug. 27 where it should be approved and a closing date will be set for the loan. The closing should occur in late September, and renovation can then begin.

“We continue to push forward and things are lining up,” Basso said.

The $120,000 MSHDA grant application was sent out Aug. 11, which ties in with the anticipated 10 jobs created at the former Crystal Manor. He said that  Iron County EDC Director Julie Melchiori laid out who will tentatively be coming in to the building, and she is confident there will be 10 jobs created, so the project will be eligible for the full grant.

Basso said he is confident with this project and thanked the council for being so supporting.

“This will be a significant event in the community,” he added

In other business, resident Mickey Diqui wondered when some maintenance work would be done on Johanson Road. He showed the council pictures of a stump in the middle of the road, a large divot and many ridges.

He told the board, “The road was beyond patching, so I got cost estimates for paving. A contractor would charge about $57,000 for materials and labor, while the city could do the work for about $15,000 in materials.”

City Manager Charles Nordeman noted he had considered replacing the water line on Johanson Road, and the road could be done at the same time, but no commitment could be made until the city looks at the funds.

“Several other streets in the city also need maintenance,” he added. “After the auditor comes in in January, I will have a better idea of how much the city will have in the water fund.”

Gail Schneider approached the council expressing concern over the desecration of a family burial plot. A family member was buried in the wrong plot, she said, which caused emotional distress, and she wants the problem corrected.

Turning to agenda items, the council adopted the 2008-09 budget. It has been determined the city needs $5.3 million to defray its expenditures and liabilities. Of that, $2.2 million is earmarked for the electric fund, $1.6 million for the general fund, $472,000 in the water fund, $352,000 in the sewer fund, $228,000 for the television fund, and $192,000 in the major street fund. There are also several lesser funds included in the budget.

The council adopted the tax levy resolution, which notes that $435,000 be raised by taxes, and the taxable valuation for the city is $21.7 million. The city will levy 20 mills against all real and personal property located in the city.

The budget includes a 5.1 percent salary increase for most employees, based on the Midwest Consumer Price Index. Councilor Jack Bicigo noted everyone else goes with the federal Department of Labor index, which is 4.2 percent.

Councilor Mark Valesano said he’s always been an advocate for the employees, but with the state of the city, the cost of health care, and the electric department revenue margin, he would have been more comfortable with a 3.5 percent salary increase.

Concerning employee health care, Nordeman noted the city is looking at $450,000 in premiums, which is more than the city is receiving in taxes. Clerk Dorothea Olson said the new health care plan won’t go into effect in January, so the council should take its time and study the numbers. The board concurred.

The drug card for retirees over 65 years old will be changed, but anything else related to health care will be reviewed during a special meeting called for 5 p.m. on Tuesday, Aug. 26. At that time, the council will also discuss Nordeman’s performance evaluation with him (behind closed doors) and set his and Olson’s salaries.

In other action, deputy Clerk Tara Peltoma was moved up to step 3 and police officer Tim Bean was moved up to step 7 on the pay scale effective October first.

The annual Crystal Falls Fire Authority budget was adopted showing a budget of almost $943,000. Of that, $140,000 goes toward salaries and wages. The city’s share of the funding, Nordeman noted, is about $140,000 and the township’s share is about $150,000.

“This is a major cash drain on the city’s finances,” he said, “along with health care and retirement, so you need to watch these budgets closely. Because if the city doesn’t have enough money, we will be faced with hard choices.”

The council also approved a resolution concerning a proposed non-motorized path which would start at Park Street and go west about 50 feet before continuing on through the township. The path will eventually connect Iron River and Crystal Falls. The city agreed to maintain its small portion of the path, using state Act 51 monies.

Turning to reports, Police Chief Robert Sherwin reported there were a total of 218 complaints in July with four arrests. Troy Nordstrom was recently hired as a new part-time officer, and the 2008 Chevrolet Impala was delivered to the city.

Fire Chief John Ahola reported there were two fire calls in July, a car rollover at U.S. 2 and Kaski Road, and tree limbs were on a power line on east M-69. Approximately 24 man hours were spent at the scenes. Department personnel took part in a practice involving water supply, hose and couplings last month.