Rising police costs part of 6.23% levy increase in Cloquet

Two property owners addressed the Cloquet City Council on Tuesday about substantial property tax increases. Marty Hill said he was still suffering from sticker shock after seeing his taxes climb by 25 percent from this year to next, without any renovations to his property.

“You hear about how we have to tighten our belts. I hope the city is doing that too,” said Hill. “It would be nice to give us a little bit of relief.”

Scott Brander shared his estimated 2023 tax statement — and the 36.2 percent tax increase it contained — with city administrator Tim Peterson during the meeting.

“I put siding on my house, but I didn’t think it would cause this big an increase,” Brander said, noting that other people he talked to were seeing their taxes go up by closer to 7 percent.

Peterson explained that Brander’s large increase is the overall total of all local taxing units, including the city of Cloquet, Carlton County, Cloquet School District and the Cloquet Area Fire District. The city’s estimated portion of his increase was 6.5 percent, which will decrease slightly because the estimate was higher than the final budget.

Following the Truth in Taxation hearing, councilors unanimously passed a levy increase of 6.23 percent, or $201,890, for a total levy of $3,442,090.

The council also passed its budget for next year. In the general fund — which covers most of the day-to-day city expenses — revenues are expected to be $8,444,790 in 2023, with expenditures at $8,860,790.

In response to a question from Ward 4 councilor Kerry Kolodge, Peterson explained that the revenues only appear lower, because the city is using $116,000 it previously received from federal pandemic American Rescue Plan funds to make up the difference and also pay for a $300,000 broadband project, along with bonding dollars for water meter replacement.

Police expenses make up much of the increased general fund expenses for 2023, Peterson said.

With the police department at full strength for the first time in years, costs are up for maintaining, training and outfitting the current force. Additionally, the city is still paying increased costs after seven police officers retired on disability between 2019 and 2021 after the state changed its rules about job-induced post traumatic stress disorder.

In total, the 2023 police budget is projected to increase by $190,175, slightly less than predicted in September. The largest increase comes from workers’ compensation insurance costs of $87,000 — resulting from the disability retirements — a disability health insurance increase of $6,000, and an additional $78,725 for current wages. On a positive note, Peterson said in September he hoped the workers’ comp costs will decrease as cases drop off.

At $3.7 million a year, the police department budget consumes 42 percent of the city’s general fund budget of $8.45 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.

Other significant budgetary increases included electricity bills at the hockey shelters: the city budgeted an increase of $30,000 for 2023, and increased maintenance of $15,000 at the shelters.

Hopes for reduced insurance costs were undone by higher dental insurance rates, even though police insurance rates through the Teamsters Union decreased and other city health insurance came in close to the preliminary budget estimate.

Council OKs less-than-lethal police options

The Cloquet police department got the go-ahead to purchase two 40-millimeter “less lethal” launchers at close to $1,200 each plus the cost of protective cases. Police chief Derek Randall said the launchers are “simple tools” that can use many different kinds of ammo, but he expects to primarily use foam or rubber. They can also be used with “marking” rounds that would paint or stain a subject, as well as pepper spray or tear gas. The only other less-lethal devices the department already owns are its stun guns, some of which are close to 20 years old, Randall said, adding that the department has several officers who are already trained to use the launchers.

“The goal is to reduce the number of deadly force situations,” Randall said, adding that sometimes just the knowledge that police will use their less-lethal (but still painful and sometimes dangerous devices) will convince a person to comply.

“Sometimes just activating the arc is enough,” he said of the stun guns.

The council voted 6-1 in favor of the launchers with Ward 5 councilor Lyz Jaakola voting no. Jaakola pointed out that the Minneapolis police are facing lawsuits after using launchers on peaceful protestors. Randall said the Cloquet department policies would not allow officers to fire the less-lethal rounds at peaceful protestors.

“I’m happy to say when we had peaceful protests here, we were right there with them,” he said, referring to a protest held in Cloquet after the killing of George Floyd in 2020.