City of North Mankato officials are beginning the process of putting together next year’s city budget. City manager John Harrenstein says they’re trying to keep property taxes manageable for residents.

“We have attempted to maintain the tax levy growth to what new construction is,” said Harrenstein. “That corresponds with a one and a half percent rate reduction for next year and a six percent decrease in the last seven years.”

Harrenstein says there will be some financial challenges.

“We are recommending no pay increases for city employees next year,” said Harrenstein. “While our city employees have done a great job and we wish we could give them a raise, we have to tighten the belts.”

Harrenstein says with the state currently having a four-point-seven billion-dollar deficit he doubts the city can rely on any local government assistance from St. Paul