International Falls City Council approved two spending issues Monday despite concerns voiced by Mayor-elect Bob Anderson prior to council action.

The council unanimously agreed to a contract with lobbying firm Lockridge Girndal Nauen of Minneapolis at $24,000 a year and to seek bids to remodel the city’s administration office.

Anderson, speaking during the audience portion at the beginning of the meeting, told the council that approving the items would mean saddling a new council seated in January with making the payments, which he said could cost in the tens of thousands or even hundreds of thousands of dollars.

“This is concerning to me as a citizen and mayor elect,” he said.

Anderson said the city’s future finances could be impacted by federal and state budget being played out in Congress now and when the Minnesota Legislature convenes in January. He said the recent indefinite idling of a paper machine and kraft mill in Fort Frances will likely have an effect on businesses in the Falls community.

“There are a number of uncertainties and the prudent action would be to defer action on the two items” to allow time for the council to study and consider further.

Attorney Steve Shermoen said later in the meeting that obtaining bids for the remodeling project could take until January, at which time Anderson and Pete Kalar, newly elected councilor-at-large, would be seated. The council at that time could reject the bids if it feels it is not in the best interests of the city, he said.

Councilor Gail Rognerud said the remodeling project has been planned for about two years. City Administrator Rod Otterness said the project has become more crucial as staff in the office have been reduced by 25 percent in the last couple years making it challenging to handle customers needs in existing space. Office space in the Municipal Building recently vacated by the North Koochiching Area Sanitary District will allow the business of the city to continue during the remodeling.

In addition, councilors said the lobbying contract would save the city money because Koochiching County, as well as the city, won’t likely renew a contract with another lobbying firm that has been helping to push improvements to U.S. Highway 53. The highway effort would be folded into the contract with Lockridge Girndal Nauen, which is expected to lead an effort to gain funding to construct a new port of entry.

The port project, said Councilor Cynthia Jaksa, would benefit the city by improving border crossing and the city’s profile as a strategic transportation site in North America.

In other business Monday, the council agreed to seek people to serve as honorary councilors. Jaksa said the move would encourage more participation in city government and could serve as a training ground for prospective council members.

The honorary members would serve in an advisory capacity and not cast votes, noted Shermoen.

The honorary members would be matched with different councilors to get a feel for each of the committees they lead and would share desk space during meetings with councilors.

Councilor Jerry Franzen, appointed in August to fill out a term ending this month as the at-large councilor, encouraged the council to move forward.

“This has certainly been an eye-opener for me,” he said of his time on the council. This would benefit “someone with any interest in how the city runs and the council operates.”

The council heard from Falls Police Chief Mike Musich and Otterness that an education campaign to improve safety at the Minnesota Dakota and Western Railway crossing within the port of entry.

Musich said he has met MD & W officials to discuss concerns about safety at the crossing and would share that information with the community.

In other business, the council approved the second reading of an ordinance that will increase in the next three years sewer and water rates.