Politics & Government

Duluth Keeps Same Tax Millage Rate, Adopts Budget

City Council adopts $31.46 million budget for fiscal year 2012, which runs July 1 through June 30.

The Duluth City Council adopted a 2011 tax millage rate of 5.991 mills, the same as last year, to support the city’s FY2012 budget of $31,463,416. Both the millage rate and budget were unanimously adopted at a called city council meeting Monday (June 27). The new budget goes into effect July 1.

The FY2012 budget, which is about $11 million less than the officially adopted FY2011 budget, required the city to use $2.875 million in reserve funds to balance revenue and expenditures. Balancing the budget was again challenging because the city faced a decline in revenue for the third year in a row.

Mayor Nancy Harris noted that property tax revenue was down about 9.13 percent from last year. “The council was very aware of the depressed economy,” Harris said. “City staff and the council worked very hard not to increase the tax burden on our citizens.” The 5.991 mills was unchanged from the prior year’s rate, she said.

Find out what's happening in Duluthwith free, real-time updates from Patch.

Public hearings on the budget were conducted by the council May 23 and June 13. The budget was drafted by city staff and the city council with input from a Citizens Budget Committee. This was the third year a committee was formed to advise the city on the budget.

Although the budget was prepared before the city received the county tax digest, no adjustments were necessary, City Administrator Phil McLemore said, because City Clerk Teresa Lynn had estimated property tax revenue so close to the amount on the digest.

Find out what's happening in Duluthwith free, real-time updates from Patch.

A 5.191 millage rate had been in effect in Duluth since 2001 before being increased by .8 mills last year to help balance the budget along with reserve funds. To see a history of the city’s tax rates click here


Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.

We’ve removed the ability to reply as we work to make improvements. Learn more here