Cloquet city administrators and councilors fielded only a handful of questions about the proposed 2008 fiscal year budget at Tuesday's city council meeting.
The annual Truth-in-Taxation hearing was held to discuss next year's budget and specifically the tax levy to be adopted.
The budget proposes a property tax levy of $3,408,000 or an increase of 4.99 percent. Although the increase appears to be significant at $162,000, it is needed largely to pay for mandatory retirement increases, workers compensation insurance increases, wage adjustments of 3.25 percent, capital projects and utility and fuel cost increases, according to Brian Fritsinger, city administrator.
"Again this year, the city focused its discussions on the big picture resulting from the five-year reduction in Local Government Aid," Fritsinger said. Over the past five years, Cloquet has lost $1,290,000 in that aid.
However, the budget for 2008 includes a $5,000 increase in aid, which is good news, Fritsinger said.
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Overall, the 2008 proposed budget includes 20 different funds - from the general fund to the business park fund to the revolving capital project fund. The general fund holds the largest pot of money and includes most city services.
Total expenditures proposed for 2008 are $18,691,025, which include an increase of $3,757,205 from 2007. Revenues and transfers are projected at $17,507,955, which is a $3,492,212 increase from 2007. The increases are mostly due to the completion of capital projects, Fritsinger said.
Capital projects planned for 2008 include a Doddridge Avenue intersection, water meter replacements, sanitary sewer lining, landfill closure, Carlton Avenue reconstruction, and $2.5 million for the Pinehurst Park Pool if approved. The budget also includes money for the hiring of a community development director to handle local economic development.
Because of the small turnout at the hearing, a previously scheduled continuation meeting will be canceled, Fritsinger said.
The final budget and levy will be adopted on Dec. 18.
