CAFD tax levy rates shoot up for ambulance

A $312,927 jump in the Cloquet Area Fire District's proposed budget from its preliminary one two months ago - and a corresponding levy increase of 7 percent, compared to the 2.75 percent sent to the district's member communities in July - passed in a divided vote at the Sept. 18 board meeting.

Gary Harms, representing Perch Lake Township, said raising rates after the fact is a problem. "Reality is reality, I guess," he said. "I got to go back and report to my town board and say, 'oops, made a mistake here' and I don't like that."

Dave Sunnarborg, representing Thomson Township, echoed that sentiment.

A $200,000 home in an ambulance-only area would potentially pay $27 more per year in CAFD taxes compared to last year. That represents a $6 bump from the first preliminary budget approved by the board in July. The fire levy will likely remain unchanged from 2024, resulting in the same $27 increase for property owners in the combined fire-ambulance levy.

When pressed by board members on what changed since the July meeting, fire chief Jesse Buhs said his administration "took a stab" at what the district's 2025 expenses would be, based on a six-month window when factors such as insurance rates were unknown. He said the district is trying to establish more reserves in anticipation of upcoming fire expenses.

He said the biggest source of expense, staff wages, are also higher, in an attempt to retain staff. Negotiations with the local union are ongoing.

Linda Way, representing Brevator Township, said the biggest potential savings is in staff, but it would be unreasonable to look at cutting those expenses.

Way joined Harms and Sunnarborg in voting against the proposed budget and levy out of concern for taxpayers, mentioning citizens with fixed incomes and young families with children.

What's next

Buhs highlighted ways he has tried to cut costs, from "shedding multiple large equipment" to training CAFD staff to inspect its facility boilers rather than paying the City of Cloquet for that function, as reflected in the now-updated contract for city services.

Other savings, Buhs said, have been incremental, such as moving to one printer and reducing overtime. He said his ability to cut costs seems to be getting limited and told the Pine Knot that cutting would mean cutting services. Consequently, he underlined his priorities of lobbying for state and federal funding.

Now that the proposed levy has passed, it will be sent to the county. While other taxing authorities, such as cities, can decrease the levy from what they submit to the county, the district is unique because it can increase its proposal between now and when the board passes a final budget and levy in December.

"We feel the work that we've done has given us a pretty good indication of where we need to be for next year [so] I don't foresee that change," Buhs said.

New facility focus

Over the past few months there have been movements, though no official decision, on a new facility for Station 1. The board formed a facilities committee, confirmed the location, and at last Wednesday's meeting voted to conduct wetlands assessment and to make sure initial costs don't deplete cash reserves.

At its August meeting, the CAFD board opted to plan potential construction on land on the east side of 22nd Street between Cloquet and Carlton Avenue donated by Jarden (at the time Jarden Home Brands, which has since left the area), off Carlton County Highway 45 near the old Diamond Match factory. Buhs said at the board retreat in July that he didn't expect to make much by selling that land to build on another site, and though the district's response time could be about two minutes slower to communities such as Brevator and parts of Fond du Lac, it could be quicker for communities such as Thomson Township - the second-most densely populated in the district.

Assistant chief Corey Larson said a facility with more room to turn out vehicles and equipment could mitigate any change in response time.

Way said the increase in response time is under optimal conditions. The change in response times is what prompted Way to join Harms and FDL representative Bruce Blacketter in voting against the selection of the Scanlon Way location.

Architectural firms LHB and 5 Bugles Designs will present designs for a potential new facility at the district's Oct. 16 meeting. They will work off a plan drawn up for the district before the potential project stalled six years ago.