NORTH MANKATO — North Mankato will adopt a 13% higher tax levy next year, which will raise $1 million more for a variety of city budgets.
No residents spoke at a public hearing about the proposed tax levy and budget during the City Council meeting Monday night.
The increase means a home with a $288,600 market value would pay an additional $123 in city taxes next year. That amount does not include increases in county and school board taxes next year.
A business valued at $945,400 would pay an additional $272.
The city said that the majority of homes in North Mankato saw the county increase valuations between 11% and 22% for next year.
The impact on residential property taxpayers is blunted by the amount of new construction in the city this year and more property taxes being shifted to apartment buildings, whose values have soared in recent years.
The council will finalize the 2024 levy at their Dec. 18 meeting.
The levy increase will include money for a new drug task force police officer and an IT position as well as a couple of part-time positions.
The city will move from having 66.7 full time equivalent staff to 69.7 FTE positions next year.
The 2024 budget includes a 3% cost of living adjustment increase for employees as well as a 7.5% increase in health insurance costs.
Some of the bigger additions in next year’s budget include $211,000 being earmarked for improvements to the All Seasons Arena in Mankato. Local governments own and operate the arena, which needs major renovations, with the local governments contributing their share of renovation costs based on their population.
The budget also contains an extra $34,000 for transit costs. The city contracts with Mankato for transit services.
The city’s general fund budget will be just over $10.4 million up from $10.1 million this year. That includes $8.7 in property taxes as well as other funding sources such as state aid and permit fees.
The general fund will be $5.8 million next year with the Port Authority budget at $75,000. Just over $1.5 million will go toward debt service and the capital levy will be $882,000.
The council last year approved a tax levy that was 8.8% higher in 2023 than in 2022.