TOWER—The city council here voted 4-1, on Monday, to increase the city’s 2017 levy by 4.5 percent, with the extra dollars earmarked for equipment replacement and economic and community development.

The final levy was the city’s first increase in three years and it represented a reduction from the 10-percent preliminary levy the council had set back in September.

Councilor Joan Broten said she shared the council’s priorities, but wanted to find savings from elsewhere in the budget. The council considered tapping set-aside accounts for roads, civic center repair and maintenance, airport reserves, and profits from the charter school lease, but in the end opted to boost the levy.

“I’ve been through the budget multiple times and I’m thinking there’s no good way to make it work otherwise,” said Councilor Lance Dougherty. “I’ve been of the opinion we need to start taxing a bit more.” Councilor Hiltunen agreed. “The money is going to have to come from someplace,” he said. “We have been arguing about setting money aside for a while. We’ve been sitting at zero percent increases for a while. You could get stuck having to raise taxes a lot more.”

The city is facing higher employee costs next year, primarily for health insurance, as well as a higher salary for the ambulance director.

Ambulance director Steve Altenburg noted that the city has done a good job of cutting its expenses in recent years. “You’ve made it work, but at some point you have to put more money in to do the things you want to do,” he said.

Last year, the city tapped excess funds from the charter school lease to finance $18,000 in economic development assistance from Community Resource Development. But Mayor Josh Carlson said he wanted to use the extra dollars this year to pay off the charter school loan more quickly. The charter school, now in its fourth year, pays the city $78,000 a year under its five-year lease. The city pays $49,500 a year for outstanding debt for converting the former manufacturing facility to the school. About $4,500 is set aside for repairs and maintenance on the building, while the remainder serves as general revenue for the city.

The levy increase approved on Monday will raise about $13,500 more than last year for the city’s coffers. Of that, about $3,000 will be set aside for eventual replacement of the city’s dump/plow truck. While the truck is currently in good repair, according to City Clerk-Treasurer Linda Keith, it is old enough that the city has to anticipate it will need replacement relatively soon.

The remaining funds will be directed to the city’s economic development authority to assist on a long list of projects for next year.

In related action, the council deferred an offer of economic development services from the Tower-Soudan Community Development Corporation.

Instead, Carlson proposed that the council appoint the TSCDC board members to a reconstituted board for the Tower Economic Development Authority. “I think it’s great that we have seven more people who are coming up with ideas for economic development,” said Carlson. TEDA has been inactive for a period of years, but Carlson said the new energy and enthusiasm in the community suggests now is the time to re-engage TEDA. “There’s a lot of interest out there now,” said Carlson, who noted that bringing new businesses to town would help to reduce the future tax burden for everyone by boosting the total tax base.

The council agreed to increase the TEDA board from its current five-member board, comprised solely of the city council, to seven members, which is the current size of the TSCDC board. TSCDC board members concurred with Carlson’s proposal to operate under the auspices of TEDA and the council will make the appointments to TEDA during the city’s reorganization in January.

In other business, the council:

• Heard from charter school director and Councilor-elect Kevin Fitton, who said roof leaks from ice dams continue to be a problem at the school. “We’re going to continue to fight it until it’s fixed,” said Fitton. “Last winter, we had leaks in two places.”

• Approved, on a 4-1 vote, seeking a cost estimates for including space for city hall staff in the new joint facility being planned for the Tower and Breitung fire and ambulance services. Dougherty voted no. Keith argued that the city would save money on utilities and maintenance by incorporating city hall offices into the new facility. Others expressed concern that the planned location for the joint facility, in the city’s new industrial park on the west edge of town, would limit walkability to city offices.

• Approved a request by the Wolf Track Classic sled dog race to use the civic center as a base of operations for its race, set for Feb. 26. The race will pay $250 for rent of the site.

• Declined an opportunity to purchase the 100-foot Main Street lot formerly occupied by the Hardware Hank store for $7,800. The land is county tax-forfeit, and the county had offered the city the right of first refusal before putting it up for public auction. “We have other priorities right now,” said Broten, who made the motion to decline the offer.

• Gave the go-ahead to the ambulance director to advertise a decommissioned ambulance for sale on the state’s surplus equipment auction site.

• Approved hiring three people, including Josh Villebrun and Dena Suikhonen to fill the assistant ambulance director position on an interim basis. Director Altenburg said former director Matt Tuchel has offered to come back as assistant director once he recovers sufficiently from recent shoulder surgery.

• Accepted the resignation of Kalee Bjorgo from the ambulance service. Bjorgo said family commitments prevent her from serving for now. The city will send a letter of thanks for previous service.

• Approved longevity pay of $2,100 each for the city’s maintenance director and city clerk-treasurer. Passage came on a 4-1 vote, with Broten voting no.

• Approved selling a John Deere snowblower attachment for an offer of $1,500.

• Approved the first pay estimate to KGM, totaling $393,536, for the airport hangar apron paving project. The original contract price was $447,767, but it appears the final cost will total $414,249. The initial billing sets aside five percent to ensure completion before the company submits its final bill.