City Approves Slight Tax Hike

St. Louis Park City Council on Monday approved a tax levy that is roughly 5 percent larger than last year's, a move that will help pay off bonds on the city's .

The increase will put the city's 2012 levy at $23.8 million. It will also bring with it an expected $9 bump in yearly city property taxes for an owner of a typical St. Louis Park home, with a value near $220,000.

Those with more valuable homes are expected to see bigger tax increases. A $500,000 home, for example, is expected to see $84 more in city taxes in 2012. (For a complete breakdown of how the new levy will impact particular homeowners, see the attached chart at right and look at the "dollar change" column)

Last week, the school board approved a levy increase of its own, which will add an additional $73 on to the tax bill of the average St. Louis Park homeowner. That increase was largely a response to costs associated with asbestos cleanup after the dangerous substance was .

The city's tax increase will help pay off the debt on two new fire stations that are currently under construction. The new stations, which will cost the city about $15.5 million, are expected to open this spring.

City Approves Pay Raises

Also on Monday, the council approved a 2 percent pay raise for non-union city employees following several years with no raises.

The new rate will go into effect on Jan. 1.