TOWER— The city council here, on Monday, approved a surplus 2024 budget that calls for spending of $2.055 million with anticipated revenue of $2.102 million. The revenue forecast includes a local tax levy of $414,736, a two-percent increase over last year, which the council approved as well as part of its budget actions.
The city’s improving budget picture comes in part thanks to a slew of additional municipal funding approved by the Legislature during the most recent session, which will add about $90,000 to the city’s coffers in the coming year. Clerk-Treasurer Michael Schultz outlined some of the new revenue sources for 2024, including a $21,678 payment for small cities assistance and $18,642 in public safety aid. Both of those payments are one-time only, at least under current law, but they’ll provide a boost for the city in 2024. The city is also anticipating a $10,700 increase in its local government aid allotment, while lease increases approved by the council will raise a bit under $12,000 more next year.
Schultz told the council that the budget includes $120,000 in unallocated discretionary funds that the council will have available in 2024 to finance projects or cover unanticipated expenses. He recommended that the council track those funds if and when they do opt to use them over the course of the year. “That will create a little more work for the council, but it improves transparency,” he said.
The 2024 budget includes the city’s final $53,000 payment on the $250,000 emergency loan that the city took out from the League of Minnesota Cities back in 2019 to help pay bills in the midst of one of the city’s worst financial crises in decades.
Schultz said the city still has a way to go to fully restore its fiscal health. “But, overall, we’re continuing to move in the right direction,” he said.
In other budgetary action, the council approved a $5 per quarter increase in the city’s sewer rate, which will help to bring the sewer fund more in line with expenses. The rate increase is expected to balance the books on the operating expenses, although it won’t cover the depreciation expense. The council also approved closing a fire department bank account that has been unused for years. The approximately $26,000 left in the account will be transferred to the city’s general fund but will still be allocated for the fire department.
In other business, the council reviewed an updated inventory list from St. Louis County for the public works facility which the county is planning to finish vacating next month. Schultz said city maintenance supervisor Ben Velcheff had inspected the equipment that will be left behind at the site and determined that there is considerable value. Among the equipment to be left is an overhead crane, an arc welder, drill press, central air compressor, flammables cabinet, and newer overhead heaters.
The county has indicated that it is willing to sell the property to the city for the appraised price of $260,000. Council member Bob Anderson said he’d like to see more information on the operating costs of the facility. Norby questioned whether the acquisition made sense for the city. “We’re a small town and getting smaller. Is this really the right move?” he asked.
Others on the council were more optimistic, citing some of the planned development that is expected to get underway along the riverfront and harbor in the next year or two.
Mayor Dave Setterberg agreed the council still needs more information before moving forward. “The first thing is negotiating a price and then mapping it all out,” he said.
In other business, the council:
• Took no action on a proposal by SEH to re-bid the planned drinking water treatment plant for $4,500. Some on the council questioned the expense, given that the materials needed for the bid process were already developed. The council opted to take no action until the Tower-Breitung Waste Water Board decides how it wishes to proceed. An earlier bid for the project came in at nearly twice the engineer’s estimate, leaving an enormous funding gap that the communities are not in a position to fill.
• Opted to put a pause on a proposal to add additional camping sites at Hoodoo Point Campground due primarily to the anticipated expense.
• Reported on the performance review of the clerk-treasurer and indicated mostly glowing reviews, while also receiving good feedback on things on areas for improvement. Setterberg recommended more training for the clerk, including training on Banyan, the city’s financial software, as well as attendance at the “clerk school” put on periodically by the League of Minnesota Cities. At the same time, the council approved a seven percent increase in his salary.
• Opted to put the airport’s courtesy car up for bid with a minimum bid of $2,500. The vehicle is a 2004 Volkswagen Passat with 84,679 miles on it, but a laundry list of issues, including old tires and non-functioning heating and air conditioning. The vehicle “blue booked” out at just under $3,000 for a private sale.
• Unanimously approved a 2024 contract for up to $8,000 grant writing services from Nancy Larson. A total of $3,000 of that may be reimburseable through the IRRR.
• Briefly discussed the process for selection of the city’s official newspaper. Schultz said from his perspective having ready access to all the city’s legal notices online is very helpful. The city’s current official newspaper does not maintain a working website and does not post current legal notices.
• Approved a reapplication to the CDBG program for utility projects on S. Second and S. Third Streets.
• Authorized the city to apply for a $20,000 MPCA stormwater grant.