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Duluth Transit Authority requests higher levy to avoid service cuts; council tables decision
Summary
DTA General Manager Chris Belden told Duluth City Council the authority needs a larger local levy to replace dwindling federal relief and meet rising local match requirements; the council tabled the DTA levy resolution to allow more time for review.
Chris Belden, general manager of the Duluth Transit Authority, told city council that DTA is requesting a larger 2026 property tax levy to shore up operations and meet local matching requirements for capital grants.
Belden and James Barg, DTA finance director, outlined DTA operations, ridership trends and a proposed 2026 budget. Belden said the DTA operates 15 routes, paratransit (Bridal) service for qualifying riders, and about 190 employees. He emphasized the agency’s history, ridership performance and federal performance funding it has recently won through the Federal Transit Administration (FTA).
DTA presented a proposed 2026 budget of about $27 million, a 5 percent increase over 2025, and described capital and operating pressures including vehicle replacements, detours, payroll mandates, inflation, and higher state/local match requirements for some state and federal grants. Belden said the DTA’s voter-approved levy limit exceeds $7.7 million but the agency was seeking a combined need (operations and capital local match) of about $3,318,438. He said DTA planned to use about $1.2 million of COVID-relief funds this year to smooth the levy impact and that the remaining COVID-relief balance was “somewhere in the ballpark of $1,500,000 or so,” subject to accounting and year-to-date expenditures.
Belden warned that failing to secure additional local funding could force the DTA to consider discontinuing the warming center free rides and shuttles, the Port Town trolley, raising fares or reducing weekend service — steps he said could risk a “transit death spiral” of declining ridership and revenue.
Councilors asked for details about COVID relief balances and federal performance funds. Councilor Randolph asked how much remained in COVID-relief funds; Belden said about $1.5 million remains and confirmed DTA planned to use $1.2 million this year. Councilor Andrew pressed DTA staff to show where recent federal performance funding appears in the budget; Belden said that additional performance funding appeared in non-operating revenues and required a local match.
When the council later considered the formal DTA levy resolution (Resolution 702), Councilor Forsman moved to table the levy to give council members more time to review budget materials alongside other levies. The motion to table passed 9 to 0.
Why it matters: The DTA levy request would increase the local share of transit funding and help meet required local matches for capital grants; changes in federal and state funding, pandemic relief drawdown and higher match percentages create near-term fiscal pressure on transit service in Duluth.
What’s next: Councilors tabled the DTA levy resolution to the next meeting for more review of budget details and funding sources. DTA representatives said they would provide follow-up information about COVID-relief balances, federal performance funds and capital match obligations.
