The city of Mexico is proposing a bump in the tax levy rate of about a penny per $100 of assessed value after property values fall.

According to the numbers provided to the city by the Audrain County Assessor’s office, the value of property in Mexico declined by more than $2.6 million from fiscal year 2022 to 2023. The property was assessed at about $175.2 million in 2022 but dropped to just under $172.5 million.

The city’s parks and recreation and health levies max out under the proposal. Both funds were close to the maximum allowed. Overall the city’s tax levy is expected to increase from $0.73 per $100 of assessed value to $0.74. City Manager Bruce Slagle told the city council at a meeting on Aug. 14, the city has been operating under the same levels for the past several years and residents are getting good value.

“I think at that rate that’s pretty good for the services you get,” Slagle said.

The city has 84 full-time employees and has positions to fill in every department, especially public safety. The Mexico Public Safety Department (MPSD) is down six employees but could be adding two more officers shortly.

“Are applications are very low,” Slagle said. “Just to see 20 or 30 applicants or more for one job we’re lucky to see just one or two.”

Parks and Recreation Director Chad Shoemaker said his department can have difficulties hiring because of skills and certifications that are needed for some jobs. For MPSD it’s even tougher. The city has started reimbursing officers for academy training which can cost $5,000 and it could take up to a year to get that officer on the street. MPSD Chief Bryce Mesko said last year’s raises helped a lot.

“What you guys did last year did stop some of the bleeding,” Mesko said.

Most city workers will see a cost of living increase of 2.5 percent along with some other raises to get the city more in line with what other municipalities are offering. Last year the city made some changes to salaries to help with the staffing situation.

“There were a lot of years we couldn’t really afford much so we were well below a lot of others,” Slagle said.

Slagle said staying competitive is something that has to be reevaluated almost every year.

“What happens is we increase to what we felt was average last year to be competitive,” Slagle said. “Then of course other cities take our numbers and they increase, and so on. We’re about average is all I can say.”

Slagle said the city’s insurance rates will go up but just how much is still an unanswered question. Slagle said city staff is working with insurance brokers to get an answer. Slagle said they are anticipating a 20 percent increase.

“We’re making our best guess on what they’ve told us,” Slagle said.

The city is also anticipating an increase in its sanitation rates. The current deal runs through next March and the city has already started advertising for bids.

“We’re trying to be careful where we’re at with that,” Slagle said. “We won’t know until the contract is negotiated.”

The Mexico Public Schools held a hearing on its tax rate last week and approved the new number with a 6-0 vote on Aug. 15. The 2023-24 year rate will remain steady at 4.6191 per $100 of assessed value.

Most of the rate goes towards the operating fund which is at 3.75 per $100 of assessed value. The district will keep the debt service levy at 0.8691. District Director of Business Operations Stephanie Norris told board members the district is in a good financial position.

“Right now it’s figuring that we can raise our debt levy,” Norris said. “ We have no reason to raise our debt levy because we have what we need right now to pay what we have. We also have enough to do more bonding if we would like.”

The district has no current plans or projects it's working on that would require action by voters to approve a bond.