Cloquet budget is ‘in the black’When it comes to money management, the city of Cloquet makes the grade once again this year.
By: Janelle Verke, Pine Journal
When it comes to money management, the city of Cloquet makes the grade once again this year.
Deborah Medlin of Eikill & Schilling Ltd., a local accounting firm, presented the council with the city’s annual audit. The final 2011 budget showed that the city was well in the black, having a final balance of $1.6 million after budgeting for $3.8 million in revenues and actually taking in $4.2 million.
The one place the city did show a negative balance in a large fund was in the variances, which showed a negative balance of $150,755, due in large part to a land purchase on Airport Road.
The overall budget showed a positive balance of $81,489.
On the utilities side of the budget, the city did have a negative balance where user fees for water did not cover the costs. City administrator Brian Fritsinger explained to council members that those funds vary with usage on the residential side. Sappi is the largest user of city water, with 67 percent of the overall usage. The money paid by Sappi is set up to be cost-recovery for the city and not revenue.
The city also saw a loss in the stormwater category; however, user fees are new and were not recovered for the first quarter of 2011. The expectation is that after 2012 that fund will balance out.
“I’d like to thank Nancy [Klassen, finance director] and Brian for very stellar budgeting practice for the city of Cloquet,” Mayor Bruce Ahlgren said during the regular meeting of the council on Tuesday evening.
The council approved the audit.
In other council news, motions were approved for: an optional 2 a.m. liquor license renewal by CJ’s Partnership (Cheers Sports Bar & Grill); a license to sell tobacco and tobacco products at Family Dollar Inc.; a liquor license and various business license renewals for 38 local businesses; and an on-sale wine license for County Seat Theater.