TOWER— After considerable discussion, the city council here adopted a three percent increase in its levy for 2026. That was a significant reduction from the six percent preliminary increase the council adopted in September, and it reflected the council’s desire to keep property tax increases in check at a time when other jurisdictions, like St. Louis County, are proposing double-digit increases for next year.
“I want to keep the increase as small as possible,” said council member Bob Anderson. Council member John Van De Voort agreed, noting the hefty increase planned by St. Louis County for 2026. “I don’t want to be the next one to come in with a big ‘ouch,’” he said.
Council member Kevin Norby noted that the city will have some significant added expenses next year, including the start of bond payments for the new public works facility as well as the city’s new dump truck.
Mayor Dave Setterberg noted that the city will have some new sources of revenue starting next year, including a full year’s proceeds from the Gundersen fund as well as a $30,000 signing bonus for the lease extension for the cell towers on the city’s north side. He noted that the city no longer is paying off its loan from the League of Minnesota Cities, which had cost $50,000 per year.
In the end, council members were comfortable trimming the levy increase and all voted in favor of three percent, a number that will raise an additional $12,900 for next year.
In other action, the council approved a resolution expressing its intent to relocate city hall to The Old Fire Hall, which has been refurbished as part of a multi-year project undertaken by the Tower-Soudan Historical Society. The historic hall, which is on the National Register of Historic Places, was built in 1895 and is the oldest public building north of Duluth. It originally served as Tower’s city hall, fire hall, and jail.
The resolution, which is non-binding, is needed to apply for funding to complete the renovations that would be needed to make the facility usable for city business again. Relocating city hall would be a significant undertaking, and it would likely be contingent on the sale of the existing city hall. Setterberg said the city would need to then purchase The Old Fire Hall since he would not be interested in having the city lease the space.
The council also agreed to submit an application to the state’s Local Road Improvement Program, or LRIP, to reconstruct Marina Drive, but not without some pushback from Anderson who has been expressing concern that the city is undertaking more projects than it has capacity to accomplish.
“Point taken,” said Setterberg. “We’ve been very busy with grants.”
Setterberg noted that the work likely wouldn’t be part of the city’s 2026 project schedule but would more likely be done in 2027. “We’ll be three or four projects deep by that time,” said Anderson.
The project is currently estimated at about $750,000. The council approved the motion to apply for the LRIP funding on a 4-1 vote with Anderson voting no.
In other business, the council:
• Authorized going out for new bids on the water and sewer extension for the harbor and Marjo RE developments, along with a separate request for bids for the soil mitigation work for the harbor development. A bid opening is expected before Jan. 21.
• Approved a new three-year police contract with Breitung Township, with an initial rate of $82,502 for next year, which is slightly less than the $85,967 budgeted for 2025. Under the agreement, the rate will only increase to cover the city’s share of pay increases for Police Chief Dan Reing. “Overall, it’s a pretty good mix,” said Setterberg.
• Approved a motion to advertise in-house for an interim ambulance supervisor position, with a wage of $11.50 per hour. The position would be earmarked for 25 hours a week, but additional hours would likely be allowed and the position would be benefits-eligible.
• Heard from Setterberg that the city has submitted its offer to new clerk-treasurer Tammy Mortaloni and received acceptance of the offer, with a start date of Monday, Dec. 15.
• Set a special meeting for Thursday, Dec. 18 to discuss the ambulance director position. Council member Joe Morin said the meeting will likely include a closed session to discuss a medical issue and a request under the Family and Medical Leave Act. Any decisions related to the issues will need to be made in public.
• Approved placing a notice in the Timberjay soliciting volunteers for the city’s new blight committee.