City proposes keeping same millage rate

Duluth recently held their first public hearing to set the 2020 millage rate. The city is considering maintaining the same millage rate as last year of 6.551 mills. The calculation represents .194 mills increase, which amounts to 3.05% and represents $323,000 in revenue.

Duluth, like all local municipalities, is attempting to determine the impact of the pandemic on city funding. Because of property reassessments, the city anticipates an increase of existing real property (less projected appeal loss) of $49 million, or 3.19% in assessed value. Other sources of revenue are expected to take a hit.

The city’s Fiscal Year 2021 budget estimates $20.5 million in revenues and $22.1 million in expenditures, which will require $1.4 million in reserve funding to balance.

Duluth Council member Marsha Bomar noted the rollback rate would save such a small amount per household (averaging $15-22) but decrease the city’s ability maintain service levels.

Because the proposed millage rate is higher than the calculated “rollback rate,” it is technically considered an increase, and three public hearings are required to allow for public input.

The second public hearing is scheduled for 10 a.m. Monday in Council Chambers of City Hall, 3167 Main St. The final public hearing will be held at 6 p.m. Aug. 10 in the same location. The City Council will vote to adopt the millage rate Aug.10.