By Mark Fischenich
NORTH MANKATO — Homeowners in North Mankato are going to see their property taxes rise in 2009, about $105 for the owner of a $150,000 home — or 6.5 percent.
Just over half of the increase ($56) is due to a rising school levy, with the county ($21) and the city ($28) accounting for the remainder of the tax hike.
The numbers are based on preliminary levies approved by the Nicollet County Board, the North Mankato City Council and the Mankato Area School Board earlier this fall. The levies could be decreased — but not increased — following public budget hearings scheduled for next week, but both the city and county plan no reductions at this point.
Nicollet County’s preliminary budget from September already has been trimmed by just over $400,000, and reserve funds are being used to keep the planned 6.96 percent levy increase from being any higher, said Auditor Bridgette Kennedy.
“The budget committee worked extremely hard this year,” Kennedy said.
The overall proposed budget of $31.5 million is funded through state and federal sources, along with the $14.5 million in revenue the county plans to generate through property taxes.
A number of factors drove up the cost of operating county government, she said, including services required by the state that the state doesn’t pay for, upgrades to the county’s electronic mapping system and the cost of repaying bonds sold to finance reconstruction of the Fort Road.
There’s also spending for a new dispatch center for the sheriff’s department and the addition of a deputy for the department.
Costs of providing salaries and benefits for employees, especially health care coverage, are also driving up expenses.
“Personnel is a big part of our budget,” Kennedy said.
In North Mankato, similar cost drivers were blamed for the planned 5.8 percent hike in the city levy to $4.9 million for 2009.
The hiring of an additional police office, rising energy costs, salary and benefit costs and public works spending are all contributing.
In addition to the levy increase, the city will benefit from its first full year of collecting a half-percent local option sales tax. The sales tax, approved by the Legislature in the spring, is dedicated for a variety of projects, ranging from a library expansion to park improvements to downtown development.
The school district’s levy is rising due to the $33 million voter-approved bond referendum in April, which will mostly be used to build a new elementary school near the Minnesota State University campus.
