ST. PETER — The St. Peter City Council approved a $3.8 million preliminary levy for 2023 on Monday, an 8.5% increase.
Council members had until the end of September to set a maximum levy amount before approving final numbers by the end of the year.
The impact of the gross levy increase on residents will hinge on whether their property values stay the same or increase, although estimates indicate the average property owner could see a tax uptick next year.
Nicollet County projected a 17% increase in estimated market value. Like the city’s preliminary levy, the county will finalize market values later this year.
Examples included in the City Council’s packet show a 17% increase in value on a $150,000 home would result in a $737 property tax bill, up about $86 from 2022. If the home’s value stayed level, the tax bill would decrease by about $47.
A $250,000 commercial property seeing a 17% rise in value would lead to about $2,440 in city property taxes, about a $248 increase. No change in value would decrease the bill by about $159, according to city estimates.
Other area cities have been dealing with upticks in estimated property values heading into 2023. Mankato’s proposed levy increase could raise property tax bills by about $137 on $150,000 homes.
Behind state grants and aid at 39%, property taxes at 30% are projected to be St. Peter’s second largest source of revenue in 2023. The next largest portion of revenue is 18% from utility fund transfers.
St. Peter’s proposed revenues for 2023 amount to about $8.9 million.
For expenditures, the proposed budget includes a 16.6% increase in building inspection funding — funding was lower than average in 2019 and 2020 — and a 9.1% increase in police funding. One new patrol sergeant and two new patrol officers took their oaths of office for the police department Monday.
Decreases include 33.3% in election expenditures — 2023 is an off-year compared to 2022 — 9% in parks and 7.7% in public works administration.
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