DULUTH, Minn. (Northern News Now) - Facing a $7 million budget deficit, Duluth residents are been bracing for a sharp rise in property taxes.

However, Mayor Roger Reinert’s proposal to the City Council on Thursday night offered a smaller increase than many expected.

Reinert pitched what he called an “inflation-only tax levy,” aimed at keeping property tax increases aligned with inflation.

The plan would set the maximum levy increase at 4.1%. With recent growth factored in, the mayor said the increase would effectively land closer to 2.7%.

“Our revenue comes from primarily three things: local government aid, our local property tax levy, and our 1% sales tax,” said Reinert.

If approved, a Duluth home valued at $275,000 would see a property tax increase of about $26, assuming there’s no

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