HOUGHTON –During a special meeting of the Houghton County Board of Commissioners Thursday, the board passed seven resolutions in an effort to correct the county’s various financial deficits.

The first was Resolution #25-13, which concerned the Passenger Facility Charge (PCF) fund at the Houghton County Airport.

“We receive income from each passenger that boards a plane,” County Administrator Chelsea Rheault explained. “Due to timing issues of receiving the federal money, we went into a deficit … it was probably 2022 when it first, more recently happened, it’s been in a deficit for a couple years now.”

Houghton County usually receives this money in late fall, which causes timing issues with the budget. When a county fund goes into a deficit, the Michigan Department of the Treasury requires the fund comes out of a deficit within five years. “So we can correct [this deficit] by not spending that money for one year?” Commissioner Glen Anderson asked. Administrator Rheault affirmed this.

The Board passed #25-13, which approved a projected budget that will eliminate the PCF deficit in FY2025.

Also on the agenda was Resolution #25-15, which increased the service cost of the Houghton County Solid Waste Transfer Station by 15% beginning on Aug. 1, and an additional 7.5% annually on Oct. 1 from 2026-29.

The station’s budget fell into a deficit in part because of aging unpaid accounts and an increase in operational costs.

The Jail Commissary deficit was addressed as well. The jail recently had “multiple large capital expenditures,” Rheault said.

“They purchased a different type of vending machine, I believe it had e-cigarettes if I remember correctly. Another one of their capital expenditures was…I think they had some sort of computer system that they could have inmates text with people in the public.”

To resolve the deficit, the jail has agreed to not make any more large capital expenditures, and a budgetary change was approved for FY2025.

Finally, the Board passed a resolution to borrow up to $500,000 from the Delinquent Tax Revolving Fund (DTRF). This money will be used to pay the $202,491.33 owed to the Tri-County Public Defenders (TCPD) for February, March, and April. The no-interest loan will have to be repaid to DTRF by June 26, 2026.

“That’s a princely sum, and I think we should be aware of the fact that the state doesn’t…they didn’t have a rule not allowing the country to forward money like that in a circumstance like we find ourselves in.” said Chairman Tom Tikkanen. “But they have given special consideration to Houghton County’s circumstance right now. That is all contingent on the state accepting our most recent report that’s been sent in.”

“That’s been done under very close scrutiny,” Tikkanen continued. “…and the risk is minimal. Nevertheless, we do have to borrow this…so I just wanted that to be made very clear to the public.”

When Tikkanen asked why the payments were originally put on hold, Anderson said it was because the county “didn’t have cash.” Anderson also reminded Tikkanen that the county would have to pay TCPD for several more months, per their contract.

“We’re betting on the MIDC (Michigan Indigent Defense Commission) releasing the money before we get to the end of the fiscal year.” Anderson said. This money would then be used to help pay TCPD.

TCPD’s Dave Gemignani tried to assay the MIDC concerns during the public comment period, saying he’d been personally assured by a deputy director at MIDC that they will “make the county while with regards to this funding issue here. There shouldn’t be any concerns about that. She did reiterate that to me a couple of times in the conversation.”