The Cloquet City Council approved the final adoption of the 2007 budget and levy Tuesday, both passing by a 5-2 vote. Councilors Neil Nemmers and Herb Johnson cast the two "no" votes because they felt a 5.44 percent was simply too high.
"The percentage (5.44) doesn't match the overall cost of living increases," said Nemmers.
Following the Dec. 5 Truth in Taxation hearing, the council decided it would not seek any specific changes in services or operations. According to a memo from City Administrator Brian Fritsinger, "The 2007 budget and levy reflects increased revenues, decreased spending and continued loss of Local Government Aid (LGA). The loss of LGA over the past five years continues to be a driving force behind proposed levy increases."
The final levy amount will total $3,246,000 - a 5.44 percent increase from last year.
The issue of Local Government Aid and how it affects small towns like Cloquet has been somewhat of a hot-button issue lately. In the past five years, Cloquet has seen its LGA decline by $1,295,249 since 2003. Last year, Cloquet received 2,241,784, which is nearly $170,000 less than the previous year.
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Tony Lourey was in Cloquet on Tuesday and will be taking the reins as District 8 State Senator in January. He feels Local Government Aid is essential for small communities like Cloquet to operate.
"I think the program of Local Government Aid makes a great deal of sense," said Lourey. "The state cooperatively and in its entirety needs to look at this. The cuts were very painful. Small towns need core services, and often times they don't have the tax base to cover the expenses - which is where LGA should come in. Cloquet is a regional center. Increasing LGA and helping Cloquet is something I'll be working on."
- In other city council news, long-time councilor Kelly Riihiluoma bid farewell to colleagues on the council on Tuesday night.
"It's been such a pleasure working with such a great council and city," Riihiluoma said.
"We thank you, and I think the citizens of Cloquet thank you for your loyal service, Kelly," responded Mayor Bruce Ahlgren.
Pine Journal Editor Mat Gilderman can be contacted at: mgilderman@pinejournal.com .
