A hometown newspaper with a local office, local owners & lots of local news

Council passes max 6.5-percent tax increase

Cloquet city councilors unanimously voted for a preliminary 2023 levy increase of 6.5 percent Tuesday, following advice of staff to build a little "wiggle room" into the budget.

Ward 2 councilor Sheila Lamb made the motion, stressing that the goal was to lower the levy increase to 5.95 percent by the time the city budget and levy are formally adopted in December.

City administrator Tim Peterson recommended the "wiggle room" and higher increase, noting that the council can choose to decrease the levy in December, but it can't go any higher than the preliminary levy set in September.

The increase would be higher were it not for federal American Rescue Plan Act funds being used to offset deficit spending to the tune of $116,000 in 2023 and $150,000 in 2024. The city is also spending $300,000 in rescue act funds on broadband for 2023.

Peterson explained that rescue funding rules have changed over time. Initially cities could spend the money on broadband, revenue recovery and water, sewer and road projects. However, the federal government now says entities that received less than $10 million can use the entire amount as revenue recovery, if needed.

"That freed us up so instead of tracking year by year, now we can use the money as we see fit," Peterson said.

The largest increases to the city budget come from the police department. Police costs make up 42 percent of the city's budget at $3.7 million, with public works at 23 percent, or just over $2 million. Parks and city administration both take up about 10 percent of the budget and other departments less than 10 percent.

The police budget is projected to increase by $200,625 in 2023. The largest increases come from workers' compensation insurance costs of $87,000 and an additional $78,725 for wages, now that the department is fully staffed again.

As reported in the Pine Knot News last year, the workers' compensation fees increased dramatically after Cloquet saw seven police officers retire on disability between 2019 and 2021 - nearly one-third of the department at the time - after the state changed its rules about job-induced post traumatic stress disorder. It's an issue for cities around the state, and not something the city has any power to change.

Other significant budgetary increases included electricity bills at the hockey shelters: the city budgeted an increase of $32,000 for 2023, with Peterson noting that electrical bills were higher than budgeted for last year, and that is expected to continue.

The total 2023 tax levy as passed would be $3.45 million.

Comp plan change

Councilors unanimously approved a comprehensive plan change and rezoning for a strip of land south of the Premiere Theatres strip mall, now covered by trees and shrubs.

Land owner Don Proulx requested the area be rezoned and the land use plan changed to "highway commercial," because the Wood City car dealership across the frontage road may want to display new cars there.

Proulx pointed out that the property was originally platted as a street and residential lots, so he could have put a road through there.

City zoning administrator Al Cottingham said the city vacated the west half of the street plat, but not the east side, which will leave trees between neighboring homes and the new lot. He pointed out that the property had been for sale for years and any of the neighbors who objected to the change could have purchased it during that time.

Proulx worked with the city to find a compromise.

"With this, 30 feet of trees will not be removed," Cottingham said.

Public comments

Three citizens stood up during the public comment portion of the meeting.

Peggy Anderson and Phyllis Markley were there to talk about the air conditioning at the Cloquet Senior Center, which is located between the two hockey arenas.

Anderson told the council it's been years since the window air conditioning unit cooled the meeting and dining room properly and asked them to replace it.

The city administrator, Peterson, said it was in the budget for 2023, and would be replaced before next summer.

"OK, then, that settles that then," a surprised Anderson said.

Greta Winter-Jarvinen updated the council on meetings with police chief Derek Randall and police response to issues in the Kelly Avenue neighborhood caused by two homes in particular, along with suspected drug abuse.

Winter-Jarvinen asked that police continue to patrol more often, because that seems to help. She also asked for a follow-up meeting with the police chief.

Peterson said Randall has been in touch with health and human services, children's services, the city attorney and residents of both homes so far. He assured Winter-Jarvinen that the city would arrange a follow-up meeting with neighbors.

 
 
Rendered 11/03/2024 00:35