Cloquet proposed tax levy balloons

The city of Cloquet is looking at a property tax levy increase of at least 11.23 percent for 2025, or nearly $398,000 more than last year, city administrator Tim Peterson told councilors Tuesday.

Peterson said the 11-percent rise is a decrease from the original budget estimate, which would have required a 20-percent levy increase.

"The No. 1 difference is wages," he said.

Wages make up just over $6 million of the entire general fund budget of $9.5 million, Peterson said. The total wage increases for next year are $460,000 and the proposed levy increase is $397,000.

There was no vote Tuesday. City councilors must set a preliminary tax levy by the end of the month, likely at the meeting Sept. 17. Once the preliminary levy is set, councilors may decrease the amount before adopting the final budget in December, but they can't increase it.

The dramatically higher budget wasn't exactly a surprise after council members approved increased pay for the police department in June of roughly 11 percent for this year - including a pay raise of 6 percent plus a "market adjustment of $1.78 per hour, equivalent of 5 percent of the top patrol pay," Peterson explained in June.

"We value our police department and we want to keep them working in Cloquet," councilor Kerry Kolodge said at the time. "It's a tough market. Everybody's looking for officers these days."

Even with the raises, Cloquet still lost several officers to other local departments offering more generous salary packages, including the Carlton and St. Louis county sheriff's offices.

The total increase to the Cloquet Police Department budget for next year is $352,700, the lion's share of the increased taxes. The raises will bring the total department budget to $4.24 million.

Other city employee groups negotiated raises of 5-, 4- and 3 percent over three years (2024-26), which led to budget increases mostly between 3,- and 4 percent for next year. The library was the exception, with an expected budget increase of $66,000, or 8.36 percent. That's due to staff members moving up in the library's pay plan, Peterson said.

There are other areas where costs are rising. The swimming pool is budgeted for an increase of $27,400; the hockey arena an increase of $36,000. Parks will get $25,250 more.

"It really comes down to the level of service that we have right now," Peterson said. "If we want to continue to maintain that level ... in each department, this is what it costs to provide that service."