OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Duluth City Council Personnel Interviews, Agenda Session, and 2027 Levy Presentation – September 10, 2026

City Council — Thursday, September 10, 2026
BodyDuluth, Minnesota
SessionCity Council
DateThursday, September 10, 2026
StatusNEW · FILED
Video Record
0:00 / 3:03:01

Transcript — Verbatim
0:00

I'm a Duluth resident and I'm a duplex owner and so uh I have a close experience this uh with uh water, gas, all the utilities uh decisions, this uh uh decisions that I get affected by this you know commission that makes every month and uh so and uh I have uh would like to give a brief uh background information.

0:26

I have a uh background with uh project management and uh studying and I did go to Yamday also one semester, but I have an original diploma from Turkey in uh political science and international relations.

0:41

And uh so I do have uh spent four uh four and a half years plumbing in HVAC industry uh in local contractor in Duluth, and I did heavily uh involve all the lead water replacement project that with City of Duluth did all the uh Gary New Duluth, Lincoln Park and London Road.

1:01

So I the I had a chance to uh work with City of Duluth and how it's implement all the infrastructure infrastructure work and planning and explaining to the to the residents and uh plus being as a rate payer, I thought it would be my contribution would be tremendously helpful to this commission.

1:21

That's why I apply.

1:22

So fantastic, thank you, Mr.

1:24

Aitson.

1:25

Um why don't you just expand on that?

1:27

Tell us a little bit more about why you're interested in serving in the role.

1:31

Yeah, as I uh described uh I'm uh closely in uh you know I'm a new dualx owner and I wasn't before that I wasn't really you know looking all the utility bills and everything else and and I started to look at my bills and you know do even like a research on AI and everything else.

1:54

So I I said you know I I need to be more aware as a resident, and that's kind of got me in there and and also my background with plumbing and HVAC industry for four years.

2:06

So I kinda had an understanding that as a resident that I need to be more knowledgeable and understand.

2:11

So it kind of got me into this uh uh this committee, there's this committee exists in Duluth, so I need to be uh uh involved and uh and understand because I know that this committee you know set all the rates and uh there's you know budget cycles and everything, and I know that the uh residents are getting uh informed as a public hearing before setting the rates, and I thought it would be really important that I would be involved in this process and stuff.

2:40

That's great.

2:40

I think you answered the third question about personal strengths or unique perspectives.

2:44

Is there anything else you want to add to that one?

2:47

No, it's mainly that's the because two reasons that uh that would like to have uh bring a dual perspective to commission rate setting and infrastructure planning, because I saw as a project manager how is it being executed in field.

3:00

So anything else you want to add to your uh qualifications or interests or background for the position?

3:06

No, I don't have any conflict of interest.

3:09

I can say that because I had uh experience, like I said, in the past as a project manager and in the plumbing in HVAC, and now I'm just a Duluth uh resident and duplex owner.

3:22

So that's fantastic.

3:24

So I'll open it up for questions, but since there's none here, I'm gonna ask the first one.

3:29

Um the Duluth Public Utilities Commission has to balance a lot of different competing interests at times.

3:35

You've got to think about maintaining the system long term and making investments and then also affordability for ratepayers.

3:41

So maybe just give me your thoughts on how you would balance all those things as a utilities commissioner.

3:46

Uh that's a good commission uh good question, and I think before I push my agenda, I would like to deeply look at the reinvestment and budget cycle plan that what uh Duluth Public Utility Commission has, and based on that information I would like to push my agenda based on that.

4:03

But I need to research and understand.

4:07

Uh so I don't know if that's help your qu answer your question.

4:11

But that's good.

4:12

Yeah.

4:12

Uh we've got a couple counselors in here, so we'll go to Councillor Johnson first.

4:16

Uh thank you, Council Enforcement.

4:18

Thank you for your interest in this uh commission.

4:20

Thank you.

4:21

And um just a question in regards um to kind of uh follow up uh along with kind of counselor for you know decisions have to be made.

4:32

Sometimes there's disagreements and um can you just share how you handle or how you navigate having potential disagreements and coming to compromise in the best interest of our community and city.

4:44

Are you talking about mainly like a controversial rate that can affect the uh how yeah?

4:51

So how do you handle this?

5:00

Um well I think it's the answer is on the uh bylaws that exactly saying that uh the loot public utility commission do a public hearing, which uh my experience with uh the with the residents giving the difficult uh decisions is best the way then uh it is to explain explaining them uh and showing them how are we going to do it.

5:19

So I think being an uh uh objective with the resident and what is the plan and how are we going to implement this plan?

