With Duluth facing a major budget shortfall, Mayor Don Ness is searching for ways to make ends meet.

One proposal, announced at last night's State of the City Address, is to sell the steam plant and gas utility.

This option has sparked controversy.

Duluth's budget crisis is forcing community leaders to look for innovative solutions.

During Mayor Don Ness's State of the City speech he suggested that the sale of the steam plant and gas utility could bring the city tens of millions of dollars.

"Identify what are the key pieces of information. What are the issues at hand. Try to resolve those and have discussions internally and with the community on what a package should look like to put up for an auction, a nationwide auction," said Duluth Mayor Don Ness.

Duluth Chamber of Commerce members say they are concerned about the high rates Comfort Systems is charging, while making little to no profit.
Ness says if the gas utility is sold, customers will be protected.

"Making sure the ratepayers, their interests are being protected, and we're getting the maximum amount of return on the sale," Ness said.

City Councilor Sharla Gardner disagrees with this proposal saying by taking gas utilities out of community hands there will likely be rate increases and a decrease in efficiency.

"The greater the distance you take something from local control and it goes to a state level the less understanding there is by the state officials of the local issues and the local community problems," Duluth City Counciler, Sharla Gardner.

Gardner adds that although Comfort Systems does not make a profit, it does generate some revenue for Duluth.

"It does bring in millions of dollars of revenue to the city year after year and if we sell this for a one-time profit that is extremely short sighted and unwise," Gardner said

Before any auction can be held, the city council will need to approve it.
If it passes the council the next step would be a community wide vote on the November ballot.