It was a short but productive set of meetings focusing on money, both in terms of budget for the city of Two Harbors and financing for several projects currently in the works.
During the agenda meeting, City Engineer Brotzler spoke, recommending the bid from Utility Systems of America, Inc. for the 4th Street and the 15th Street and Alley Watermain Replacement Projects. He explained the higher budget for the 4th Street Watermain Project due to not only the larger scope but also the need to maintain water service for the hospital throughout construction. The Council voted to approve these recommendations. The City has worked with Utility Systems of America before, and they were the low bidder for these projects. Brotzler also gave an update on the status of one of the remaining parts of the 2024-25 street project: the 400 block of 6th Ave will be under construction for a temporary water main starting May 4th. The project’s completion date is scheduled for June 30th.
The action meeting began with an appearance from Senior Municipal Advisor Todd Hagen of Ehler’s, Inc., who reviewed a presale report for the sale of bonds. These bonds will be used to help provide funding for the Lighthouse Point Road, 15th Street and alley, and 4th Street Watermain Projects. He noted that the City had already done a good job collecting grants to fund other parts of the projects, leaving the bonds to just cover the remaining water and sanitary sewer portions for a total of approximately $3.5 million. The Council voted to approve the bond package without further discussion. The bonds will be standard general obligation bonds guaranteed by the state of Minnesota and are planned to be ready for sale on May 26th.
Bergan KDV auditor Andy Grice presented the 2025 Audited Financial Statement for the City of Two Harbors. He began by noting the City had a clean financial report with no major issues, though there were two minor issues: ratio of gallons billed to gallons pumped and the lack of separation of accounting duties, commonly in smaller cities due to the smaller office size. Two highlights of the statement were the general fund balance of Two Harbors in 2025 being enough for 11 months of expenditures, which, according to Grice, is considered “a great financial position”, and the City’s campground bringing in a good surplus of funds. Following the presentation, Councilor Redden thanked Finance Director Miranda Pietila for “keeping the City in excellent financial health throughout the year.”
Administrator Nordean’s report included attending the Minnesota Council of Airports Conference with Finance Director Pietila, where Two Harbors was presented with the 2025 Project of the Year award for Intermediate Large General Aviation Airport for the City’s terminal construction project at Two Harbors Airport’s Helgesen Field.
Committee Reports were fairly brief. The Utility Committee discussed water rates and the possibility of extending utilities to a County-owned parcel for a potential manufacturing development, Public Affairs considered the marketing proposal for the Highway 61 Project and potential industrial development opportunities; the North Shore Management Board is continuing to work with MnDOT’s North Shore Roadway Network Resilience Study, concerning how the area is potentially affected during road closures on Highway 61, whether due to emergencies or construction; finally, Public Arts and Beautification is continuing to consider the potential projects of art on an electrical box and the bandshell painting and winter cover mural.
Approved consent agenda items of note included: The appointment of Mark Rauenhorst as Public Works Director and Eddy Parke as PartTime Liquor Clerk starting May 4th; a replacement copier for the Two Harbors Police Department; purchase of a mini split AC unit for the city campground office building from A.G. O’Brien Plumbing & Heating Co.; special event permits for the Jodie Schmahl-Olson Memorial 5K Run/Walk on May 30th and two Castle Danger Brewery events, a 15th Anniversary Party on August 15th and the Heck of the North Bike Race on September 26; a public market permit for Gourmet Shaved Ice; a solicitor’s license for Northern Lights Sourdough; the purchase of crushed gravel from Hoover Construction; authorizing the MNDNR to conduct a rare plant study on City property as part of preparations for the next section of the Gitchi-Gami State Trail; a memorandum of understanding from the IBEW (International Brotherhood of Electrical Workers) Local 31 for summer hours from May through September; an amended contract with Rick’s Tree & Stump Removal for removing four additional ash trees infested by emerald ash borers; the application for the Arts Experiences Grant from Minnesota State Arts Board, meant to provide funding for public arts projects; and authorizing letters of support to members of the Minnesota legislature “respectfully urging the passage” of senate file 2766 – 2026 Minerals Article, authored by Senator Hauschild, which involves monetary distributions from Mesabi Metallics towards settlements and school districts within Northeastern Minnesota.
Other items of business approved by the Council were accepting Bolton and Menk’s engineering services for the 15th Street and Alley as well as 4th Street Watermain Replacement Projects; entering the City into a credit enhancement program with the Minnesota PFA (Public Facilities Authority), as the City’s current credit rating is AAand increasing that to AAA would allow for lower interest rates; and two related items taken off the consent agenda and added to new business to avoid potential conflicts of interest for one of the Council members, involving Harbor Kayak & Paddleboat Rental relocating vendor space to be further from portable toilets in Burlington Beach and getting public market application.
