Mandan residents will see modest increases in their city property tax along with increased utility charges, following the city commission's approval of its 2008 budget on Tuesday.

On an existing home valued at $150,000, the city taxes will amount to about a $19 increase over last year.

The commission also approved utility rate increases. The residential water rate will go up 35 cents per 100 cubic feet used. A household that uses an average of 1,000 cubic feet per month will see a $3.50 increase. There also is a 15-cent increase per 100 cubic feet in the water distribution rate and residential customers who average 1,000 cubic feet per month will see a $1.50 increase.

Sewer rates will go up 20 cents per 1,000 cubic feet or about $2 a month for the average customer, according to finance director Greg Welch. The total increase on the monthly water bill will be about $7 or $84 a year.

The utility rate increases were made to fund improvements to the water and sewer systems. A $4.2 million water plant project is planned, the water distribution system will get a $1.8 million upgrade, and $1.3 million will be spent for sewer plant improvements.

The city also is increasing its street light charge by 50 cents per month, which will cover electricity increases and community growth, vehicle replacement and replacement of wooden poles.

Welch told commissioners that the most challenging part of this year's budget was the impact on the utility rates.

City employees can expect a 2.5 percent cost of living adjustment in their salaries and, with performance-based merit raises, could get up to a 3.7 percent raise. The city intends on picking up 100 percent of the increases in health insurance premiums. A single policy went up 21.8 percent on June 1 of this year and a family policy increased 18.9 percent. The city will expend a total of $6.1 million on salaries and benefits in 2008, about 27 percent of its total budget expenses.

The budget does reduce the number of mills levied by 4.62, but with an average increase of 7 percent on properties, the city will realize an increase in the number of dollars it collects in the amount of $193,000.

The city does transfer 40 percent of its sales tax revenues into the general fund to provide a form of tax relief. Nearly $600,000 in sales tax will be transferred.

The city does have $6.1 million in debt service accounting for 27 percent of the budget, while total capital outlay is 23 percent of the budget at $5.2 million matched by operations and maintenance at 23 percent.

Property tax revenues account for 15 percent of the total budget revenues, while 31 percent is charges and rates for water, sewer and solid wastes and 21 percent comes from special assessments.

Commissioner Tim Helbling did challenge the need of a sewer jetter truck, estimated at $220,000. He said the current truck has few hours and is not ready to be replaced. Utilities director Jeff Wright said the truck was purchased in 2000 and was on track to be replaced. Wright convinced the commission to leave the truck in the budget, though the city might not replace it.

The city will increase the rates it charges Missouri West for water by 31 cents per 1,000 gallons, and will increase its industrial waste water charge by 15 cents per 100 cubic feet.

The commission vote was unanimous in adopting the 2008 budget.

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