MN: Duluth Transit Authority's levy request draws scrutiny

City councilors gave Christopher Belden, general manager of the Duluth Transit Authority, a bit of a rough ride Monday evening, as they questioned his organization's 2026 levy request.

While 3rd District Councilor Roz Randorf acknowledged the vital service the DTA provides to the community, she said: "At the same time, we must also recognize the responsibility we hold to Duluth taxpayers."

That includes a duty to ask tough questions, when necessary, Randorf suggested.

She noted that the DTA's proposed budget includes a $996,000 increase in anticipated local taxpayer-supported operating costs above what it expects to spend this year.

"That represents a 43% jump — an increase that is simply not sustainable for the citizens who fund it through our property tax levy," Randorf said.

The picture doesn't get any brighter, with an anticipated increase to $2 million by 2027 and $7 million by 2030, Randorf suggested.

At large Councilor Arik Forsman joined Randorf in offering an amendment that would have trimmed the proposed 2026 DTA levy by about half. However, he noted that this would still represent a significant increase above the current year's ask, to the tune of 22%.

"There is no cut being proposed tonight. There is a cut from a proposed budget (increase) of 43%," Forsman said.

At large Councilor Azrin Awal noted that the DTA's federal and state funding sources are diminishing as one-time pandemic-relief aid is nearing exhaustion. She pointed out that those dollars had actually enabled the city to trim local taxpayers' DTA support in the past couple of years.

Awal expressed alarm at the prospect of diminished bus service, "as someone who has mobility issues and has concerns driving." She explained that she has regularly relied on the DTA both as a student and a young working adult.

Rather than capping the DTA at no more than about half of what it requested, 4th District Councilor Tara Swenson suggested the talks should continue, knowing there would still be time for compromise before the final budget and local levy figures are approved for the bus service.

While Swenson said she did not feel comfortable accepting a 43% increase outright, she offered support for "continuing to have those conversations."

Joining Swenson in her opposition to the proposed amendment, 1st District Councilor Wendy Durrwachter said she nevertheless supported efforts to make the DTA as efficient yet useful as possible for residents.

"Some of the most vulnerable people in our community use the bus," Durrwachter noted.

Belden had advised councilors that the proposed levy reduction could force the DTA to discontinue the free service it offers to people using a wintertime warming center in Lincoln Park and to cease a trolley service running between Canal Park and downtown Duluth. He suggested additional yet-to-be-determined service reductions would likely be required.

Forsman said the DTA's levy request would equate to about a 2% hike in the citywide levy — a subject that also generated heated debate Monday evening.

After consulting with Belden earlier in the day, 2nd District Councilor Deb DeLuca said she had a better understanding of the complexity of the DTA's budget and its long-term plan to build out a system that would be more self-reliant and less levy-dependent in the future.

"We need to understand that to a greater extent before we vote on the final budget," she suggested. "So, I'm following Councilor Swenson's recommendation."

Councilors Forsman, Randorf and co-sponsor at large Councilor Lynn Marie Nephew agreed to withdraw their motion after taking a read on the room's temperature.

The max levy requested by the DTA was then unanimously approved, but with the understanding that further negotiations to rein in the proposed cost will follow in the coming months.

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