NEW ULM — The New Ulm City Council adopted 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 these changes in place, the gross property tax levy for 2020 is $7,896,725 and a City of New Ulm Net Property Tax of $7,739,725. This 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.

Councilor Les Schultz made the motion to approve with a second from Councilor Lisa Fischer. The levy was unanimously approved.

In other business:

• Wage adjustments for non-union, part-time and full-time employees were approved. The adjustment is a 3% increase effective, Jan. 1, 2020.

The council discussed options for holding a performance review for the city manager. The evaluation was off-set because City Manager Chris Dalton has not been in the position a full year.

The council will discuss a routine for the review process during their January work session.

A wage adjustment for the Law Enforcement Labor Services (LELS) was also approved at 3%.

The council was set to approve a 3% increase for the American Federation of State, County and Municipal Employees (AFSCME), but this was pulled from the agenda due to a last-minute change to the contract.

The city learned before the meeting that Minnesota’s statute requires city employees to take President’s Day off. This holiday was not part of labor negotiations. The city had recently given employees the Friday after Thanksgiving off and now is required to add another holiday.

To bring employee holidays back to the previously approved numbers, the council prefers to remove Good Friday as an employee holiday.

“We’re not taking anything away, we’re just flipping,” Schmitz said. Overall, employees did receive an extra holiday this year.

• The council unanimously awarded a $34,793 contract to ISG, Inc 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.

ISG, Inc. provided the lowest bid for the project.

• The Council approved the renewal of gravel pit licenses for M.R. Paving & Excavating and Haala Real Estate for 2020.

Councilor Lisa Fischer asked about the work conducted at the Reinhart pit at Boundary and 23rd North Street. Fischer reminded the council last year this pit would only be mined for two weeks before being finished. She wanted to ensure there was a plan to close it.

Matt Mathiowetz of M.R. Paving & Excavating confirmed all mining at Reinhart had concluded in the fall. He said the company is meeting with Bolten & Menk to go over reclamation plans.

“It was a curtesy to get the mining permit one more time so people knew there was an activity,” he said.

Mathiowetz said the Haala parcel at West Garden Street is entering the final year of mining sand. Further site development could follow, but mining is expected to be done by fall 2020.

• The New Ulm Police Department was approved to purchase two 2020 Ford Explorers from Chuck Spaeth Ford for $74,000.

Police Chief Dave Borchert said Chevy was unable to provide quotes at this time and Dodge Dealers were unable to provide the necessary specs.

• A total of $91,500 in donations was accepted for the Park and Recreation Department. The largest donation was $65,200 cash from Barbara Haroldson for the second half of the Splashpad.

The residents of City Center Apartments gave $4,150 cash donations to the German Park Amphitheater project. E. Jay and Ellen Vancura gave $20,000 in cash to Amphitheater and $2,000 from Joan Krikava and James Bodine.