Duluth Mayor Don Ness has announced his plan to get rid of next year's eight-and-a-half million dollar deficit.
The mayor presented his 2009 balanced budget to the City Council last night.

So what does this mean for property taxes?

Ness' proposal calls for a levy of about 14-point-six million dollars.
If the plan goes through as is, the city says a person owning a 167-thousand dollar home will pay three dollars more a year than they do now.

The Mayor's 2009 financial plan is one percent larger than 2008's budget.

"We also within this budget absorb a three percent pay increase across all functions of city government," Ness said.

One of the biggest on-going challenges remains funding the city's retiree health plan.

"The cost of providing retiree healthcare is increasing at an exponential rate and we'll be-we're anticipating another 800-thousand dollars of increase in 2009," said Ness.

To help cut costs, Ness says there are 37 fewer general-fund positions in next year's budget compared to this year.

"That has a cost savings of more than three-point-one million dollars," Ness said.

The city is also anticipating the collection of one-point-two million in parking fines, a 650-thousand dollar increase from the budgeted amount in 2008.
Ness says his focus is to improve things within the city limits.

"It is our goal and I hope our shared goal with the council to rebuild confidence in city government, to make city government a more reliable partner with the community," Ness said.

In other action, the city council is expected to move, in the near future, on a measure to cut the salary for Deputy Fire Chief Bryan Bushey.
The resolution calls for a salary decrease of 25 dollars a month.

Bushey's current salary is just under 88-thousand a year.

According to Ness' budget, about $1.6 million is set aside for 2009 city overtime expenses.
The Minnesota Auditor reported earlier this year that Duluth spent $3.4 million on overtime in 2007.