City approves 4.5 percent tax levy increase citing pressing need to act on economic development
DECEMBER 12, 2016—The Tower City Council quickly abandoned its idea of a zero-percent levy increase, Monday, as it pushed upwards the bottom line of the 2017 budget by four-and-one-half percent. One percent of the increase will be earmarked for eventually funding a replacement to the city’s large plow truck and three-and-one-half percent is to be dedicated to funding the Tower Economic Development Authority (TEDA).
City Clerk–Treasurer Linda Keith originally presented the council with a proposed expenditure budget of nearly 1.8 million dollars. The city council was resolute in its desire to hold the line on increasing the levy until Timberjay publisher Marshall Helmberger approached the council in November seeking $10,000 for his newly formed Tower-Soudan Community Development Corporation.
It is assumed that TEDA has been largely inactive since the city council disbanded the seven member board and took the responsibilities for the authority upon itself, appointing the entire city council to serve on the TEDA board. The last minutes of the authority published on the city’s website are dated April 15, 2013 and it is not clear what activities, if any, TEDA has undertaken since that date.
Mayor Josh Carlson told the council that he had met with Marshall Helmberger and that he is now recommending that Tower-Soudan Community Development Corporation take over TEDA. Carlson said that the city council placed itself on the TEDA board because the authority was not meeting. “I don’t have any funds earmarked for economic development. If you want to look for those funds look to the $6,000 in the TEDA budget,” Carlson said. There is $6,000 in TEDA, leftover after the charter school project, Carlson said. He went on to propose that the city council increase the tax levy by 4.5 percent, utilizing one percent for the plow truck replacement and 3.5 percent to further fund TEDA.
Alderman Joan Broten restated the council’s earlier position on holding the line on an increase to the tax levy. “I don’t want to see a levy increase,” Broten said. Alderman William Hiltunen cautioned the council against sticking to a zero-percent-levy increase. “If you don’t raise incrementally, with a small percent increase, then you get stuck with a large increase down the line,” Hiltunen said.
Mayor Carlson emphasized that it was time to act on economic development. He said that there was a lot of interest in development right now. “Interest on development is starting to peak,” Carlson said.
“Business owners think Main Street taxes are extravagant already,” Alderman Broten said. Mayor Carlson insisted that you need to expand to entice business. “Every business you add helps everything,” Carlson said. “You want to keep the people who are already here, you don’t want to lose them,” Broten replied. “You might only increase taxes by $40 in town, but then taxes at Mill Point Plat might go up by $400,” Broten told the council. She also reminded the council that Northwoods True Value was already paying over $20,000 in property taxes.
“I’ve been on the band wagon that we need to increase taxes—a little bit here,” Alderman Lance Dougherty said acknowledging that he would support some amount of increase to the tax levy.
Mayor Carlson reiterated that it was imperative for the city to act on economic development. “There is a lot of interest out there. The more places that pop up on Main Street the better it is for everyone,” Carlson said.
Alderman Dougherty cautioned, however, “We can’t have what has happened in the past. We can’t have the $10,000 get us nowhere,” Dougherty said. Of course, the past he referenced involved the city paying $35,000 to Community Resource Development to have Gary Lamppa consult on the Tower harbor project.
Mayor Carlson moved to increase the tax levy by 4.5 percent as he already proposed. Aldeman Hiltunen supported his motion. Calling for the vote the motion was approved with the only dissent coming from Alderman Broten who voted against the tax levy increase.
Working on ambulance staffing the city council approved appointing two assistant directors for the Tower Ambulance Service. The appointmentsare caused by the vacancy left following Steve Altenburg’s moving into the Ambulance Director’s position, moving up from assistant director. Dena Suihkonen was appointed an assistant director and Josh Villebrun was also appointed as an assistant director. Both candidates bring needed experience in different areas, Altenburg said, emphasizing that these were interim positions. “Perhaps Matt (Tuchel) will come back and we might want to break up the duties between three people,” Altenburg said. Other ambulance employees are Kim Mattila, ambulance working supervisor, and Nick Levins, ambulance training director.
Alderman Hiltunen moved to accept Altenburg’s recommendation for the appointments and Alderman Dougherty supported his motion. The motion passed unanimously.
While considering the budget the city council set ambulance employees salaries. Altenburg recommended the following monthly pay:
• Ambulance Director—$1,800
• Ambulance Assistant Director (Suihkonen)—$400
• Ambulance Assistant Director (Villebrun)—$300
• Ambulance Working Supervisor—$300
• Ambulance Training Director—$500
Alderman Hiltunen made the motion to accept the recommended ambulance salaries and Alderman Dougherty supported the motion. The motion passed by unanimous vote.
The city council also passed a motion setting the recommended Union AFSCME and Minnesota Association of Professional Employees longevity pay for the maintenance director and city clerk–treasurer, respectively. Alderman Brad Matich’s motion to approve the recommendation was supported by Alderman Dougherty. The motion passed with the only dissenting vote coming from Alderman Broten.
Early in the meeting the city council discussed St. Louis County’s offer to sell the empty lot created by the demolition of the old hardware store on Main Street. The county’s asking price is $7,800, according to City Clerk–Treasurer Keith. After lengthy discussion the council determined that it wanted to save money for economic development and that it would decline to purchase the empty lot. Alderman Broten made, and Alderman Hiltunen supported, a motion to decline the county’s offer. The motion was passed by unanimous vote. It is expected, and the council hopes, that the county will soon offer the lot for sale by land auction further spurring economic development on the Main Street.
In other action, the council:
• Unanimously approved allowing the Wolf Track Classic Sled Dog Race use of the Tower Civic Center on February 26, 2016. The group applied for a special event permit with the city requesting use of the civic center in 2017
• Approved payment of $393,536.99, ninety-five percent of the total amount due, to KGM Contractors, Inc., for work completed on an apron reconstruction at the Tower Municipal Airport. According to Jason Chopp, representing the city’s engineering firm Short Elliot Hendrickson Inc. (SEH), the total amount due for the project is $414,249.46, however five percent is being retained by the city until it can be affirmed that the site restoration work has been completed to satisfaction. Chopp explained that SEH wanted to make sure the grass seeding and other site work was acceptable following the spring melt. Clerk–Treasurer Keith told the council that the project came in under budget.
• Acknowledged correspondence from Tower-Soudan Singers; Tim Tomsich of the Vermilion Housing Authority; Dick Larmouth; Ellie Larmouth and Marshall Helmberger
• Tabled a request from Altenburg to list the unused Ford ambulance for sale by auction and asked Altenburg to return to the next meeting with more information including an updated current book value for the ambulance
• Tabled a request for an airport hangar lease transfer pending the receipt of paperwork documenting the request
• Approved the sale of a surplus John Deere snow blower attachment at the offered price of $1,500
• Accepted the resignation of Kalee Bjorgo from her position as an Emergency Medical Technician on the Tower Ambulance Service
• Approved the minutes of the November 28 regular meeting of the Tower City Council
• Approved the payment of all current claims presently due by the city.