How Hermantown is run

Who runs Hermantown, what it costs, and where your money goes

The city manager, council pay, the budget, your property tax bill and who provides each service, from Hermantown's own public documents. Every number links to its source and says which year it describes. Checked Oct 10, 2026.

Who runs Hermantown

A city manager hired by the council runs the city day to day. The council sets policy, adopts the budget and sets the tax rate.

City of Hermantown · May 28, 2026

What they are paid

City Administrator John Mulder: base payNot confirmed2026. City of Hermantown · Jan 1, 2026
A council member$8,100 a year2026. City code sets $675 a month, plus a $75 monthly phone and internet stipend and $50 or $100 per mediation session. City of Hermantown · Jan 1, 2026
The mayor$10,800 a year2026. City code sets $900 a month, plus a $75 monthly phone and internet stipend and $50 or $100 per mediation session. City of Hermantown · Jan 1, 2026
Council benefits
  • $75 a month phone and internet stipend
  • Reimbursement of expenses for official duties, with mileage at the IRS rate

Hermantown city staff

The audited report and adopted budget resolution do not state a staff count, and we found no employee pay list. Personnel costs were about 64% of the proposed 2026 general fund. We name pay only for elected officials and the city manager.

Is Hermantown in the red?

Cities must pass a balanced budget, so "profit" and "deficit" mean something different here. The useful questions: does the city's everyday money (the general fund) cover its everyday costs, how much does it keep in savings compared with its own target, and how big are its pension and debt bills.

General fund, FY2026$9.9MOut of $28M across all city funds, which includes utilities and other money that can only be spent on one thing. City of Hermantown · Dec 1, 2025
Savings grew, FY2025 (audited)+$360,404General fund revenue $10.3M, spending $9.3M. General fund revenue exceeded spending by $982,277 in 2025. After $646,023 in transfers out to other funds, fund balance rose $360,404. City of Hermantown · May 28, 2026

Savings

Unassigned general fund balance: $8.4M (2025-12-31). City of Hermantown · May 28, 2026

Pension promises not yet funded$2.4MThe city's share of net pension liability in the statewide PERA general employees plan ($803,851) and police and fire plan ($1,618,298), measured June 30, 2025. The volunteer firefighter relief plan showed a net pension asset of $37,112. (2025-06-30). City of Hermantown · May 28, 2026
Debt owed$50.5M2025-12-31. City of Hermantown · May 28, 2026

Why we skip the "budgeted deficit": many cities plan to dip into savings, then spend less than planned. The audited result tells you what really happened.

Where the money comes from and goes

The general fund only: the city's everyday money for FY2025.

Goes to (FY2025)

  • Public safety (police and fire)$5M · 50%
  • General government$1.4M · 14%
  • Capital outlay$1.3M · 13%
  • Streets and highways$899,053 · 9%
  • Transfers out to other funds$646,023 · 6%
  • Community and economic development$427,963 · 4%
  • Culture and recreation$250,416 · 3%
  • Other (debt principal)$2,021 · 0%

City of Hermantown · May 28, 2026

Who provides your services

Not everything in Hermantown is run by the city. Who provides a service decides whose budget pays for it and whose election decides it.

Compared with similar cities

The cities in this state closest in population that we cover. Read it for scale, not as a ranking: cities provide different services.

FairmontMNHermantownMNLittle CanadaMNCambridgeMN
Residents10,09910,11010,56711,090
Top administrator's base pay$151,778Not confirmed$169,333Not confirmed
Council member payNot confirmed$8,100$6,250Not confirmed
General fund per resident$1,446$976$572$869
Debt per resident$5,944$4,992$180$2,529
Unfunded pension per resident$367$240$61$244
City staff per 1,000 residents9.1—2.3—

Figures as shown in each city's section, divided by its population. Years differ by state, and pension figures are measured differently in each state (each city page says how). Little Canada pays another agency for police or fire, so its own staff count is lower.

What Hermantown publishes

What a resident can find online today. A "no" is something you can ask the council to publish.

Questions to ask your council

  1. The city owed $50,470,000 in general obligation bonds at the end of 2025. How will debt payments affect future levies?
  2. Public safety cost $5,005,502 in 2025, more than half of general fund spending. How will police and fire on-call costs grow in the 2027 budget?

The fiscal year starts January 1. On September 8, 2026 the council set a preliminary 2027 levy of $10,768,090 and scheduled the Truth in Taxation hearing for December 7, 2026 at 6:30 p.m. The budget and levy must be adopted by December 21. The 2026 budget and levy were adopted on December 1, 2025. See who is running for council

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Every number here was checked by hand against the linked document. Cities publish on different schedules, so years differ between sections; each figure says which year it describes. Spotted something wrong or out of date?

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