Duluth sets 2023 property tax levy increase

DULUTH — Duluth residents will see a 7.9% increase to the city's slice of their 2023 property tax levy.

City councilors voted unanimously Monday night on the measure, also approving the city's nearly $106 million general fund budget for next year.

The vote finalized changes councilors made earlier this month to the city administration's proposal, which was an 8.9% increase.

The amended approach reduced the tax hike by 1%, trimming about $383,000 across city departments.

The appetite residents have for tax increases in today's economy has changed, Council President Arik Forsman said at the Dec. 5 meeting.

"We need to grow our tax base," he said. "We're in for a tough budget year next year."

The city's finance director has said an increase in the property tax levy in 2024 could be as high as 17% because of growing health care expenses and wages.

City commitments to paying higher police wages and costs for a crisis response team last year were part of an expected 15% levy increase for 2023. Instead, about $3 million in American Rescue Plan money would offset that by paying for one-time purchases, putting the city's initial number at 8.9%.

St. Louis County's and the Duluth school district's shares of the property tax levy for Duluth residents includes a 4.39% county increase approved last week and a 2% increase that the Duluth school board is expected to vote on Tuesday night.