David's Blog

One month ago, the City Council appeared poised to impose the entire Street Lighting Utility Fee increase on Duluth's 3,820 businesses. The majority of council members concurrently indicated a desire to avoid having Duluth's 24,100 residential units incur any portion of the planned fee increase. Politically, it was understandable. Burden 3,820 business owners versus burdening 24,200 homeowners.

While it may have been politically justifiable, it would have been unfair to our business owners and operators. Some businesses would see their monthly street lighting utility fee increase from $3.50 to $102. Others from $3.50 to $51 per month. Others from $3.50 to $17.

The proposed formula for determining if a business would pay $102 or $17 per month is based on the City's Stormwater Utility Unit Rate System. Unfortunately, there is no direct correlation between a business' stormwater utility usage and its street lighting usage. The formula is flawed. So, too, is the disproportionate fee on business.

This is why, last week, the Chamber proposed a more equitable plan for distributing the proposed fee increase. We respectfully presented our proposal to the Duluth City Council at a meeting last Thursday. It included increasing the monthly fee on residences from $3.50 to $6.15 and the fee on businesses from $3.50 to $15.25.

The proposal takes into account that all of us, homeowners and businesses alike, benefit from the City's 3,500 street lights and 100 signalized intersection lights (stop & go lights). Businesses would still pay more to assist in enabling the City to upgrade and modernize its street lighting system. We believe it is a fair solution.

The city council is planning to decide on the street lighting utility fee at its meeting this evening at 7 p.m., in the City Council Chambers, located in the 3rd floor of City Hall. I encourage you to attend the meeting and to have your voice heard. You can also view the meeting on Public Access Community Television or listen in on 103.3 KUMD FM Radio.

Be assured, the Chamber's leadership will attend the meeting to advocate on your behalf. It will be an honor to do so. Please let me know if you have suggestions, concerns or insight to share with me regarding the proposed fee increase. I can be reached at dross@duluthchamber.com or 740-3751.

In support,
David

Late last month, the Chamber learned the City of Duluth intended to increase its Street Lighting Utility Fee. The proposed fee would increase the current monthly charge of $3.50 to a monthly charge of: $17 for small commercial buildings, $51 for medium sized commercial buildings, and $102 for large commercial and industrial buildings.

Upon learning of this proposed fee increase, the Chamber immediately challenged Mayor Ness' administration to either forego the increase or delay it's implementation. We believe the business community deserves, at minimum, to understand the rationale for the increase prior to being compelled to pay it. We also believe the City's administration should fully understand the negative ramifications that such an increase would have on the business community. A fee increase may prove to be a disincentive for businesses to operate in our beloved city. The proposed fee would appear to clearly be at odds with our mutual goal to boost economic development within Duluth's city limits; as our neighboring communities do not charge their citizens a street lighting utility fee.

I applaud Mayor Ness and his chief administrative officer, David Montgomery, for listening to our appeal. They withdrew the proposed fee increase from the planned vote scheduled to occur at the City Council meeting last week. The council's vote on the fee is now planned for Monday, January 24, 2011.

This delay provides us an opportunity to learn more about the street lighting utility fee. Let us make the most of this brief respite prior to the council taking action on the proposed fee increase.

David Montgomery will be our guest at our Chamber FORVM scheduled for:

Tuesday, January 4, 2011
8:00 a.m. to 9:00 a.m.
Play Ground Theatre
Technology Village (Superior Street Level)
11 East Superior Street

The FORVM will focus on the fee and the city's strategy for dealing with the financial challenges it will face in 2011. The FORVM may be your one chance to engage in a discussion with David Montgomery regarding the city's fees and finances.

Have your voice heard. Join us at the FORVM.

In support,
David