Mayor Reflects on Accomplishments and Tough Road Ahead, During State of City Address

DULUTH, Minn. – The Mayor highlighted projects to create housing and the growth of local industry which aims to bring new jobs; however, when looking towards the future, he offered a sobering reality.

City officials, past and present, were in attendance Wednesday evening for the 2025 State of the City Address (SoCA) at Ordean East Middle School. It is the second address Duluth Mayor Roger Reinert has delivered during his term.

The Mayor praised the new Amazon distribution center and the Sofidel plant expansion, which aims to bring new jobs to the city. Reinert spoke about the seven city employee union contracts he’s participated in negotiating. “We settled six of those labor agreements, and negotiations are currently underway with Fire to get to seven,” he said.

In his speech, the Mayor highlighted the net 0% property tax levy “for the first time after a decade of 9% average year over year increases. A significant step towards a tax burden our residents and businesses can both afford and sustain.”

Later in the address, Reinert echoed back to his first SoCA when he initially announced the net 0% increase and said, “it was unlikely we could do that every year. We have all the same cost drivers as everyone else in materials and wages. Again, seven labor contracts – all of which were last negotiated during the pandemic.”

The Mayor delivered a sobering reality when he said, “If we take NO other actions, we are already looking at an 18% property tax increase in 2025 and another 8% in 2026. And that smaller number in 2026 is based on the huge number in 2025.”

Mayor Reinert stated the city plans to be proactive, and while budget planning usually begin in July, the Mayor said he started last week. “I can’t tell you tonight what the property tax number will be, but I can tell you it won’t be 24% over the next two years,” Reinert said.