Council votes yes to sidewalks, considers levy hike

Cloquet city councilors and Mayor Roger Maki voted unanimously Tuesday to uphold the city’s subdivision ordinance requiring sidewalks in any new subdivisions, despite a planning commission recommendation to the contrary.

City planner/zoning administrator Al Cottingham told councilors that the three members of the planning commission recommended approval of a variance from the subdivision code for developer James Kuklis for phase 2 of his Trails Edge subdivision, to be located southwest of Trail Drive and 18th Street. The proposed plat shows 13 two-family townhomes, in a development that targets residents over the age of 55. Phase one was constructed 14-15 years ago and did not include a sidewalk.

In recommending the variance, the planning commission members said they felt the council had set a precedent by not requiring sidewalks for reconstruction projects on Eighth Street and Prospect Avenue.

Cottingham disagreed, pointing out other recent projects along Washington Avenue and 14th Street which added sidewalks/walking trails on one or both sides of the street. He noted there were special circumstances on Prospect because it was built 50 years ago with many homes much closer to the road already.

In his final council meeting before moving out of Ward 3, councilor Chris Swanson started the discussion by saying he disagreed the council had set a precedent with its rulings on Prospect. Councilor Sheila Lamb suggested that seniors and other residents need to be able to walk safely on sidewalks.

Kuklis argued his residents needed wider streets more than sidewalks, and also suggested that by requiring sidewalks, the two phases of the Trails Edge development wouldn’t match.

“The bigger issue is we need to stay true to our codes,” Kolodge said.

City administrator Tim Peterson told the council if it approved the variance, it should revisit the subdivision code requiring sidewalks.

“This is your opportunity to set a vision for the community,” he told the council. “What do we want the community to look like for the next 50 years?”

After extensive discussion, councilors voted unanimously against issuing the variance, although they did approve the plat for the new addition.

Budget, levy increases

Council members got a first look at next year’s budget Tuesday, including cost increases that will lead to a nearly 6 percent increase in the property tax levy, projected at $3.43 million for 2023.

City administrator Peterson said initial budget projections had the levy going up by 10 percent, then 8.3 percent, but reductions in consultant costs helped lower the projected levy increase to 5.97 percent, or $193,425 above the 2022 levy.

The largest increases to the budget come from the police department budget, which is projected to increase by $200,625, due to increases of $78,725 in wages, workers compensation insurance costs of $87,000, and a $13,200 health insurance increase for a total budget of $3.718 million.

Fully staffed for the first time in years, the department’s actual costs grew from $3.2 million in 2020 to $3.4 million in 2021, with a $3.5 million budget for 2022.

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.

Peterson said a “dramatic” jump in workers compensation insurance costs over the past several years is to blame for much of the increase. A graph in the staff report shows the yearly cost rising from $170,000 in 2019 to $410,281 in 2021 and $438,564 in 2022. The city has used American Rescue Plan Act funds from the federal government to offset those increases, but those funds are finite, he said.

“Now we’re trying to catch back up with the actual workers comp costs,” he said, noting that staff are trying to avoid a large jump in the tax burden at one time.

As reported last year, the workers compensation increases came after Cloquet saw seven police officers retire on disability between 2019 and 2021 — nearly a third of the department at the time — after the state changed its rules about job-induced post traumatic stress disorder. The city is budgeting $116,00 in 2023 to cover insurance payments for the seven retirees.

“Is there any help coming from the state,” asked Ward 4 councilor Kerry Kolodge, referring to the fact that disability claims are an issue across the state.

Maybe $15,000, the city administrator said.

On a positive note, Peterson said he hoped the workers compensation costs will decrease as workers compensation cases over the past few years drop off.

Next year’s city budget also includes an additional $65,000 more in library funding, which will not be enough to cover the $100,000 a year the library is losing at the moment, but it will keep the library fund from going into the negative, Peterson said.

The council did not vote on the budget or tax levy Tuesday; it will likely set a minimum levy increase at the first meeting in September. Peterson said he didn’t expect the budget figures to change between now and then.

More

In other matters Tuesday, councilors approved:

The appointment of Michelle Wick to the Cloquet Planning Commission, which still has at least one vacancy to be filled.

A preliminary plan for a new Caribou Coffee to be constructed between the Pizza Hut and McDonald’s restaurants in the Pinetree Plaza (SuperOne) area.

A beer and wine license for Ride or Die Pizzeria, located in the former Southgate Pizza building at 918 Minnesota Highway 33 S., between Cold One Liquor and Anytime Fitness.

The sale of $2.53 million in bonds to finance water and sewer improvements for the 14th Street reconstruction project and replacement of water meters. The 14th Street costs will be repaid from the local option sales tax and the city was already budgeting for the cost of replacing the meters.

Also Tuesday, Cara Keinanen presented on the Positive Community Norms grant.

“Change perceptions and you will change people’s behaviors,” Keinanen said, explaining that the five-year grant focuses on growing the positives within a community.

The coalition working on the grant just finished its first year of information gathering, so residents should expect to see messaging and in-school efforts in Cloquet and Carlton soon.

Look for a story on this in a future issue of the Pine Knot, or call Keinanen at 218-590-6761 to find out more.