NEW ULM — The New Ulm City Council will vote to formally adopt the final 2020 budget Tuesday. The budget is $24,001,621 with a total property tax levy of $7,896,725.

During the budget public hearing on Dec. 3, the council made a change to the building renovation fund to reduce the tax levy by $125,000. No other changes were made to the preliminary budget adopted Sept. 17.

With the changes in place the gross property tax levy, including all special levies, is $7,896,725, which is an increase of $203,198 or 2.64% increased from 2019 gross property tax levy.

The city tax capacity increased by roughly 2.06% from 2019 to 2020. Due to this increase, the actual impact of the levy is an approximate 0.70% increase in the city tax rate. A taxpayer with no change in their estimated market value would see a slight increase in the city portion of their property taxes.

• A contract award will come before the council to provide professional services for the Palmer Avenue Roadway and Utility Extension.

This service is related to the Minnesota National Guard Filed Maintenance Facility. To serve this development, the city will need to extend the water main and sanitary sewer main and construct roadway improvements along Palmer Avenue from the roundabout at US Highway 14.

The lowest bid for the contract is $34,793 from ISG, Inc.

• The council will consider wage adjustments. The recommended wage adjustment for non-union, part-time and full-time employees is 3% effective, Jan. 1, 2020. The recommended wage adjustment for the American Federation of State, County and Municipal Employees (AFSCME) and the Law Enforcement Labor Services (LELS) is also 3%.