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TOWER CITY COUNCIL

Council okays 10 percent hike in 2013 levy

Increase is preliminary and likely will be reduced

Jodi Summit
Posted 9/13/12

TOWER— City councilors here approved a preliminary 2013 levy that includes a 10 percent tax increase, but councilors indicated they hope to trim both the city’s spending and the levy before they …

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TOWER CITY COUNCIL

Council okays 10 percent hike in 2013 levy

Increase is preliminary and likely will be reduced

Posted

TOWER— City councilors here approved a preliminary 2013 levy that includes a 10 percent tax increase, but councilors indicated they hope to trim both the city’s spending and the levy before they take final budget action in December.

The proposed levy, of $279,363, is up nearly $32,000 from the $257,615 that was assessed to city taxpayers this year. Every one percent increase in levy raises about $3,000 in revenue for the city. The city’s 2011 levy was $233,768.

Councilors indicated they hope to trim city spending in the year ahead, mostly by reducing city hall staffing, from two full-time employees to one full-time and one part-time worker.

City Clerk-Treasurer Ann Lamppa has told the council she intends to retire next summer. Councilors have yet to formally decide if they will make changes in city hall staffing following her retirement, but have discussed reducing the clerk position to part-time, while maintaining a full-time deputy clerk.

The 2013 budget presented to the council by Lamppa maintains staffing as is, and includes a one percent pay raise for city workers. It also includes $95,000 for the police contract with Breitung, along with $10,000 in other expenses for the police car and maintenance.

Lamppa told the council of some other budget changes for the upcoming year. The biggest is a one-time addition of $15,000 to the levy, to pay for Tower’s share of the cost for the bike trail extension that is being split with Breitung Township. The majority of this project is being paid with grants from the DNR and IRRR.

The city has seen an increase in the cost of electricity, so the budget includes a $3,500 increase for 2013. There is no election in 2013, so this will save the city $1,500. The city fire department has built up a balance in their account, due to lower-than-expected spending this year, so city hall is recommending that the fire department budget be reduced by $10,000.

The budget includes no increases in salaries for elected city officials, or for fire department officials. Staffing reorganization in the ambulance department means the budget for salaries is actually reduced from $32,400 to $30,000, but the department has added some paid on-call which means the amount budgeted for temporary employees is going up from $8,000 to $12,000.

In total, the city’s 2013 preliminary budget totals $1,334,275, up from the adopted 2012 budget of $1,250,658, a 6.3 percent increase.

Revenues

The council didn’t discuss any increases in lease fees or license/permit fees for 2013. The council did agree to stop charging the Tower-Soudan Historical Society $200 a month in rent for use of the Depot. The TSHS will now pay all the other costs associated with the building, such as water/sewer, electricity and phone.

The council did discuss changing the rental fee structure for the civic center, to add an option between the less than four hours rate ($50) or all-day rate ($250). They also discussed the option of charging everyone for use of the building, currently some groups like the Rangewide Seniors and Scouts are not charged a rental fee.

“Everybody that is in there should help pay for it,” said council member Josh Carlson, who noted the building needs substantial repair work done in the future.

The city is estimating it will receive $11,000 in permits and fees, $22,000 in Taconite Aid and $80,156 in Local Government Aid. The city is budgeting $45,000 in cabin lease fees, $5,520 for rental of the liquor store, $2,000 for Civic Center rental, $4,900 from fire protection fees from Kugler Township, and $6,250 from land lease fees from forestry lands. The city is budgeting for $147,000 in revenue from the Hoodoo Point Campground, and $33,515 in revenue from airport lease fees, gasoline sales and other reimbursements. Water and sewer fees are estimated to bring in $214,800.

The city’s total budget fluctuates from year to year, depending on grant income and project spending.