Mandan residents will see a slight increase in the city portion of their 2006 tax statement following commission approval of the 2007 budget on Tuesday.

On a $150,000 home, the city portion of the property tax bill will increase $12.04 over last year. This is accounted for through a modest 1.6 percent average increase in valuation.

Mayor Ken LaMont said that this year's budget "was a tough one," considering the requests coming in from the departments.

"You did a great job in attempting to find a happy medium; it wasn't easy," LaMont said.

The budget committee of LaMont, city finance director Greg Welch, city administrator Jim Neubauer and other department heads did make some changes to the preliminary budget presented last month.

The employees' committee had requested a 6 percent cost-of-living increase plus an additional 1 percent increase in the city's contribution to the pension fund. What was approved by the commission is a 4.5 percent salary increase and no increase in the city pension contribution. It was noted that through merit pay increases, an employee could see up to a 7.5 percent pay increase.

The city is looking to pick up a projected 15 percent increase in health insurance costs. Welch said that there has been no decision to cap the city share of the insurance, and the level of health insurance provided by the city is expected to stay the same.

"Health insurance is a sacred cow. It's one of the best offerings we have for city employees, and we have to keep it intact," LaMont said. "Each year, we have to look at the benefit package, and costs having been going up beyond belief."

The city also refused a request from police department officers for $50,000, which would have been used to begin a new retirement program with North Dakota PERS. Other cuts included $32,000 from capital improvements and a $50,000 transfer of funds to the fire equipment fund.

The 2007 total budget levy remained at 111.2 mills, the same as last year. General fund mills went from 94.07 for 2006 to 91.56 for 2007.

Two general fund mills were dedicated to paying of bonds, which will be sold to provide revenue for the city's portion of the new Liberty Memorial Bridge.

Welch said that the decision to sell bonds rather than to special-assess the city for the bridge was made to allow new properties coming into the community to pay their fair share of the bridge. A special assessment would have frozen the financing of debt service on existing property.

The budget does allow for transfer of $30,000 from the solid waste utility fund to the general fund to pay for 50 percent of the city's salary study.

This transfer won't be repaid. A further transfer of $230,000 will be transferred to the general fund from solid waste for capital outlay expenditures. This will be repaid over five years beginning in 2008.

Increased property values will provide $213,291 in funds over last year's total budget.

(Reach reporter Gordon Weixel at 701-250-8255 or gordon.weixel@;bismarck-tribune.com.)