NEW ULM — The New Ulm City Council is looking at a levy hike in 2020 to 2.64%.

The council reviewed the 2020 budget during Tuesday’s Truth in Taxation meeting.

In September, the preliminary tax levy was set at $8.02 million, 4.2% over the 2019 budget. By law, the city cannot raise the levy higher, but could reduce it.

The council reviewed items in the budget to determine if cuts were possible. The council focused on the City Building Renovation Fund, budgeted at $375,000. This fund was seen as a part of the budget that could be reduced. The councilors did not want to take money from the Fire Equipment Replacement fund or the street improvements sinking fund.

Councilor Les Schultz suggested taking $125,000 out of the Building Renovation Fund. This would leave $250,000 in the fund and bring the 2020 levy increase to 2.64%.

Councilor David Christian was willing to reduce this fund, but warned any major renovation would come out of fund balance.

Finance Director Nicole Jorgensen said at the end of 2020, the fund balance should have just under 55% reserves. It is recommended by the state the fund balance remains above 50%.

Schultz made a motion to reduce the Building Renovation Fund by $125,000 with a second from Councilor Lisa Fischer. The motion was unanimously accepted.

The final approval of the tax levy will be during the next city council meeting.

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The council voted to send the New Ulm Fire Department’s proposed by-laws changes back.

In October, the fire department passed a majority vote to change by-laws. The major change proposed by the Fire Department regarded attendance at fire calls.

The proposed by-law changes require firefighters to attend 50% of fire calls and 70% of regularly scheduled monthly department meetings, training, drills, operator meetings, and community outreach events.

Previously, firefighters needed to attend 70% of fire calls, but excused absences were allowed. Under new by-laws, a lower attendance rate was allowed, but no excuses.

The council previously considered by-law changes but tabled the decision. There was concern the new by-laws could cause firefighters to leave the department. A review board of fire chiefs and assistant chiefs could excuse an absence under extenuating circumstances.

Christian suggested the council respect the fire department’s vote and approve the new by-laws.

“If it is not working then we bring it back,” he said.

Fischer was concerned removal of excuses could hurt volunteer firefighters who have issues attending fires because of their primary employment. Fischer wanted excuses for primary work to be allowed.

Schultz said the by-laws would force firefighters to quit.

“I don’t think we can approve this and see how this goes because we’re going to lose firefighters,” he said. “Two years ago we were begging for firefighters.”

Fire Chief Paul Macho said the decision to change the by-laws was based on a letter from the state auditor. The state was requesting excuses to be eliminated from by-laws.

He said the department began discussing changes in February. After seven months these by-laws were the compromise. Macho added these by-laws allow a review board to make an exception for absences. He gave the example that if one month had an unusual number of fire calls during the daytime when members were at work, this month could be ignored.

Fischer was concerned about the fairness of a review board.

Macho said if a work clause was added, he would recommend increasing the absences rate back to 70%.

Christian asked if having the work excuse would affect the city’s audit. Macho could not say for certain.

Fischer made the motion to send the by-laws back to the fire department recommending a work clause be allowed and the absences are set at 70%. Christian seconded the motion. It was unanimously approved.

New Ulm Fire Department members are required to vote on any amendment to the by-laws before sending it to the council for final approval.

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City code was amended to allow residential uses in the B-2 (Service Business) zoning district.

The Planning Commission previously conducted a public hearing on this amendment and recommended approval. There are four half-block and two partial half-block areas zoned B-2 in the downtown area.

Recently, the city received a letter from an owner of a property in the downtown area requesting first-floor residential use in the B-2 zoning districts adjacent to the downtown area. The property owner was having difficulty leasing space for business purposes and asked the city to consider a change allowing residential use.

Community Development Director David Schnobrich said the B-3 zoned district adjacent to the service business district already allows residential units and the B-2 district has nine residential units that were grandfathered in because they existed before the code. Also, most of the land parcels in the B-2 district are currently being used for purposes allowed in the B-3 district.

“In essence what we have in the downtown area is one zoning district,” Schnobrich said, “Over the years it has become one similar land-use area.”

He believes this amendment was consistent with the comprehensive plan. A conditional use permit (CUP) would be needed before allowing a residential unit in the B-2 district.

John Covington spoke during the meeting, raising concerns about increasing traffic. He said there was high traffic in the alley off South Minnesota Street. Covington asked the city to consider the impact on parking if additional residential properties were added to the district.

Schultz said he had similar concerns as there were already parking issues.

Christian said alley traffic or parking could increase even more with the addition of a new business, which is permitted without a CUP.

Fischer said this was already allowed in the adjacent B-3 districts and this would only expand it further.

The ordinance does require minimum floor space to be reserved for businesses on the ground floor. Ground floor apartments are not allowed in the front business space.

Fischer made the motion to allow residential uses in the B-2 service business district, with a second from Schultz. The motion was unanimously approved.