Duluth council sets maximum 2026 property tax levy after 1% amendment

The Duluth City Council voted to set a higher maximum property tax levy for 2026 after adopting a 1 percentage-point amendment to the mayor's proposed levy cap and then passing the resolution as amended. Councilors voted 5-4 to add 1 percentage point to the administration's proposed maximum, and later approved the amended resolution by a 9-0 roll call.

The amendment moved by Councilor Howell and seconded by Councilor Dirwachter increased the maximum levy cap above the mayor's proposed 4.13% figure; the council approved a motion to set the maximum levy at 5.13% for 2026 before adopting the full resolution a short time later. City attorney numbers read into the record after the amendment put the revised maximum levy at $45,624,919 for general operations, with $28,106,119 levied for the general fund and a taxable levy increase figure of $2,226,347.

Members said the extra percentage was intended to give the council flexibility while the detailed 2026 budget remained incomplete. Councilor Howell, who offered the amendment, said it would give "a little bit more of that buffer" while finance and department allocations are reviewed at the council's October retreat. Councilors who opposed the amendment argued the city should avoid locking in higher levies before the full budget is available and voiced concern about the impact on seniors and households on fixed incomes.

Public comments before the vote focused heavily on city services that could be affected by budget decisions. Several residents urged the council to preserve funding for the Duluth Transit Authority (DTA) and the public library. Social worker and District 4 resident Eleanor Dolan told the council, "The bus to the warming shelter, that literally saves lives," while Erin Krieger of the Duluth Library Foundation said staffing losses "could mean a reduction in hours and services."

Councilors and the mayor emphasized the broader budget context: interim finance staff and the administration said the city faces multi-year structural pressures, and the mayor stressed a goal of presenting a final budget aligned with an inflation-only 2.7% target while acknowledging longer-term gaps in 2027 and beyond. Councilors requested more detail from finance staff and scheduled an October 31 budget retreat to examine department-level proposals before final decisions in December.

The council's votes: the 1 percentage-point amendment passed 5-4; the amended resolution setting the maximum levy was adopted 9-0.

The council will return in October to review the detailed budget and consider whether to adopt a lower final levy in December. For now the council has legally capped the maximum levy for 2026 at the amended level while retaining the ability to set a lower final levy later.