North Mankato is moving forward with a .5-percent reduction in the tax rate for 2019 and has set the proposed Tax Levy for next year at nearly 6.9-million dollars.
Finance Director Kevin McCann says the Nicollet County Auditor updated the City on property values, which shows were higher than originally estimated.
“So we said, we could lower the tax rate even further based on that increase, but we decided to just go back to the half-percent, have a little extra cushion available for some projects that have come up with the extremely wet summer. With Pierce Avenue, with the sewer repairs there as well as some ravine maintenance items.”
City staff expects the council to consider a .8-percent reduction in the tax rate, instead of .5-percent, if the costs associated with the improvements come in lower than anticipated.
The proposed tax rate of 51.6-percent will grow the tax levy by 606-thousand dollars due to the market value increases, new construction and annexation taxes.
So what do the numbers mean for residents?
“If their property value stays the same and the tax rate is going down, they’d actually pay less. So, it’s really a function of how their property values change from year to year.”
Council members cannot increase the levy, but can decrease it before final adoption on December 17.