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City Council sets 2018 levy increase at 5.5 percent

NEW ULM — Tuesday night the City Council set a 5.5 percent preliminary tax levy increase for 2018.

By setting the preliminary levy increase at 5.5 percent, the council has established a maximum increase. By law the city cannot increase the 2018 property tax levy beyond that. The council could choose to reduce this tax levy between now and December.

At the start of the discussion Finance Director Nicole Jorgensen said the city received a substantial increase in local government aid (LGA). The city received nearly $60,000 in additional revenue from the state. However, health insurance increased by 12 percent, which amounts to $157,000 in additional expenses.

Jorgensen said most of this increase is due to additional staffing in 2018, with the addition of an assistant manager position and police investigator. Personnel services increased by $494,011 through a 2 percent wage increase to staff.

Councilor Les Schultz pushed for the council to keep the preliminary increase at 5.5 percent to avoid a controversy from last year.

In 2017, the council was criticized for setting a 21.41 percent preliminary levy increase. The council never intended to pass a 21 percent increase and ultimately cut it down to three percent, but some residents felt this was an attempt to make any increase tolerable.

Schultz admitted setting a high preliminary tax hike last year was a mistake and he would not support that decision again. He made the motion to set the preliminary levy increase at 5.5 percent to force the council to look closely at the budget.

The council unanimously approved the motion.

The public hearing on the final tax levy is scheduled for 6 p.m. Tuesday, Dec. 5, with a possible continuation on Tuesday, Dec. 12.

Trail land negotiation re-authorized

By a four-to-one vote, the council approved plans to re-authorize negotiations between Farmers Coop of Hanska and Klassen Plumbing & Heating for land acquisition or easement for a non-motorized trail along the Minnesota River between Park Street and 3rd North Street.

The plan is to create a trail between Park Street and 3rd North Street along the river. Before construction can begin the city needs to acquire land or an easement from Farmers Coop of Hanska and Klassen Plumbing & Heating.

The Park and Recreation Commission recommended the project back in 2008. Some of the initial planning went into effect, which included a Minnesota Legacy grant application. New Ulm was awarded a $100,000 Legacy grant, but no land or easements were obtained prior to the project deadline and the funds were returned to the state.

The trail project is still viewed as a regionally significant project and would likely still be eligible for a Legacy grant if land acquisition or easements were obtained.

Park and Recreation Director Tom Schmitz said the land needed for the project would cover two blocks and require a 12 to 15 foot right-of-way.

Councilor David Christian favored reopening negotiations as the city had nothing to lose from moving forward. If the other parties were willing to sell the land or grant an easement, the grant would still need to come back to the council for final approval.

Christian made the motion to re-authorize the negotiations.

Council Chair Charles Schmidt was against the project. He viewed this segment of trail as a waste of money that could be better spent elsewhere in the parks system.

“There is nothing there. It’s just a dirt trail,” Schmidt said. “We haven’t done anything with Minnecon and you are tying up Riverside Park with something that’s not worth it.”

Schmidt felt sidewalks and renovations to the building in Riverside were a greater priority.

Schmitz, the parks director, said the hope was to connect other trails in the parks system. Other possible sections include adding a trail to the top of the Minnesota River bern on the south side of town.

The council ultimately voted to approve negotiation efforts with Schmidt voting against.

Other News

• The council approved funding a request from the New Ulm Fire Department (NUFD) to fund activities associated with the department’s 150th anniversary. The NUFD will celebrate 150 years in 2020. In preparation for events honoring the sesquicentennial, the department wants to produce a series of items commemorating the milestone. These items would include steins and footed pilsner glasses. The NUFD also plans to finance a video produced by Flying Buttress. This video would also serve as a firefighter recruitment video.

The council unanimously approved the request for $15,000. The sale of items produced is expected to offset this upfront expense. Christian acknowledged a similar arrangement was made by the council during the NUFD’s 125 anniversary celebration.

• A noise variance was passed to allow live bands to perform in the Green Mill and Best Western Plus parking lot during Oktoberfest the first two weekends of October. The approval was granted following a public meeting. A similar request was made last year and was granted.

• A second public hearing was held to discuss the final plat for the Milford Heights Second Addition. No comments were received and the final plan was approved. The property owner S & P Development requested a total of 9.84 acres be platted in preparation for the construction of new row homes and twin homes.

The council accepted recommendations from the Safety Commission for modifications of on-street parking restrictions and signage on 6th North Street between Washington and State Streets and on Washington Street between 5th and 7th North Street. Most of the requested modifications are meant to accommodate traffic flow and parking issues near the complex.

The Airport Commission has previously recommended an update to the Airport Master Plan, Airport Layout Plan and zoning. To begin the update the council approved a $289,772 contract.

The council accepted a federal grant for this at their previous meeting, which will fund 90 percent of the work on the update. Following further grants from the state the city is expected to pay $24,000.

Later in the meeting the council passed a resolution establishing a Joint Airport Zoning Board to facilitate a zoning update.

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