The city council approved the city’s preliminary levy for 2027 following a presentation from Two Harbors Finance Director Miranda Pietila, with adoption of the final version of the levy planned for December. The preliminary levy was set at 9%, the same increase as last year’s, which last December was eventually lowered to 4% by the time of final adoption. The preliminary levy is always higher than the final figure as a general rule, and this year is expected to be no different. The Truth in Taxation Hearing for the final levy, where the public can weigh in on the matter, is set to be on Monday, December 14th at 6:00 pm.
The City hosted a pop-up at the Farmer’s Market on September 26th to present information on the Highway 61 project and the new Park System Plan, courtesy of new City Planner Robin Caufman. She reported that attendance was good, with a “steady stream of people” for the duration of the market. According to Caufman, residents were appreciative that the City was communicative about upcoming plans, and all ages were eager to give feedback if given the opportunity. Caufman is currently making the rounds with a public survey to gather thoughts and ideas on the Park plan, with fliers posted at several sites and stores around Two Harbors. The survey is intended to continue for around another month.
City Engineer Andy Brotzler went over several items on the agenda in more detail. A payment to Lake County for the 2024-2025 Street & Utility Project was a reduction and retainage for the project, going from 5% to 1%. The project has been mostly complete for some time, with the remaining work being paving repairs on Waterfront at the intersection of 6th Avenue and turf restoration along 6th Avenue, as some sections planted this summer have not taken as well as desired. A public assessment hearing for the project is scheduled to take place during the October 26th City Council meeting.
The Lighthouse Point Road Street & Utility Project, which had a payment on the consent agenda, has had some delays due to rain and existing conditions but should undergo paving as early as mid-October. A newer project for Two Harbors was also on the agenda and approved: the Industrial Development Site Improvement & Utility Extension, which will extend utilities into certain undeveloped areas to allow for further development. Brotzler explained plans and specifications were ready to advertise for bid, with an anticipated bid opening as early as late October. Ideally, construction will begin this year before a hard freeze, allowing for interim completion dates to be set for early next summer.
The demolition of the Two Harbors band shell was on the consent agenda and approved, with Ostman Trucking doing the job for $16,500. Mayor Lew Conner brought up requests from several citizens to keep mementos from the band shell, in particular the stars on the back wall. City Administrator Patty Nordean had concerns about cost but noted the contractor tasked with handling demolition might be willing to work with people to sell parts once the band shell was in their possession. Dedication plates on the band shell have already been saved.
Committee reports started with Councilor Cathy Erickson on the Recreation Board, which is planning to post an opening for a new Recreation Board Director soon. Erickson also reported on the Finance Committee, which has had its hands full with the 2027 preliminary budget and levy. Mayor Lew Conner covered Public Affairs, currently in discussion on the future of a dog park in Two Harbors with Friends of the Dog Park and handling some committee changes for the Winter Frolic.
Councilor Donna Heil gave an update on Trees and Trails’ tree plantings, in particular several near the Water Treatment Plant that have been destroyed by salt and deer. Councilor Robin Glaser added that the City had previously given warnings to the contractor about the viability of putting vulnerable trees in that location; the miscommunication and resulting failure was therefore not a complete surprise. The group will be looking into the possibility of applying the warranty for the trees once able. According to Heil, Trees and Trails is planning to replace the dead trees with more appropriate deer-resistant and salt-tolerant shrubs for the area.
In addition, Trees and Trails is arranging the planting of an additional 30 trees with Duluth Dirt in order to fulfill the requirements for a grant to aid with funding for the new plants. The group is also currently in early talks with the local suicide-awareness community group Love Life about the possibility of a memorial garden.
Councilor Ben Redden attended to the Personnel Committee, which is currently going over probationary wages and 2027 medical premiums and contracts, as well as the City Administrator annual review and airport manager contract. As part of preparation for the contract, a survey has been sent out to airport tenants to gauge current satisfaction and issues for the airport’s users.
Finally, Councilor Todd Redmann covered the North Shore Management Board’s payment to Arrowhead Regional Development Commission (ARDC) for staffing services next quarter and an update on the Coastal Erosion Hazard mapping project, which is focused on figuring out possible problem areas that need closer study. The commission is working on specific land use goals and a work plan for 2027.
In other updates, the Cooperative Construction Agreement between the City and MnDOT for the Highway 61 Project is still in the works, with Nordean continuing to push for further improvements. On a separate topic, Councilor Redmann confirmed issues with the Horseshoe Pits are being handled by Public Works. Councilor Heil brought up a resident’s concern over geese in the cemetery, despite numerous attempts to ward them off according to Nordean.
Consent agenda items of note not already mentioned included: a lawful gambling exempt permit for Two Harbors Youth Hockey to conduct pull tabs; Great Lakes and St. Lawrence Cities Initiative Membership for 2027; and travel and registration for four employees to attend the Fall Maintenance Expo.
New business not already mentioned and approved by the Council was: a recommendation by the Public Affairs Committee to adopt the 2027 Campground Rate Schedule, which Pietila noted was based on surrounding area campgrounds; renewing the 2027 MN Paid Leave Administration employee family leave insurance with Madison National Life Insurance Company; a Probationary Review and Wage Step Increase Policy; a tax abatement for North Shore Flats, LLC Project and related agreement between the City of Two Harbors and North Shore Flats, LLC; and finally, out of duty compensation to Chief Hogenson and Assistant Chief Anderson for their work during the Stewart Trail Fire. According to Nordean, the City will be reimbursed by the state of Minnesota for the compensation. Redden added that extra compensation for extra work like this in an emergency situation is not irregular and has been done by the City before.
