Duluth to weigh first tax hike since ‘84

A one-mill increase would equate to $60 a year on a $150,000 house and would provide a boost of $1 million to the city's coffers. Duluth's rate is 5.191 mills, compared with Suwanee's 5.77 mills and Norcross' 6.104 mills.

"Duluth's taxes are minuscule," resident John Bell argued. "I don't understand the problem. No one's going to notice."

One alternative -- dipping deeply into the city's reserve funds -- didn't sit well with committee members.

The group will meet again April 29 to decide on the exact tax hike and to weigh department cuts and fees for storm water and street lights. Its recommendations will go to the Duluth City Council in early May before city leaders adopt the budget in late June. Duluth's fiscal year runs from July 1 to June 30.

"[The council] approved all the recommendations from last year," said City Administrator Phil McLemore, adding there's a "very strong" chance the same will happen again this year.

But Councilman Billy Jones, who was a committee member in 2009, said Friday he believes there's more room to trim expenses.

"Before I would do a tax increase, I would make sure we cut every expense possible," Jones said. "It may be time to look at services that can be cut."

In the past two years, Duluth's seven departments, which includes police, have slashed their operating budget 20 percent, or by about $4 million, city documents show. One resident, Maxine Garner, suggested even more could be axed, including the city newsletter and special events such as concerts.

"Before we increase taxes, I think you should look at the fact we have luxuries we can do without," Garner said.

Formed last spring, the citizens budget committee, which like Engage Gwinnett, the county's citizen-led task force, is meant to give taxpayers a say on how their money is spent.

Last year, the Duluth group stemmed a $4-million revenue shortfall by tacking on a bevy of user fees, such as a charge for using court facilities and a $25 annual fee for a Dumpster card. Thursday, the group agreed to additional fees, including fines for false alarms and a credit card convenience fee.

"The person who consumes the service ought to pay for it," retired businessman Harry Andrews, who opposed the tax increase, said after the meeting. "The truth of the matter is I can pay the taxes. Some can't."

Andrews favored pulling more out from the city's reserves. However, city leaders noted that doing so would put the fund in jeopardy for fiscal 2012. The city's policy is to maintain a minimum of four months in reserves.

Committee member Judy Putnam, an unemployed writer, said she supports the increase.

"[Duluth's] a great place to live," she said. "We already hardly pay any taxes as it is."