TOWER — With little discussion, the city council here approved a separation agreement that pays the city’s former ambulance director $25,000 to settle potential claims from her termination from city employment earlier this year.
A city personnel committee met March 2 with former director Dena Suihkonen, her union representative, and a state mediator and the parties were able to reach an agreement that should resolve most potential city liabilities stemming from Suihkonen’s discharge. Suihkonen was partially paralyzed in a freak accident last July and the city terminated her in January over her inability to complete some portions of her job.
The $25,000 payment releases the city from most claims, with Suihkonen’s rights to file for PERA disability, unemployment, and worker’s compensation still intact. But all potential claims stemming from her dismissal were released under the agreement.
Suihkonen agreed to maintain all the city’s proprietary and confidential information related to her service confidential and both parties agreed to a mutual non-disparagement clause.
City officials maintain that they agreed to the settlement to avoid excessive litigation expenses as well as resolving alleged wage and benefit back pay, separation disputes, and to protect the public reputation of the former employee and the city of Tower.
The agreement becomes effective after a 15-day waiting period during which either party could withdraw from the deal, an outcome that appears unlikely in this case.
In other EMS business, the council, after considerable discussion, agreed to a proposal by interim ambulance supervisor Jen McDonough to increase rates to be more in line with other area services. McDonough, who undertook an extensive analysis of neighboring departments, told the council that its current service and mileage rates are well below recommended levels and about 43 percent below the average of rates charged by neighboring departments. She found that the city’s mileage rate of $30 was also 12 percent below neighboring departments.
John Van DeVoort questioned whether the change might not put more financial burden on uninsured individuals in the area, while not necessarily raising much additional revenue for the department. He noted that Medicare and Medicaid, which pay for about two-thirds of ambulance patients, have set payment schedules that won’t change regardless of what the city charges. The higher charges would likely increase payments from privately insured patients, but he noted that many insurance plans have high deductibles that might leave the burden of a more costly ambulance ride on the backs of patients who can’t afford it.
But McDonough noted that the ambulance currently operates in the red, which requires a city subsidy to maintain it financially. She said adjusting rates will increase reimbursements from private insurance companies in many cases as well as from the Veterans Administration, which, unlike Medicare and Medicaid, pays 100 percent of the billed rate.
She indicated those increases will help reduce the taxpayer subsidy required to maintain the service and help to ensure its long-term sustainability.
In the end, the council agreed to increase rates to three times the allowable Medicare rate for residents and 3.5 times the Medicare rate for non-residents. But the motion also requires the issue come back on the agenda in six months to determine whether it has, in fact, generated more revenue.

City audit
The council gave approval to a draft of its 2024 audit report, which was completed by the city’s new auditing firm of Schutz CPA. The audit report differed from year’s past, when the auditors generally issued unmodified opinions of the various city accounts.
This year, the auditor issued qualified opinions on several city accounts, including governmental activities and business-type activities, along with the airport special revenue fund, the Tower-Breitung Waste Water capital project fund, and the ambulance fund.
“We are unable to form an opinion due to the inadequacy of the accounting records,” noted the auditors.
The auditor did provide unmodified opinions for the city’s general fund, TEDA special revenue fund, commercial rehabilitation fund, historic harbor capital project fund, both the water and sewer funds, the Hoodoo Point enterprise fund, and the airport fuel fund.
The audit also noted four recurring material weaknesses in the city’s financial management, including incomplete bank reconciliations, lack of segregation of duties as well as other accounting weaknesses, due mostly to limited or inadequately trained staff. The auditor also cited material non-compliance with two state requirements and two federal requirements related to contract bid laws, prompt payment of claims, tracking of federal funds and program requirements.
Mayor Dave Setterberg credited new clerk-treasurer Tammy Mortaloni, who took over in late December 2025 with helping to resolve many outstanding issues that auditors had raised during its examination of the 2024 records. He also said he found the new auditor to be much more thorough than the city had experienced in the past. “I think it was a good thing that we had to change,” he said.
In other business, the council:
• Approved the purchase of five sets of wildland fire personal protective gear for the Tower Fire Department, at an estimated cost of about $4,800. That’s three less than the eight sets requested by fire chief Steve Freshour.
• Heard that the Green Flush company had sent new heaters and toilets to repair damage done earlier this year when the existing heaters in the new bathroom facility near the civic center failed during a cold snap, causing the porcelain in some of the toilets to break when the water froze. The facilities have since been repaired and are back up and running.
• Noted that the boiler repair at the civic center will be getting underway within days.
• Approved the expected mileage charge for Mortaloni to attend the loss control workshop sponsored by the League of Minnesota Cities, set for April 28 in Hinckley.
• Approved listing the city’s old ambulance on an online sales site.
• Gave formal approval to a long-delayed lease between the city and D’Ericks.
• Accepted a $7,500 donation from the Bois Forte Band for the Tower Fire Department.
• Approved a new 100-hour annual contract with Nancy Larson for grant writing and management services, at $75/hour.
• Approved an agreement with McDonald and Mack Architects for work on the historic depot. The $17,700 cost of the contract is fully covered by a grant.