There were few surprises in the 2006 preliminary budget that the Mandan City Commission adopted Tuesday.

The city will actually reduce the number of mills it levies from 115.14 to 111 in the budget that has been devised by Mandan finance Director Greg Welch. But due to a strong increase in the city's property values - an overall total of 10.3 percen - an additional $189,000 in property taxes will be generated.

The city's share of the tax dollar, which is split between such entities as the school district, park district and Morton County is 22.8 cents, according to Welch, down slightly from last year when the city received about 23 or 24 cents of each property tax dollar. A city mill is worth $28,661, up 10.3 percent from last year

"In relationship to all the other revenues the city collects, property tax makes up about 18 percent," Welch told commissioners.

The budget provides city employees 3.8 percent in salary increases and covers the city's portion of a steep increase in health insurance premiums of 13.1 percent. Welch said the health insurance increase didn't catch the city by surprise, and it had actually budgeted for a 20 percent increase last year.

The city is estimating a $2,124,900 outlay in capital expenditures for 2006.

The budget also includes an increase in water and sewer utility rates. Water will increase a nickel for every 100 cubic feet used, as will sewer. The Missouri West Water System will see an increase of 3 cents per 1,000 gallons used and industrial wastewater charges will increase 15 cents per cubic feet.

Welch noted the average residential home uses about 800 cubic feet of water a month which means the owner will see a utility increase of 80 cents - a nickel for the water and a nickel for the sewer.

Commissioner Tim Helbling asked the staff to look into the possibility of capping the dollars received by public transportation, the Jobs Development Authority and building reserve fund.

Helbling said he didn't think it was fair that since property values saw an increase that these particular funds see a similar increase.

"We should restrict what they receive to a reasonable amount," Helbling said. "If they want above and beyond what is set, they should have to come to the city commission and justify it."

City Attorney Karen Gallagher said that the public transportation mill levy might be set by state law and the city would have little say in capping it.

Welch said the Jobs Development Authority did not receive a separate mill levy, but the city provides the equivalent of 4 mills. The money comes from the city sales tax fund.

A second reading of the 2006 budget and adoption of the ordinance providing for the budget along with the resolution raising utility fees will be held at the Sept. 20 commission meeting.

(Reporter Gordon Weixel can be reached at 701-250-8255 or gordon.weixel@;bismarcktribune.com)