The Two Harbors City Council held a public Truth and Taxation hearing last Monday night. Finance Director Miranda Pietila presented the levy proposal for the coming year. The primary levy was set at 9% back in September. As is typical of the work of the Finance Committee, the goal was to maintain city services at the level that they have been at while providing a balanced budget for 2026. After considering the budget requests of the various city departments, the committee lowered the levy to 4%. The long and short of it for property owners is that folks who have a home that is valued at $200,000 will see a tax bill of around $81.65 per month or $980 for the year. This represents a decrease in their property tax bill of around $42 for the year. This decrease does not impact their overall property value if improvements have not been made in 2025 – 26. Folks who have a home that is valued at $400,000 will also see a decrease in their tax bill of around $96 over the course of the year. As we all know, these are difficult times economically. The city has incurred an increase in expenses for, among other things, employee health insurance. With the uncertainty caused by economic policies coming out of Washington, DC, these are challenging times for everyone, and in spite of that, the city is in good shape financially. Truth in Taxation documents are available for public inspection at City Hall.
Total budget expenditures for 2026 are expected to total $38,365,573. There are significant street improvement projects slated to commence in the coming year, and there is an expected deficit of $1.3 million, which will be addressed by planned bonding in 2026. Detailed budget documents are also available for public inspection at City Hall. The council voted to adopt both the tax levy and the budget.
In other news, the library board is sponsoring another book sale, which will be held on January 27th at the library from noon to 5:00 PM.
The council approved a 2026 Cannabis Microbusiness License for Two Harbors Cannabis, LLC, and voted to approve a Lower Potency Hemp Edible Retailer License for Castle Danger Brewery, contingent on receiving a copy of their state license.
City Administrator Patty Nordean was recognized at Monday night’s meeting for her 35 years of dedicated service to the city of Two Harbors. Patty has played an integral role in shepherding the city through numerous critical infrastructure projects, including the Hwy 61 project, street improvement projects, the new terminal building at the airport, and many others. Her efforts to bring improvements to the city are appreciated.
The next Two Harbors Council meeting will be held on January 12th at 5:30 PM
