St. Paul leaders may raise the city's property tax levy by up to 3.7% for next year, but homeowners may still see their bills decrease slightly.

The City Council on Wednesday unanimously voted to set its maximum levy limit — the total amount the city can collect in property taxes in 2024 — at $208 million.

While that marks a roughly $7 million overall increase from this year, homeowners may see a bit of relief on the city portion of their taxes. Since the assessed value of commercial and industrial properties are increasing at a faster pace than homes in St. Paul, those building owners will take on a larger slice of the tax pie.

The owner of a median-value home in St. Paul, amounting to about $267,400, would see a city property tax bill of $1,254 in 2024 — down $26 from this year.

"We will continue to look for a path to reduce the levy and the impacts on our community members, while continuing to invest in the goals and values of the city," Council President Amy Brendmoen said Wednesday.

The council can approve a tax levy lower than 3.7% but can't go higher than that. It's slated to approve a final budget in early December.

Some St. Paul property owners are still reeling from this year's nearly 15% levy increase, which was fueled by a combination of inflation and a shift in how the city pays for street maintenance.

When Mayor Melvin Carter unveiled his $820 million spending plan in early August, he said his proposed levy hike would have been double if not for the Legislature, which increased St. Paul's local government aid by $8.8 million.