Dave Setterberg

TOWER— Mayor Dave Setterberg offered an upbeat assessment of the city’s status as part of a “state of the city” report he made to the city council here on Monday.
Setterberg said he was trying to offer the council, most of whom are relatively new, a big picture view of where the city was and where it appears to be heading as a result of a number of changes made by the council over the past few years.
Setterberg reported that the city’s financial picture has improved significantly, mostly as a result of tighter fiscal management. Those improvements range from small savings, like switching the supplies vendor at Hoodoo Point, to negotiating a new police contract with Breitung that is saving the city about $45,000 a year.
He noted that back in 2019 the city was forced to borrow $250,000 from the League of Minnesota Cities to pay its bills, a loan that the city has been retiring at the rate of $50,000 a year ever since. “So, we’re doing pretty good,” said Setterberg. “Because not only in the past did we use all that money, that we’re paying on the loan, we’ve actually been paying it back and have not had to raise the levy whatsoever.”
At the same time, Setterberg noted that the city had spent $60,000 to replace its worn-out grader and is still sitting with a reasonably comfortable general fund balance of $155,667 as of the end of August. He said the city’s revenues through the end of the year, including its December state aid payment, are likely to substantially exceed its expenses, which should further improve the city’s financial picture going forward.
Setterberg noted that the city’s audits have been improving the past few years, with fewer issues of concern and with a big reduction in reported fund deficits, which have been an ongoing complaint from the city’s auditor. He noted that the city’s deficit in its water and sewer account have also declined significantly, mostly as a result of the increase in utility rates implemented this year.
Setterberg also made note of the improvements to the city’s Main Street, including storefront and building renovations and several new businesses. He noted improvements to the Lake Vermilion Cultural Center as well as the historic fire hall, both of which improved the appearance of Main Street and brought workers to town for extended stays. He commented as well on the efforts being made to create new trails and cited the planned kayak route as another way that the community was making Tower a more desirable place to live or visit.
Setterberg cited the city’s wealth of volunteers, including those associated with the cultural center, the historical society, the Vermilion Country School, the Tower-Soudan athletic association, the events board, the food shelf, the various trails clubs, the women’s club, the fireman’s relief association, and the medical loan closet. He also thanked the many volunteers who serve on city committees and commissions, many of whom don’t even live in Tower. “What is really impressive is the number of volunteers we have from across the area,” he said. “There’s a lot of engagement for a town this size.”
The city still does face areas of concern, according to Setterberg. He said the city’s ambulance service has seen its wage expenses jump sharply as it has come into compliance with state law regarding staffing. He is also concerned about the limited staffing in place with the city’s fire department, which is down to a handful of firefighters.
But, overall, Setterberg sounded an optimistic note. “The state of the city is good and we’re turning in the right direction,” he said.
In other action, the council approved a preliminary levy increase of five percent for next year, although councilors indicated they hope to pare that down before approving the final levy in December. Clerk-treasurer Michael Schultz noted that city residents are likely to feel the pinch of higher property taxes next year even if the levy remained the same. That’s because of a nearly $20,000 reduction in the fiscal disparities payment the city will receive next year. The fiscal disparities program has helped reduce the impact of the city’s levy on taxpayers since it was implemented in the 1990s, but due to valuation changes the benefit to most cities in St. Louis County dropped significantly for 2023.
After considerable discussion, the council agreed, on a 4-1 vote, with Setterberg’s motion to boost the levy by five percent. If adopted as the final levy amount in December, the increase would raise about $19,000, or about $3,800 for every one percent. Norby, who voted against the motion, said he wanted a larger proposed increase to provide a bigger cushion in case of the unexpected.
The council also voted unanimously to increase the nightly rate at Hoodoo Point Campground by three dollars. Campground manager Randy Pratt had recommended an increase as other campgrounds had recently boosted their rates.
And given the high demand for camping opportunities, Pratt said he doesn’t expect the rate increase will impact occupancy, which ran at about 90 percent over the summer, but it will likely generate about $15,000 more revenue next year.
Pratt argued that some of that additional revenue should be set aside for improvements at the campground. He said the poor condition of the campground bathrooms is the most common complaint he receives and is hopeful of undertaking a major renovation soon. He also argued for a backup generator to serve the campground during extended power outages, which happen more frequently at Hoodoo Point, which is connected to Lake Country Power, than in town.
A motion by council member Joe Morin to raise the rate by five dollars per night failed to get support, but the motion by Norby to increase it by three dollars passed unanimously. The new rate will go into effect with the 2023 camping season.
In other business, the council:
• Approved the lone propane bid it received, which came from Superior Fuel, the city’s current provider. Superior had offered a three-year locked in contract rate of $1.74.9 per gallon, but the council opted for a one-year price at that rate in hopes that prices will come down over the next year.
• Approved a motion to leave the seaplane docks in place over the winter. The docks had been left in place last winter due to low water levels, without incident. The city confirmed that the city’s insurance carrier would cover any liability or damage stemming from leaving the docks in place.
• Approved spending up to $3,000 to clean out a blocked stormwater drain on N. Third St., near the school.
• Approved looking for grant dollars to help fund the replacement of the roof at the historic train depot and museum. Schultz said the project is likely to cost about $60,000, but that the city is hoping to find $40,000 in grant funding to help cover the cost.
• Approved a new job description and posting for an assistant ambulance director.
• Approved a motion to authorize the clerk-treasurer to request all city staff (paid or volunteer) to review and sign off on the city personnel policy and code of ethics on an annual basis.
• Approved the creation of an ad hoc negotiating committee, consisting of Setterberg, Morin, Schultz, and city attorney Mitch Brunfelt, for the ambulance director’s proposed union contract. The contract has been in limbo for a year.
• Approved the appointment of Beth Debeltz to the TEDA board and Kevin Norby to the airport commission.
• Authorized the maintenance supervisor to determine best options for either fixing or replacing the plow for use on the city’s pickup.
• Authorized the maintenance staff to repair the fence and install signage around the Lee Mine to prevent trespassing and dangerous activities around the former mine pit.