5:29

It's better than just showing or giving them a rate.

5:32

I think that would just you know clear up the questions, especially for difficult uh decisions topics.

5:40

Thank you, Councillor Johnson.

5:41

Next we have Councillor Desatel.

5:44

Thank you very much.

5:44

Thanks a lot for replying.

5:46

Um I am serving on the the public utilities commission as a counselor, so um we need folks, and I appreciate that.

5:54

I appreciate your finance background.

5:55

Um when you were working working in HVAC uh for AG O'Brien.

5:59

Um tell me a little bit about what you learned about our infrastructure.

6:03

Um were you surprised at what things you saw and the age we're at with our infrastructure and problems that we have and know that we've got uh kind of a backup of um old infrastructure issues to resolve?

6:15

Yes.

6:16

Uh it's uh it's so hard to understand as a resident that what are those pipes looks like and why do we need to replace and why do we need to invest?

6:25

And it's because if we have so many pipes that uh as a lead pipes from 1970s, this infrastructure I mean in Duluth and it just needs attention.

6:34

And uh because it doesn't seem as we see.

6:40

We think you know, Duluth has the great water source, everything else, uh you know, from the north and stuff.

6:45

But you know, the pipes and and having a chemical reactions, all the dead waters, it's affect human, you know, the uh health and everything else, and this is really important.

6:56

Uh especially in the long longevity of this uh you know using the utilities.

7:02

And I've seen quite a bit all the pictures, because when we were doing all the uh lead replacement project, we we used to the camera or the sewer and stuff.

7:10

We would be able to see all the pipes, how they are getting corroded and how terrible they are, and they need to be attention and replaced.

Discussion Breakdown — Share of Meeting
Budget█████████████████17%
Public Engagement███████████11%
Public Works███████████11%
Housing And Redevelopment Authority██████████10%
Affordable Housing████████8%
Public Utilities██████6%
Procedural██████6%
Public Safety██████6%
Public Transportation█████5%
Summary of Proceedings

Duluth City Council Agenda Session and 2027 Levy Presentation – September 10, 2026

The Duluth City Council held a personnel committee interview and an agenda session on September 10, 2026, before the September 28 levy certification vote. The council reviewed a large consent calendar, questioned staff on a proposed Legacy TIF housing project, debated a council code of conduct, discussed 4th Street parking and bike-lane changes, and heard Mayor Reinert's administration present the proposed 2027 maximum property tax levy. No final budget or levy vote was taken; the council is scheduled to act on the maximum levy on September 28 and to adopt the final budget in December.

Personnel Committee Interview

  • A Duluth resident and duplex owner, Mr. Aitson, interviewed for a vacancy on the Duluth Public Utilities Commission. He described his project-management background, 4.5 years in plumbing and HVAC, work on city lead water line replacement projects, and interest in bringing a ratepayer and property-owner perspective to utility rate setting and infrastructure planning.
  • He said he would study the commission's reinvestment and budget cycle before advancing ideas and supported explaining plans through public hearings to residents. He stated that he had no conflicts of interest.
  • Council members asked about balancing long-term system investment with ratepayer affordability and about navigating disagreement. The chair said the application would be held over for a vote at a subsequent meeting.

Consent Calendar and Pulled Items

  • Items 2–6, including the proposed 2027 general levy, park levy, HRA levy, Duluth Transit Authority levy, and the Law Enforcement Labor Services 538 collective bargaining agreement, were pulled from consent by Councillor Darwakter for further review.
  • Resolution 793, the Legacy TIF housing district plan, was pulled from consent.
  • Resolution 810, the standing-rules code of conduct amendment, was pulled from consent.
  • Resolutions 742 and 743, the 4th Street bike-lane and no-parking measures, were pulled from consent for further discussion.
  • Other consent items received questions but were not pulled, including the Microsoft enterprise agreement with an annual amount of $494,870.60 and a total amount of $1,484,611.80, the Highland Water Tower radio equipment agreement, Canal Park Drive design services at $102,495, Cross-City Trail Phase 6 design services at $89,990, the Upper Lakeside Water Zone Interconnect Phase 2 contract at $268,625, emergency Duluth Energy Systems steam repairs, and the Norton Road Bridge contract amendment.

