Duluth's City Council meeting on September 8, 2025, highlighted significant developments in the city's transit system and budget planning, aiming to enhance public transportation services while addressing financial challenges.

The Duluth Transit Authority (DTA) reported a remarkable 41% increase in ridership since 2021, with the blue line alone serving over 2,000 passengers daily. This growth is attributed to strategic partnerships with local employers and educational institutions, which are expected to further boost ridership as in-person classes resume. The DTA is also exploring the potential of the Northern Lights Express, a proposed train service, to improve connectivity for travelers arriving in Duluth.

In terms of financial planning, the DTA presented a budget of $27 million for 2026, reflecting a 5% increase from the previous year. This budget includes a 6% decrease in the operating budget for Scribe services, achieved through improved efficiencies rather than service cuts. Notably, 75% of the budget is allocated to salaries and benefits for approximately 200 employees. The DTA anticipates a 3% increase in operating revenues and an 8% rise in funding from the Minnesota Department of Transportation (MnDOT).

However, the DTA faces challenges, including rising costs due to inflation and new payroll mandates. The council discussed the importance of maintaining essential services, such as the warming center and the Port Town Trolley, which has been a popular summer transportation option for tourists. The trolley's funding has shifted from tourism tax to property tax, raising concerns about its sustainability.

To address these financial pressures, the DTA is requesting an increase in the property tax levy from approximately $2.3 million to over $3.3 million for 2026. This increase would result in an estimated annual cost of about $67 for homeowners with properties valued at $275,000. The council emphasized the need to avoid a "transit death spiral," where budget cuts lead to reduced services and further declines in ridership.

As the meeting concluded, council members expressed gratitude for the DTA's efforts and acknowledged the importance of continued investment in public transportation to support the community's needs. The council will further deliberate on the proposed levy increase in upcoming sessions, ensuring that Duluth's transit system remains robust and responsive to the public's demands.