Prior to the Monday, November 17 meeting of the Clear Lake City Council, extra chairs were put out in anticipation of residents showing up to inquire about recent charges filed against former city employees.
In the period from Nov. 1, 2022 through Dec. 31, 2023, former City Clerk Kari Koren has been accused of getting paid for hours not worked and fraudulent purchases totaling $125,217.37. Former Public Works Director Dustin Luhning has been accused of the same with the total being $71,077.45. The filed complaint also accuses Fire Fighter Chad Koren with making personal charges totaling $4,987.17 on city credit cards.
Council Member Chad Nelson read a prepared statement, “The City is aware that former city employees Kari Koren, Chad Koren, and Dustin Luhning were charged with theft and embezzlement of public funds. The City Council became aware of potential financial issues in 2024 and retained a forensic auditor to review city records with the assistance of the mayor and a previous council member.”
Nelson continued.
“Throughout the entire process, city staff, the Fire Department, and the council cooperated with the auditors and attorneys to investigate. City officials and staff were under strict instructions to not discuss these issues until the investigation was completed and the information made public. Pursuant to the Minnesota Government Data Practices Act, the city cannot divulge private personnel data and therefore cannot divulge private personnel data and therefore cannot provide further comments at this time. Please refer to the criminal complaints for more information.”
No one in attendance spoke during open forum.
New Radios and Pagers
Fire Chief Ron Koren’s request for funds to purchase new radios and pagers for the Clear Lake Fire Department was approved. Koren submitted a bid for seven Motorola APX N30 Portable Radios totaling $19,929.49 and another for six Motorola pagers totaling $3,325.
Cost of Living Increase
A resolution was passed that increases the COL for city employees in 2026 by 3%. In the future, cost of living will match the same percentage as the COLA determined by the Social Security Administration.
Other News
The maximum amount for fees on cannabis businesses, as directed by the Minnesota Office of Cannabis Management, was adopted by the city and will be put into effect immediately.
Chris Goenner of St. Marcus Church, stood before the council requesting that the city allow the church to make improvements to an adjacent property that would move water that accumulates after heavy rains from their parking lot to a holding pond on the empty lot. After much discussion, the request was put on hold so that the city could further discuss possible future uses for the property.
