FOX 21 News, KQDS-DT

DULUTH - Home owners in St. Louis County will see a small increase in their property taxes next year.

The levy of 1.5 percent along with a $311-million budget was set for 2013 at Tuesday's county board meeting.

The county administrator said the pressures of reduced state and federal aid called for the tax hike, but that it should not be viewed as all that bad.

"The good news is that for the fourth consecutive year in a row we are significantly below the rate of inflation so I think that's a positive sign for taxpayers," St. Louis County Administrator Kevin Gray said.

Gray also said the county has seen a small increase in employment after the assessor's office combined with the city of Duluth.