The Free Press, Mankato, MN

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    Mankato taxes

November 28, 2009

Mankato property taxes to rise by 5 percent

Schools contribute largely to 2010 increase

By Dan Linehan

MANKATO — The typical Mankato home will see a typical tax story: Property taxes payable in 2010 will rise by several percent as local governments raise their levies.

According to figures provided by the Blue Earth County assessor’s office, taxes on a home costing about $150,000 will rise from $1,402 in 2009 to $1,469 next year.

These figures assume no increase in valuation, but some properties are seeing a rare decrease in value as the housing slump is reflected in appraisals.

There are no more so-called “truth in taxation” hearings this year, but most local governments are still holding open meetings to talk about their budgets and tax levies.

Mankato public schools accounts for about two-thirds of the increase in a Mankato taxpayer’s bill.

The school district’s preliminary levy increase is 9.5 percent, with virtually all of it caused by a decision to borrow about $12 million to pay for its employees’ health care in retirement.

The retirement benefits were part of a pre-existing obligation, and the district would have had to pay $1.5 million out of its general fund if it didn’t borrow the money this money.

The two other major local governments supported by Mankato taxpayers, the city and county, plan on raising their levies slightly.

In Mankato, a 4.26 percent levy increase translates into a tax decrease for some homes because of a higher-than-expected increase in the tax base.

The city has spent much of the year reducing its budget after steep state aid increases, but they still have an effect on its budget.

Blue Earth County’s levy is slated to rise by 2.91 percent.

Health insurance costs continue to rise, with increases predicted at about 8 percent for the county and 10 percent for the city.

The county borrowed $16.5 million to build its Justice Center but the loan payments haven’t yet begun.

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