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Tower council OKs preliminary levy increase of five percent

Aloysia Power
Posted 9/11/14

TOWER – After flipping through the draft of the city’s 2015 preliminary budget and much discussion, Tower City Council agreed to raise the preliminary city tax levy by five percent for next …

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Tower council OKs preliminary levy increase of five percent

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TOWER – After flipping through the draft of the city’s 2015 preliminary budget and much discussion, Tower City Council agreed to raise the preliminary city tax levy by five percent for next year.

The most notable change in the preliminary budget is the increase in money allocated toward the general fund, from $560,000 to $597,000. City Clerk Linda Keith, said the change reflects expected equipment upgrades for the city, including the replacement of the maintenance truck.

“If we don’t sell it now while it’s looking good and running, we won’t get anything for it,” said Keith.

Before finalizing the preliminary budget, council also agreed to add a line item in the expenditure budget specifically for the replacement of city vehicles, set at $5,000.

Other changes in the budget reflect the increasing costs of electrical power. Funding for the electrical costs of street lighting are set at $17,000 for 2015, a significant increase from the $15,950 set aside in 2014.

The Tower ambulance equipment fund is also set to rise, from $230,000 to $269,000, due to a record number of runs in 2014. Every year since approximately 2010, Tower ambulance has seen an incremental in runs, according to Keith. The Tower ambulance also needs to invest in additional life-saving equipment.

The preliminary budget will be passed on to the state for approval at the end of the month. The final levy will be adopted in December. At that point in time, the council will have the option of reducing, but not increasing, the preliminary levy amount.

In other news, the council:

• Is expected to award the East Two River dredging project contract to Marine Tech at its meeting on Monday night. Marine Tech had the lowest overall bid for the project at $1.8 million, but agreed to a city request to reduce the scope of work to the amount the city has in funding currently, about $1.1 million. The city expects to receive the dredging permit before Monday. The U.S. Army Corps of Engineers has approved the environmental assessment and just needs to sign the permit, according to Keith.

• Accepted the bid of current Hoodoo Point Campground managers, Randy Pratt and Julie Kranz, to continue running the campground for the next two years. Pratt and Kranz bid $37,800 for 2015, up about 15 percent from last year’s bid, plus sought the use of one side of a seasonal dock in the contract. Pratt and Kranz said they topped the campground’s previous record revenue of $171,380 this summer, bringing in over $200,000. The Hoodoo Point committee will negotiate details of the final contract with the managers.

• Will wait until the spring to reconstructTower’s ambulance garage building that was damaged in a fire on the Fourth of July. In the meantime, the building’s committee is deciding between a Morton building with a second story, or installing a building similar to what is there now. The new garage will need to house three ambulances. The city will put the current garage up for bid once insurance clearance is achieved. The building was quoted by the insurance company to be valued at $99,000. Its demolition was quoted at $33,000.

• Permitted Leone Graf and Nancy Larson to move forward in seeking grants to restore the Tower Depot Museum building. Graf, a local building restoration specialist, and Larson, a local grant writer, said they want the restoration to be 100 percent grant-funded. Graf said the depot is the oldest public building north of Duluth and its restoration would ensure it as a long-term tourist attraction. Graf said the building is currently in good condition, but said it won’t stay that way for long. The problem is, the museum’s basement walls have been undergoing water damage from rain and spring melt-off over the years due to a drainage problem on the road. Larson and Graf asked the council to consider fixing the drainage problem before the building restoration project begins. The two women will look into a dehumidifier for the basement in the meantime.

•Requested that the ISD 2142 School Board sell the Tower-Soudan School football field to the city for $1. If purchased, the city would be able to fix up the property and turn it into a central public park. The city envisions using it for Little League baseball, family picnics and eventually as a playground area.

• Approved the EMS application of James Battin under the conditions of a one year probationary period. Battin already holds an EMT license.

• Will meet on Monday, Sept. 15 at 5:30 p.m. and again on Sept. 29 at 5:30 p.m.