Truth in Taxation, the costs of building a new liquor store, the Capital Improvement Plan for 2024 – 2028, and a status update on the High School Project with the Two Harbors HRA were all part of a long and, at times, meandering Two Harbors City Council meeting on Monday night.
Finance Director Miranda Pietila presented a proposal that would allow for a property tax increase of 2% in 2024. This presentation was in conjunction with the Truth in Taxation public meeting. There were few in attendance to ask questions or take issue with the increase and the Council voted to approve the levy at 2%. Additionally, Pietila presented the Capital Improvement Plan (CIP) for 2024 – 2028.
The CIP is essentially a living document that helps the city plan and budget for needed improvement projects for Two Harbors. This type of plan is developed with city officials and public input and assists with strategic planning when it comes to seeking funding streams, and determining what projects to prioritize and when to implement them. It also helps the city avoid levy spikes. Components of the CIP include things like the ongoing Street Improvement Projects, the Water and Wastewater Improvement projects, the replacement of city-owned equipment like Fire Engines, and maintenance and repairs to city-owned properties. The Council unanimously approved the proposed CIP.
Erik Wedge, Principal Architect with DSGW Architecture, Duluth, was on hand to talk with the Council about the Municipal Liquor Store project. Six contractors have submitted bids for the project. The projected construction cost of the new store was around $5,400,000. The bids ranged from $6.4 million to $5.3 million. A protracted period of discussion ensued over the possibility of implementing cost-cutting measures by reducing the liquor store footprint from 16,000 to 9,000 square feet. Other possible cost-cutting measures could have included using less expensive siding and roofing materials. However, choosing to change design parameters in the hope of reducing costs would trigger additional architectural fees for the redesign. Inflation costs remain high in the construction industry and with the likelihood that rebids would come in higher than the current bids, the Council voted 4 to 3 to accept the bid for $5.3 million for the construction of the liquor store. The current municipal liquor store generates about $2.3 million a year in revenue for the city.
Last month, Mayor Lew Conner asked the Council to accept a request to authorize the transfer of $50,000 ($45,000 for the High School Project, $5,000 for insurance and attorney’s fees). The Council accepted this request with conditions to the City HRA. A resolution to rescind that decision was on Monday night’s agenda. The resolution to rescind was due to the fact that, this semester, there are low numbers of students enrolled in the Industrial Arts class that would be involved in the project. Some Council members wanted to rescind the previous resolution until next year when there will hopefully be more students to work on the project. Others wanted to simply delay the transfer of the funds. Council member Derrick Passe pointed out that not having access to the $5,000 for legal and insurance fees will tie the hands of the City HRA because they won’t have money to “get their ducks in a row”, which is one of the conditions that the Council has asked them to meet. In the end, the Council agreed to delay the payment of $40,000 until the High School Project is reaffirmed next Fall.
The Council recognized eight city employees for their years of service. Included are:
Randy Hedin; 5 years.
Miranda Pietila, Curt Cavallin and
Nicole Anderson; 10 years.
William Ruekert; 15 years.
Richard Hogenson; 25 years.
Steve Hedin and Gary Ganser; 30 years.
The downtown Two Harbors area is looking very festive with the installation of new holiday lights and decorations. Thanks to Lovin’ Lake County, area businesses, and a hard-working crew of folks for their efforts! The official lighting ceremony was held this past Wednesday. If you haven’t ventured downtown Two Harbors recently, come see for yourself. The place looks beautiful!
