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North Mankato council weighs preliminary levy options, utility fee and equipment purchases
Summary
At a Sept. 15 work session, North Mankato Finance Director Ryan outlined cost-saving measures and three preliminary levy rate options and proposed a new utility fund/fee; the council discussed buying three Nicollet County dump trucks and splitting a Caswell Park mower cost with the Football Fund.
Finance Director Ryan presented options the City could use to lower the proposed levy at a Sept. 15 North Mankato City Council work session, including departmental cost reductions, seeking sponsorships for Symphony on the Prairie, reducing fleet purchases and trimming a planned transfer to the Caswell fund.
The recommendation included exploring a new utility fund and a utility fee to cover electric utility costs such as street lighting. Finance Director Ryan said comparable cities use such fees and noted that St. Peter charges an environmental services fee; she said a fee could further reduce the levy. Mayor Carlson said he "would like to learn more" about the approach. Council Member Peterson and Council Member Whitlock expressed interest in exploring the option; Council Member Oachs urged caution. City Attorney Kennedy advised that an ordinance and public hearing would be required, so any levy impacts might not occur until 2027.
Council discussed two near-term capital requests that would affect the 2026 budget. Public Works Director Arnold described an offer to purchase three used dump trucks from Nicollet County at a reduced price that would add about $105,000 to the budget. Caswell Park staff requested a mower that would add approximately $93,000; splitting that cost with the Football Fund would lower the levy impact to about $46,500.
Ryan presented three preliminary levy rate options: a 0.641% increase, a 1.385% increase and a 1.591% increase. Council Member Peterson and Council Member Steiner said they preferred setting the preliminary levy at 1.591% while continuing to pursue additional cuts; Council Member Oachs favored the 1.385% option, saying there was still room to reduce expenses. Mayor Carlson and Council Member Whitlock indicated agreement with the approach of setting a higher preliminary rate and maintaining flexibility to trim spending before the final levy.
The council was scheduled to set the preliminary levy during its upcoming regular meeting; City Attorney Kennedynoted the ordinance and hearing requirements that would apply if the council pursues a new utility fee. The council did not take a formal vote on the fee at the work session but identified areas for further staff analysis.
