NORTH MANKATO — The North Mankato City Council voted Monday to approve a preliminary maximum property tax levy increase of 1.59% for 2026, setting the ceiling for next year’s budget while preserving the ability to lower the final rate before it is adopted in December.
The decision followed a review of three potential levy scenarios presented by city Finance Director Jessica Ryan during a work session held prior to the regular meeting. The three options ranged from a 0.64% increase to a maximum 1.59%, with the latter including additional funding for equipment purchases.
“If anybody’s been paying attention, there’s been tons of sacrifices, from streets to water to rec to office supplies,” council member Matt Peterson said. “Let’s do what we can to really show people that we’re paying attention this year and everybody’s chipping in.”
The proposed 2026 levy totals about $10.2 million, an increase from $9.6 million 2025 levy.
The approved preliminary levy includes $93,000 to replace a mower at Caswell Sports facilities. This could be partially offset by a $46,000 contribution from the city’s football fund, which could reduce the final levy percentage, according to Ryan.
Council member Sandra Oachs was the only member to vote against the higher levy amount.
“I’m more of a stickler,” she said. “I would rather see, like, a 1.385% and then we can work around that, because then we know it’s not going to be any higher than 1.385%.”
At the work session, council members considered cost-saving alternatives and discussed potential new revenue sources, including a proposal to implement a monthly utility fee for street lighting. The proposed street light utility fee would range from $1.25 to $2 per month. If adopted, the fee could help shift street lighting costs out of the general fund and into its own category.
“I don’t love the fees,” Mayor Scott Carlson said. “But I’m kind of creating a line in the sand in my head where it’s a fee for needs. We need to pay for the lights. We need to pay for electricity. If it’s a fee for needs, then this is a transparent way of assessing that.”
Public hearings on the 2026 budget and tax levy are scheduled for Dec. 1, with a second hearing, if needed, set for Dec. 15. Final adoption of the budget and levy is expected to take place following the conclusion of public input.
Under Minnesota law, the city must certify its preliminary levy to the Nicollet County auditor by Sept. 30. Once certified, the preliminary amount sets the maximum the city may levy for the coming year. The final amount, however, can be reduced before final adoption in December.
“I just want to make sure that we have a high enough ceiling,” Carlson said on keeping the levy at a higher percentage in case last minute expenses arise.
The levy amount ultimately selected will depend on final budget priorities, potential implementation of new fees and the council’s decisions during the final budget adoption process in December.