Discussion: 2027 Maximum Levy and Budget

  • Mayor Reinert presented a recommended maximum total property tax levy increase of 3.65% for 2027, a net levy impact of 2.65% after subtracting 0.98% new growth. He said this would be the third consecutive year Duluth had the lowest net levy among its peer group, and that the three-budget average levy increase was 1.77%. A 1% city levy increase equals about $455,000.
  • The administration reported a structural gap: expenses are growing by about 6–7% annually while revenue grows about 1.5%, leaving a recurring deficit. The 2027 budget begins with a $5.5 million deficit, resolved through roughly $1.6 million in property tax revenue, a $1.8 million one-time transfer of previously set-aside municipal broadband funds, anticipated Minnesota Power franchise fee revenue of just under $1 million above forecast with $250,000 dedicated to sustainability, $1.2 million in payroll and benefit vacancy savings, transferring park operational expenses to the general fund, and about $532,000 in contingency and miscellaneous reductions.
  • Mayor Reinert said local government aid has been flat since 2023 and would be about $38 million instead of $35 million if it had kept up with inflation. He said fuel costs are running about $300,000 over budget, and that commercial tax base growth is essential because commercial property pays roughly two-to-one compared with residential. He noted city new growth was just under 1% while St. Louis County reported about 7% growth.
  • Budget staff said the dedicated park levy has not changed since 2011, with a maximum of $2.6 million, and the budget shifts operating costs so that 100% of the park levy can go to park maintenance and capital work. The budget also sets aside nearly $1 million for 'small ball' capital projects under $50,000. No layoffs or across-the-board cuts are proposed.
  • Councillor Foresman questioned whether one-time funds and low new growth are sustainable and asked for alternatives to one-time funds in future years. Councillor Johnson expressed concern about below-1% new growth and the need to build momentum in commercial tax base growth.

Discussion: Legacy TIF Housing District

  • Developer Brian Forcier said the project next to Lake Superior College has been eight years in the making, would create 148 units, and is fully financed pending approval of the TIF district. He said 30 units would be affordable to households at 50% of area median income and would not be occupied by full-time students; the remaining units would target student housing. Construction could start by the end of September and take 14–18 months.
  • Administration and HRA staff stated the project's total cost estimate is $34.068 million, the proposed TIF amount is capped at $5.7 million, the district term is 26 years, and the estimated future market value is about $35.9 million. The HRA would administer the TIF and retain a 10% administrative fee; the developer and owner would receive 90% to pay debt service. Debt service goes negative in year four without the TIF.
  • Councillors raised concerns about missing TIF application, pro forma, and development agreement documents. Staff said the development agreement is between the HRA and the developer and would be filed against the property. Councillor Darwakter asked for the TIF application, development agreement, and pro forma before the next council vote, and staff said they would work to supply supporting documents.

Discussion: Code of Conduct

  • Councillor Johnson and Vice President Kennedy presented Resolution 810, amending standing rules to include a code of conduct. Johnson described it as aspirational rather than punitive and based on League of Minnesota Cities and National League of Cities recommendations.
  • Councillor Randor said the draft was too long and offered to support a succinct 149-word version. Johnson and Kennedy said they were open to shortening it. Councillor Klana raised concerns about power dynamics and the risk of civility language being used against people who are culturally different. Councillor Darwakter noted that St. Cloud had redacted its code after ACLU concerns about First Amendment issues. City Attorney Lear said the office reviewed the draft and had no concerns but would continue working with the council.
  • The item was pulled from consent; no final revision decision was made.

Discussion: 4th Street Bike Lanes and Parking

  • Councillor Darwakter pulled Resolution 743, and Councillor Foresman pulled the linked Resolution 742. The project would remove approximately 99 parking spaces to install bike lanes and improve pedestrian and accessible facilities.
  • Staff said the Parking Commission voted 4-3 and cited parking utilization data showing many overnight spaces empty. Councillors noted concerns from residents and the Commission on Disabilities. Staff said loading zones and accessible spaces will be thoughtfully placed in later design, and resident parking permits could be added later if needed.

Other Discussion Items

  • Councillor Klana asked about the proposed coal backup fuel purchase for Duluth Energy Systems. Staff said coal degrades, the old stockpile was sold to a university, and coal remains a backup fuel because boiler-conversion bids were too expensive. Eliminating coal remains a goal, but no timeline was given.
  • On the Consolidated Maintenance Campus project, staff explained that the HCM Architects contract amendment reflects moving from pre-design into design and construction administration under a previously competed RFP. The project target budget is about $45 million, and the funding source is OPEP retiree-health savings. Staff agreed to provide updated savings information.
  • The council reviewed public safety resolutions including the Lake Superior Forensic Technology Task Force joint powers agreement, which staff said is unrelated to Flock technology and involves digital device forensic work under search warrants.

