Updated: 12/18/2013 2:00 PM
Created: 12/17/2013 9:54 PM WDIO.com
By: Travis Dill
The Duluth School Board voted for a property tax levy increase on Tuesday to prevent Red Plan debt services from pulling more money from the district's general fund.
The increase means the owner of a $150,000 home will pay $61.55 in new taxes with most of that increase coming from a voter-approved operational levy.
Bill Hanson, the district's business services director, said the sale of unused properties, like Central High School, were previously factored into the school's budget. That led to a reduction of the district's general fund when the properties never sold.
Documents Hanson presented at the school board meeting on Tuesday show the school's general fund was down to $1.9 million in June.
Hanson said paying the Red Plan debt from the general fund was no longer feasible so board members passed the property tax levy increase to make up for the unsold buildings. Hanson expects the levy increase to bring the general fund back up to $6.5 million by next June.
Board members passed the increase with almost no discussion on the resolution. Only member Art Johnston opposed the tax increase.
Hanson said paying the debt service means about $16 in new taxes for a home valued at $150,000. He said that could have been much higher if not for savings in employee benefits and other areas of the budget.
Still residents like John Stromgren opposed the tax increase. Stromgren said it could push retired residents to move out of Duluth.
“What happens when the money runs out from us citizens? Mayor Ness wonders why he can't increase the population of Duluth to 90,000 people. Why should the people of Duluth stick around when they can move to a warmer climate and pay less taxes?” Stromgren said.
Voters did pass a levy increase this fall to help reduce class sizes and pay for new curriculum.
On a home valued at $150,000, the voter-approved levy will increase taxes by about $45 a year. Adding that to the board-approved levy puts the total tax increase at just over $60 a year for a home valued at $150,000.
Fitger's 5K Raises $20K For Young Athletes
It may not have felt much like spring today, but thousands signed-up to voluntarily run outside. It was the 25th Annual Fitger's 5K this morning and that means racing season in the Northland has officially started. This year, the race raised $20,000 for the Young Athletes Foundation.
Post-rehab, Injured Snowy Owl Released in Superior
A rare snowy owl that was hit by a bus in Washington D.C. and sent to Minnesota for rehab is back in the wild. The owl was released outside Superior Saturday.
Circle of Native Nations Pow Wow Celebrates Winter's End
The 25th annual Circle of Nations pow wow took place at the UWS First Nations Center on Saturday. The center's director calls it a celebration of life, especially after the long winter.
Electric Fetus Parties for International Record Store Day
The Electric Fetus in Duluth held an International Record Store Day event on Saturday. The party featured live music, limited-edition releases, snacks and prizes.
Breakfast with the Easter Bunny
The Depot held a breakfast with the Easter bunny on Saturday morning. Guests could eat, play games and take pictures with the giant bunny before the big day.