Albert Lea city councilors are expected to consider a 2 percent preliminary tax levy increase Monday night.

Albert Lea City Manager Chad Adams said the operating tax levy is increasing by slightly more than 2 percent, while the debt service levy is projected to decrease.

The increase is expected to cover compensation costs, cost of living and insurance increases and utilities costs.

Taxes on a home valued at $100,000 would increase by $5.12 under the proposed levy.

The meeting begins at 7 p.m. Monday at City Council Chambers.

Adams said the operating tax levy has not increased in six years, adding the levy could decrease before the final levy is set in December.

The city will not be allowed to increase the levy once the preliminary levy is established.

Adams said the city’s tax base has grown 4 percent since last year, which could result in tax decreases for residents. He said he is pleased the levy increase is not above the cost of inflation.

A public hearing on the levy is scheduled for Dec. 10.

The Albert Lea Housing and Redevelopment Authority tax levy is not expected to increase.

Second Ward Councilor Larry Baker and 1st Ward Councilor Rich Murray emphasized the tax will be preliminarily set.

Baker added the city has tried to keep taxes low while completing capital improvement projects with a road funding shortfall.

Murray said he hopes the preliminary tax levy decreases before December.