TOWER— There was good news and bad news in the city audit this year, which was released Monday by Walker-Giroux and Hahne. The audit cites continued deficit spending in several accounts, although the audit results often don’t coincide with actual operating budgets nor cash flow. On the plus side, the number of issues raised in the auditor’s management letter fell to five, a significant improvement over the city’s peak of 18 items five years ago. The remaining items are longstanding and relatively minor issues that don’t have easy fixes.
The city council will have the city auditor, Devin Ceglar, give his annual audit presentation at their August meeting and the Timberjay will have more specifics on the audit once city officials have had an opportunity to review it for accuracy.
In other action, the council voted to a change in the city’s livestock ordinance to make way for chickens in the community, although the initial reading of the ordinance likely isn’t the last word. In a two-step process, the council also voted to amend the city’s Ordinance 20, to strike the longstanding prohibition on chickens.
At the same time, the council gave a first reading to a dense, five-page chicken ordinance that includes an unusual list of prohibitions, including a prohibition on the sale of eggs, the sale of chickens, or the harvesting or butchering of chickens within the city limits. The ordinance also prohibits children under five or adults over age 65 from handling chicks due to concerns about the spread of disease. The ordinance also includes a long list of requirements for constructing a coop, including specifications regarding nest boxes, roosts, and ramps, as well as proper protection from snakes. Electric or fueled heaters in or adjacent to the coop are strictly prohibited under the proposed ordinance.
City residents would need to apply for a license to keep chickens under the new ordinance and the council reviewed a license application prepared by city officials.
The council may consider changes to the ordinance prior to giving it a second reading in August. The council is under a strict 60-day timeline to complete adoption of the ordinance, which was the subject of a recent citizens petition which, under the city’s charter, requires the council to allow chickens or face a special referendum election to give city residents a vote on the question.
“We don’t want to be in a situation where we have to call a special election and bring this to the public if we can avoid it,” said clerk-treasurer Michael Schultz.
Council member Joe Morin, who has spearheaded the new ordinance, said he and council member Kevin Norby have met with the petitioners to discuss the language and that they significantly expanded on a one-page proposal provided by the petitioners.
Other councilors raised questions about enforcement of the new ordinance and noted that the city was already dealing with violations of the existing ordinance, since some residents have been keeping chickens for months.
“It seems like a great way to have trouble between neighbors,” said council member Bob Anderson.
“What fun would it be without that,” quipped council member Josh Zika, prompting laughter from the council.
Ordinance 20 does require the city to maintain an animal control officer, although it has failed to designate one for years. Schultz said the city could ask police chief Dan Reing to address any violations of the new rules.
In other business, the council:
• Heard from clerk-treasurer Schultz, who noted that this year’s legislative session did approve significant new funding streams for small cities, including an increase in local government aid, or LGA, public safety aid, and the creation of a new small cities assistance revenue stream funded by taxes on online purchases. The city is slated to receive an additional $18,641 in public safety funding, $10,706 additional in LGA, and $21,858 in one-time small cities assistance, for a total of $51,205.
•  Heard from Schultz that he and ambulance director Dena Suihkonen recently met with TransMedic president Beth Beik to establish new rates for ambulance calls outside city limits. He said the new rates are in line with what other area services charge for calls outside city limits. According to the most recent audit, the ambulance service continues to lose money on its operating budget, mostly due to the cost of depreciation (which totaled $54,430 in 2022) and the new methods of accounting, which no longer include township contributions as operating revenue. In the past, the city used to include the township contributions as operating revenue and did not track depreciation, which inflated apparent margins. The townships contributed less in 2022 than in past years because Greenwood Township is no longer contributing.
Mayor Dave Setterberg said the city is currently developing some new spreadsheets that suggest that by better managing schedules and pay rates, the city could make the system financially sustainable.
The council also discussed the status of a proposed joint powers agreement. To date, both Greenwood and Vermilion Lake townships have declined to take part in the joint powers, while Breitung and Eagles Nest are on board with the idea. Kugler Township has yet to take a position.
• Voted to authorize Setterberg and Schultz to make a bid award decision for work on the train depot roof. The bids are set for opening on July 12, and Schultz said it would be best to not have to wait until the council’s Aug. 14 meeting to approve a contractor for the job.
• Heard an update from Schultz on the trailhead project, who said he had no recommendation on the proposed Green Flush toilet system. City officials are still waiting to know the final costs of the road work associated with the related kayak launch before committing to the construction of a new toilet. “We should know the final numbers, soon,” he said. Given the time delay from ordering to delivery, Schultz said the city is looking at 2024 for installation of the facility in either case.
• Approved a motion to retain Benchmark Engineering for $6,250 to develop a proposal the city could use to apply for a DNR regional trails grant. The city may be able to tap some IRRR funding to help pay the cost of the grant work.
• Heard that the city’s housing partnership team could use another council member. Morin, who is leading the effort for the city, said it does represent a considerable time
• Heard from Setterberg that the city’s request for $1 million to install a fourth sewage treatment pond had been approved by the U.S. House.