The Free Press, Mankato, MN

Local News

September 7, 2010

North Mankato approves levy hike

By Dan Linehan The Free Press

NORTH MANKATO — North Mankato will increase its 2011 levy by no more than 3.41 percent, the City Council decided Monday, though Mayor Gary Zellmer says the council has looked “very sharply” at fall budget cutting in recent years.

Some of those reductions have already been made this year, including the layoff of two employees and the freezing of non-union salaries. That will make fall cuts more difficult, if they are coming as Zellmer hinted.

In addition to late-year levy reductions, previous years have brought changes once the budget year actually starts. During each of the past two years, the Legislature’s changes to state aid have led North Mankato to reduce its spending by roughly a quarter million dollars.

A similar question mark is hanging over 2011, given the state’s budget shortfalls.

“What happens if they cut it all?” Councilwoman Diane Norland said.

The city would “probably be shutting the door, turning off the lights,” Mayor Gary Zellmer said, a slight exaggeration.

City Administrator Wendell Sande said such a scenario would necessitate “draconian-type” cuts, though reductions rather than a total elimination of local government aid is more likely.

The preliminary 2011 levy assumes no salary increase for all city employees, including for its sole union, of police officers. Their contract runs through 2010, and Sande said the city will be seeking a wage freeze from the union, probably in a 1-year contract.

The 3.41 percent levy increase brings the levy to $4,978,464, an increase of $164,310. Of that increase, about a third is due to rising interest costs to pay off debt.

Of the remaining $102,454 in levy increase, most is coming from a reduction in state aid. The city actually gained about $500,000 in local government aid in 2010 and was able to reduce its general fund levy by about $140,000 for 2011. But $228,659 in cuts to the city’s so-called “market value credits” led to the overall levy growth in 2011.

The library budget of $436,745 will be unchanged in 2011, and the city aims to maintain an acquisition budget of 20 percent, Sande said.

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