Duluth City Council approves 3.1% property tax increase

DULUTH — More money for firefighter pay and library materials will slightly boost the amount residents will pay in property taxes toward the city.

The Duluth City Council approved both the city's budget and a property tax increase Monday night, settling on a 3.12% increase to the levy — higher than Mayor Emily Larson's 2% proposal that would not have raised taxes because of growth in the city's tax base. Last year, property taxes going to the city increased by nearly 9%.

The new increase will cost the owner of a $213,000 home about $8 more a year. It brings the city's portion of residents' property taxes to $42.6 million.

Larson's August budget proposal took advantage of of a hefty increase to local government aid to invest in streets, parks and public safety services, areas that have suffered under stagnant state aid to cities, she said then.

Next year's $4.4 million increase — thanks to the state's $17.5 billion surplus — is the largest the city has received in at least 20 years.

"We're in a much different situation than we were this time last year," Councilor Mike Mayou said Monday night. "We can't take it for granted for sure, but this is something that definitely helped us out."

The budget includes new investments for housing inspector and grant manager positions, fire department spending and increases to the snow removal budget.

There is also one-time spending from reserves for replacement of equipment such as snowplows and police vehicles; $1.8 million in bonuses split between the more than 800 city employees and $4 million from reserves for street repairs.

The council wanted to boost firefighter pay — among the lowest in the state — and the library budget, which has been frozen for years.