The Duluth City Council will vote June 13 on the Fiscal Year 2017 annual operating and capital projects budget. The proposed budget represents a slight one percent increase and will be presented with a tentative millage rate of 5.991, the same rate since 2010.
Due to recent economic and redevelopment incentives, the city has some debt to address and would like to reverse a trend to use prior year reserves to balance the budget. With that in mind, the Duluth Citizens Budget Review Committee is recommending a slight millage rate increase to maintain existing services, address impending debt, protect excess use of prior year reserves and hire an additional code enforcement officer.
City Manager James Riker noted the city has been very strategic about initiating both commercial and residential redevelopment efforts, as well as generating private investments, that will eventually more than pay for the debt and support city efforts.
Should the council take the committee’s advice, an increase of 1 mill would represent $1.2 million for the city with the average household increase about $100.
Once the preliminary tax digest is received, the city will set the 2016 millage rate in July/August.
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