Duluth proposes property tax increase for parks

DULUTH — Duluth voters could be considering a bigger tax to support the city's 129 parks come November.

Mayor Emily Larson last week laid out a proposal that would change the current voter-approved fixed amount sent to a parks fund each year to one generated from a percentage of property values.

"While property values have risen and the cost of supporting parks has increased," she wrote to city council members, "this funding mechanism has not."

In 2011, voters approved a property tax increase meant to supplement parks funding. The annual $2.6 million doesn't go as far as it did then, Larson said. The total $6.5 million in funds dedicated to parks struggles to keep pace with maintenance and facility upkeep as inflation increases costs, she said. Additional funding would allow the city to invest in deteriorating community centers, playgrounds and athletic facilities. If voters agree to the change, 2023 property tax proceeds for parks would grow to $4.2 million, in addition to other parks funding.

The change from a fixed dollar amount to a fixed percentage would have tax collection vary in line with property values, and the rate would initially restore the fund to what property owners first paid in 2012. The owner of a $200,000 home would pay an additional $36 for parks in 2023.

The council on Monday voted to alter Larson's proposal, approving an amendment that puts a 25-year end date on not only the potential increase but the current parks tax.

The general city property tax levy for the coming year is still unknown, said councilor Roz Randorf, who offered the amendment. This tax increase would be "on top of that," she said.

"Our parks are vital," she said.

Larson said Tuesday morning that a larger investment in parks is a community need rather than "a nice to have," with some facilities in poor shape. The importance of parks, especially during the pandemic and tough economic times, highlights that need, she said.

"These are the last places people can just exist," Larson said. "You don't need a membership, you don't need to prove you have business there. … All of that creates a sense of place, belonging, hope and purpose, and there is real value to that."

But residents will be able to decide if they want to make that investment, she said.

Parks director Jim Filby Williams said Monday night that the facilities intended to benefit from an approved increase would be named before the November general election, if the council approves ballot language in August.

Jordan Vandal wrote that property values for his Smithville neighborhood home have only risen since his purchase in 2016.