BABBITT- Babbitt City Council members approved a preliminary 2027 budget Tuesday that calls for a 7.5-percent increase in the city’s property tax levy.
The $3,422,451 budget is supported in part by a general fund and net tax levy of $1,644,035. The preliminary levy may be reduced when the council adopts its final levy in December, but it cannot be increased.
Police spending represents the largest portion of the proposed budget at $849,209, followed by $687,765 for streets and $298,146 for administration.
Councilors approved the preliminary figures with no discussion after Mayor Andrea Zupancich briefly reviewed the totals.
Outdoor rink to close
The council unanimously voted to discontinue the city’s outdoor skating rink and warming shack following a recommendation from the Recreation Committee.
Committee members concluded that use of the rink did not justify the expense and staff time required to maintain it. Recreation head Caitlin Stern said electricity, propane, and estimated labor cost approximately $8,165 in 2024 and $8,725 in 2025.
Those totals did not include fuel for the skid steer and snowblower, plowing the parking lot, equipment maintenance, hoses, nets, and other expenses associated with operating the rink.
“It does take a lot of work to keep the outdoor rink running,” Stern said. “The people that go there love going there, but it doesn’t get a lot of use.”
Councilor Duane Lossing acknowledged that closing the rink could be unpopular with those who use it. He said money saved should be directed toward increased use of the arena.
One suggestion was to offer additional weekend skating at the arena, although Stern cautioned that existing open-skating sessions have not drawn strong attendance. She said the greater benefit would be allowing recreation employees to spend more time on other arena needs.
Industrial lots retained
Mayor Andrea Zupancich objected to a Planning Commission recommendation to rezone the city’s golf-course industrial lots to conservancy, arguing that the city should not surrender designated industrial space until it has somewhere else available.
The lots had been rezoned to accommodate a proposed business, which is no longer moving forward. Councilor Jim Lassi, who presented the Planning Commission recommendation, emphasized that it was advisory and that the final decision rested with the council.
Zupancich said the city has tried for years to establish a viable industrial area and has already invested money in surveying the lots. She noted that the parcels were specifically created as industrial lots and said rezoning them would leave the city without a ready alternative.
“I think this city is seriously missing out on what’s coming in the future, and I am not in favor of changing these back to conservancy until we have a designated area,” Zupancich said.
Lossing shared her concern, citing the city’s investment in surveying and wetland delineation work. He said the golf-course parcels could remain useful for businesses willing to install their own sewer and water systems.
Potential industrial property near the city’s wastewater treatment plant reportedly has wetland and other development limitations.
The council took no formal action, leaving the industrial zoning in place. Lassi said he would bring a proposed amendment to the property covenants to the next meeting.
The amendment would address a requirement that purchasers install paved driveway aprons. Zupancich questioned requiring that work while the adjoining road remains gravel and could damage newly paved approaches.
Minutes will remain in newspaper
A proposal to stop publishing summary council minutes in the city’s official newspaper failed following a discussion about publication costs and public access.
Zupancich said the proposal was intended to save money and was not an attempt to restrict access to city records. Full council minutes would continue to be available online, and residents could request printed, mailed, or emailed copies at city expense. Required legal notices, including public hearing and election notices, would continue to be published.
Lassi emerged as the strongest opponent of the change, noting that many residents do not use the internet and rely on the newspaper for city information.
“I think we should publish the minutes,” Lassi said. “Not everybody goes online, and I think the weekly is our official newspaper, and we should publish the minutes in our official newspaper.”
Stern also noted that many older residents regularly read the newspaper but do not necessarily look for city information online.
Councilor John Fitzpatrick voted to discontinue publication. Councilor Joseph White and Lassi voted against the motion, while Lossing and Zupancich abstained.
Lassi suggested the city could instead reduce publication expenses by making legal notices shorter where allowed. City staff noted that some notices must include specific information required by law.
Arena improvements considered
The council authorized Stern to ask the Iron Range Resources and Rehabilitation Board to allow money remaining from the arena compressor project to be used for additional arena improvements.
The city received $1.5 million through state legislation for the compressor work, which is expected to finish under budget. The amount remaining will not be known until the project is completed.
Proposed uses for the balance include new lighting, a scoreboard, spectator safety netting, and a heater for the Zamboni room. Stern said lighting would be her first priority because of the potential energy savings.
Authorization to submit the list does not guarantee that enough money will remain to complete every item. The council could prioritize the projects after the final balance is known and continue seeking grants or other matching funds.
Property matters
The city attorney is preparing an addendum involving a five-acre parcel associated with the Babbitt Golf Association lease and property arrangement. The proposal would allow the parcel to be surveyed when the first phase of a related purchase closes or within 90 days afterward, without making the survey a condition of closing. The draft is being reviewed by an attorney for Solomon Holdings and could return for final council approval at the next meeting.
The city also continues to work with St. Louis County and Rich Evenstad on the former roadway behind Cherry Circle. Evenstad said he is leaning toward purchasing the property and granting the necessary easements rather than pursuing a city easement. No action was taken.
Other business
In other business, the council:
• Approved a $698,483.70 payment to Rachel Contracting for the West Babbitt development project, a $107,197.05 payment to Commercial Refrigeration Systems for the arena compressor project, and a $3,600 annual medical-direction payment for the ambulance service.
• Approved monthly wage increases for fire department officers effective Jan. 1. The fire chief’s compensation will increase from $500 to $700 per month, the assistant chief’s from $400 to $600, and fire captains’ from $150 to $225. White abstained.
• Appointed Elise Stage to a Planning Commission term ending Dec. 31.
• The council ended its open meeting by entering a closed session for preliminary consideration of allegations against Zoning Officer Chris Koivisto. No additional information was available.