Key Outcomes

  • No final votes were taken on the consent items during the agenda session; items pulled from consent will be considered at a future council meeting.
  • The maximum levy presentation set a full-day budget retreat for the next day, and the council will act on the maximum levy by September 28 before adopting the final budget in December.
  • The Public Utilities Commission applicant was held over for a later vote.
  • Staff committed to providing the Legacy TIF application, pro forma, and development agreement, as well as updated Consolidated Maintenance Campus savings figures.

Meeting Transcript

I'm a Duluth resident and I'm a duplex owner and so uh I have a close experience this uh with uh water, gas, all the utilities uh decisions, this uh uh decisions that I get affected by this you know commission that makes every month and uh so and uh I have uh would like to give a brief uh background information. I have a uh background with uh project management and uh studying and I did go to Yamday also one semester, but I have an original diploma from Turkey in uh political science and international relations. And uh so I do have uh spent four uh four and a half years plumbing in HVAC industry uh in local contractor in Duluth, and I did heavily uh involve all the lead water replacement project that with City of Duluth did all the uh Gary New Duluth, Lincoln Park and London Road. So I the I had a chance to uh work with City of Duluth and how it's implement all the infrastructure infrastructure work and planning and explaining to the to the residents and uh plus being as a rate payer, I thought it would be my contribution would be tremendously helpful to this commission. That's why I apply. So fantastic, thank you, Mr. Aitson. Um why don't you just expand on that? Tell us a little bit more about why you're interested in serving in the role. Yeah, as I uh described uh I'm uh closely in uh you know I'm a new dualx owner and I wasn't before that I wasn't really you know looking all the utility bills and everything else and and I started to look at my bills and you know do even like a research on AI and everything else. So I I said you know I I need to be more aware as a resident, and that's kind of got me in there and and also my background with plumbing and HVAC industry for four years. So I kinda had an understanding that as a resident that I need to be more knowledgeable and understand. So it kind of got me into this uh uh this committee, there's this committee exists in Duluth, so I need to be uh uh involved and uh and understand because I know that this committee you know set all the rates and uh there's you know budget cycles and everything, and I know that the uh residents are getting uh informed as a public hearing before setting the rates, and I thought it would be really important that I would be involved in this process and stuff. That's great. I think you answered the third question about personal strengths or unique perspectives. Is there anything else you want to add to that one? No, it's mainly that's the because two reasons that uh that would like to have uh bring a dual perspective to commission rate setting and infrastructure planning, because I saw as a project manager how is it being executed in field. So anything else you want to add to your uh qualifications or interests or background for the position? No, I don't have any conflict of interest. I can say that because I had uh experience, like I said, in the past as a project manager and in the plumbing in HVAC, and now I'm just a Duluth uh resident and duplex owner. So that's fantastic. So I'll open it up for questions, but since there's none here, I'm gonna ask the first one. Um the Duluth Public Utilities Commission has to balance a lot of different competing interests at times. You've got to think about maintaining the system long term and making investments and then also affordability for ratepayers. So maybe just give me your thoughts on how you would balance all those things as a utilities commissioner. Uh that's a good commission uh good question, and I think before I push my agenda, I would like to deeply look at the reinvestment and budget cycle plan that what uh Duluth Public Utility Commission has, and based on that information I would like to push my agenda based on that. But I need to research and understand. Uh so I don't know if that's help your qu answer your question. But that's good. Yeah. Uh we've got a couple counselors in here, so we'll go to Councillor Johnson first. Uh thank you, Council Enforcement. Thank you for your interest in this uh commission. Thank you. And um just a question in regards um to kind of uh follow up uh along with kind of counselor for you know decisions have to be made. Sometimes there's disagreements and um can you just share how you handle or how you navigate having potential disagreements and coming to compromise in the best interest of our community and city. Are you talking about mainly like a controversial rate that can affect the uh how yeah? So how do you handle this? Um well I think it's the answer is on the uh bylaws that exactly saying that uh the loot public utility commission do a public hearing, which uh my experience with uh the with the residents giving the difficult uh decisions is best the way then uh it is to explain explaining them uh and showing them how are we going to do it. So I think being an uh uh objective with the resident and what is the plan and how are we going to implement this plan? It's better than just showing or giving them a rate. I think that would just you know clear up the questions, especially for difficult uh decisions topics. Thank you, Councillor Johnson. Next we have Councillor Desatel. Thank you very much. Thanks a lot for replying. Um I am serving on the the public utilities commission as a counselor, so um we need folks, and I appreciate that. I appreciate your finance background. Um when you were working working in HVAC uh for AG O'Brien. Um tell me a little bit about what you learned about our infrastructure.

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