Council debates Duluth Transit Authority funding, declines immediate cuts and approves DTA levy request after follow-up talks

Councilors pressed Duluth Transit Authority leadership for details about a proposed large increase in the DTA's 2026 levy during a lengthy discussion that followed public testimony urging maintenance of transit service. A proposed council amendment to sharply reduce the DTA levy was introduced, debated and then withdrawn after DTA management and several councilors agreed to continue working on budget alignment before the December final vote. The council later approved the DTA's levy resolution on a 9-0 vote.

Councilor Randolph introduced an amendment that would have reduced the DTA's requested increase to roughly half the proposed amount (the motion language described a reduction to about a 21.5% levy increase compared with the DTA's requested figure). Randolph said the change was intended to keep buses running while asking the DTA to find operating savings; he cited staffing and capital-schedule adjustments as possible areas to trim costs. Councilor Forsman, who co-authored follow-up work with Randolph, emphasized concerns about the long-term trajectory of the DTA levy and the city's ability to sustain rapidly rising transit costs.

DTA General Manager Chris Belden answered councilors' questions about reserves, capital funding and potential service cuts. Belden told the council that the warming-shelter shuttle is about $50,000 annually and the Canal Park trolley costs about $250,000 a year; he warned that those items were near the top of a list of operating items that could be cut if the DTA faced large reductions. Belden also said certain federal and state grant rules prevent the agency from shifting capital-match or federally restricted performance funds into operating budgets, and that the DTA has about $17 million programmed in the Transportation Improvement Plan for capital projects in future years.

Multiple residents and service providers urged the council not to cut DTA funding. Several speakers said the system is a lifeline for people traveling to medical appointments, work, the warming center and other essential services. Oncology nurse Carolyn Olsen said patients rely on the bus to get to life-saving cancer treatments, and public commenters repeated that transit access to shelters and libraries is critical to public health and safety.

After extensive questioning, the councilors who had sponsored the amendment withdrew it and asked the DTA to return with more detailed plans and fiscal scenarios before the December budget vote. Councilors said they wanted to see the DTA's plan to grow ridership and reduce levy dependence as part of the follow-up work. The final resolution to levy the DTA's 2026 funding passed on a unanimous roll call.

DTA staff committed to provide additional financial details to the council, including scenarios for reserves, capital-match availability and the agency's ridership-growth strategy. Councilors set continued negotiation and information exchange as the path forward before the council adopts a final 2026 levy in December.