BY COUNCILOR STEWART:
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 2008 for general operations is hereby determined to be the sum of $13,543,600 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 $7,761,500.
Section 3. For the payment of debt, there will be levied for the general obligation debt fund the sum of $5,047,100.
Section 4. 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 $422,100.
Section 5. There will be levied for other post employment benefits - retiree insurance, the sum of $312,900.
STATEMENT OF PURPOSE: This resolution sets the maximum property tax levy for the year 2008. The proposed levy of $13,543,600 is 10.9 percent higher than the 2007 levy and reflects an overall net increase of $1,335,200.
The impact on the actual tax rate will be minimal because the majority of the increases proposed are based on new growth, a TIF district retirement, and capturing the increased taxable market value. The street improvement levy increase of $261,300 is based on the value of new growth in the City and represents 2.1 percent of the total increase. The levy for OPEB - retiree insurance of $312,900 is based on the value of the retirement of TIF district number three and is an additional 2.6 percent of the increase. The net remaining increase of $761,000 in the levy is based on capturing the percent increase in the total taxable market value of 5.2 percent, and an additional 1 percent to be used for hiring additional police officers.
If the levy is approved as proposed, the average homestead valued at $164,500 will pay an additional $9 per year – from $327 to $336; with the average business valued at $468,900 paying an additional $51 per year – from $1,979 to $2,030 for city services.
The city council must approve and certify a proposed tax levy to St. Louis County no later than September 15. The council must adopt the final levy in December of the same or a lesser amount.