NORTH MANKATO, Minn. (KEYC) — City staff met to discuss proposals for the 2020 budget. Stemming from discussions in 2019 budget deliberations, staff came around an idea of trying to capture new growth in the tax base and avoid any increasing for existing property owners.
“We believe that the proposed tax levy will increase by approximately $110,000, that’s what we’ll be recommending. The City Council has to set the maximum levy before September 30 of this year to meet statutory requirements for our budget process. They’ll be free to increase or decrease that recommendation should they believe that they want to fund additional projects or less projects," North Mankato City Administrator John Harrenstin said.
The city of North Mankato will receive an additional $150,000 of government aid from the state of Minnesota which helps propose a modest tax increase.
“The actual tax rate as proposed by staff will be decreasing by half a percent, that will make it 3.5%. A 3.5% decrease over the last four or five years and that continues our effort to decrease the property tax rate to pre-recession levels,” Harrenstein added.
Staff also discussed the proposed food and beverage tax which applies up to one-percent on items sold in restaurants, bars and food stands, which the city estimates will bring in $50,000 and any dollar generated will reduce the annual subsidy to the Caswell Regional Sporting Complex. There has been no decision made on this proposal.