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RESOLUTION PROPOSING THE SUM TO BE RAISED BY TAXATION FOR GENERAL PURPOSES FOR THE YEAR 2018.
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CITY PROPOSAL:
RESOLVED, that pursuant to Minnesota Statutes, Section 275.065, the city council adopts the following proposed tax levy:
Section 1. The sum to be raised by taxation for the year 2018 for general operations is hereby determined to be the sum of $28,216,292 which sum is levied against the taxable property of the city of Duluth and appropriated to the various accounts of the city, as set forth in the following sections, viz:
Section 2. There will be levied for the support of the general fund the sum of $16,106,100.
Section 3. There will be levied for the support of the street lighting fund the amount of $1,197,592
Section 4. For the payment of debt, there will be levied for the general obligation debt fund the sum of $6,832,600.
Section 5. That pursuant to Laws of Minnesota 1971, Chapter 824, to pay for the portion of the cost of local improvements which will not sustain a special assessment, there will be levied for the permanent improvement fund the sum of $280,000.
Section 6. There will be levied for the support of the street maintenance utility fund the amount of $3,800,000
Statement of Purpose
STATEMENT OF PURPOSE: This resolution sets the maximum property tax levy for the year 2018.
The city council must approve and certify a proposed tax levy to St. Louis County no later than September 30. The council must adopt the final levy in December of the same or a lesser amount.
The 2018 levy reflects a total increase in the General Operations Levy of 4.52 percent an increase in the Street Maintenance Levy of 3.93 percent, and the street light fee phase out of 1.73 percent. Added together, the levy will increase 10.18 percent. However, because Duluth has experienced an expanded tax base of 4.45 percent this year, the overall impact to property owners in Duluth is approximately 4.00 percent.
As proposed, the average homeowner ($160,000 homestead) will see an estimated annual increase of $30 in the City portion of their property tax statement.
Currently, the City of Duluth receives the smallest portion of overall property tax, behind St. Louis County and ISD 709. Despite the proposed increase, the City still believes we will be smallest portion of the overall tax bill.
The council will have the opportunity to discuss budget priorities and the funding for these priorities before the final levy is set in December.