The chair of Port St Mary Commissioners says planning for the next financial year has been taking place since last summer.
Dr Michelle Haywood says with no reserves, the authority has had to craft a balanced budget to factor in rising costs.
It comes as the village commissioners announced a two per cent rise in rates to take effect from April 1, up to 338 pence in the pound.
Any funds raised from the sale of Manxonia House haven’t been incorporated into the next financial year, and will instead be used to replenish reserves.
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