Cloquet OKs early budget, levy

Cloquet city councilors approved the city’s preliminary budget and property tax levy for 2021 on Tuesday night, setting the maximum levy increase at 4 percent, for a total levy of $3,164,750.

The council can choose to levy for less than that amount in December, but they cannot increase the levy.

Property owners will probably not see an equivalent increase to their Cloquet property taxes, however, because the city has had a 5.12 percent increase in taxable market value, as new homes and commercial buildings have added to the tax rolls. So the impact on individual homes and businesses of the levy increase will be offset by the added taxes being paid by new properties.

The city’s proposed 2021 general fund expenditures come in at $7,875,700, with revenues of $7,838,200. The total 2021 budget projects approximately $17.94 million in revenues and financing sources and $19.47 million in expenditures and financing uses. The difference between the two will mostly come from $1.6 million in sales tax revenues.

As of this week, the budget forecasts a net loss of only $37,500, money that is being used for an update of the zoning and subdivision ordinance. The city will use reserve money to pay for that, Peterson said, because it is a one-time cost.

Ward 4 councilor Kerry Kolodge asked if city staff had accounted for all anticipated costs.

City administrator Tim Peterson said they have accounted for everything they could think of, after meeting with all department heads and looking at all increases and decreases.

“I feel comfortable that this should cover our needs for the next year,” Peterson said.

The city administrator said the biggest increases to the budget are a $43,000 increase to operations, for health insurance and contractual wage increases, and a $70,000 increase to the public works reserve levy. Much of the public works increase will go to pay for replacing playground equipment at Pinehurst Park.

“That’s a good project and it certainly needs to get done,” Peterson said, adding that the new playground is part of the city’s long-range plan.

Other changes include a one-year bump in the budget to pay for added training for police officers, who had many training sessions canceled due to the pandemic. A new part-time parks employee is also included in the 2021 budget.

A public hearing on the final budget and levy was set for 7 p.m. Dec. 1. The council can vote to decrease the levy at that hearing, but it cannot be increased.

In other matters Tuesday:

• Councilors approved CARES Act funding from the county for elections. The money won’t cover all the expenditures the city has made already, but city administrator Tim Peterson said they will free up city Covid funds for other uses.

• Councilors set a public hearing for the paving of Jolicouer Trails First Addition (south of White Pine Trail Road) for the Oct. 20 council meeting.