Proposed tax hike draws mixed reaction in Duluth

But Alana Moss supported the tax hike, saying residents in the Gwinnett County municipality of 26,000 are getting a bargain.

"Not having taxes raised in 25 years is pretty unbelievable," she said.

The public hearing came more than three weeks after a citizens budget committee, a group of about 25 residents, recommended a tax hike of up to 1.5 mills to help balance the city's $17.9 million operating budget. It also suggested pulling about $500,000 from reserves and tacking on a bevy of user fees, from fines for false alarms to credit card convenience fees.

City Administrator Phil McLemore said Monday night that the staff recommends a tax increase of three-fourths of a mill. That would equate to an extra $45 a year on a $150,000 home. Duluth's current rate is 5.191 mills, compared with Suwanee's 5.77 mills and Norcross' 6.104 mills.

Longtime homeowner Dick Valduga admonished the city for owning so much property and for investing in parks and recreation, what he called a "bottomless pit."

"We need to look at things a lot harder," Valduga said. "You're stewards of my money. Take good care of it."

Duluth isn't the only Gwinnett city exploring a tax hike. Snellville, which is facing a $1.2 million budget deficit, is also weighing a tax increase or slashing 20 percent of its work force.

Mayor Nancy Harris said the city isn't to the point of considering job cuts, saying the staff is already lean as compared with other municipalities.

In the past two years, Duluth's seven departments, including the Police Department, have combined to slash the city's operating budget by 20 percent, or about $4 million, city documents show.

The Duluth City Council is expected to adopt the budget June 14.