NEW ULM — The senior dining program lease for the Community Center’s kitchen and cafetorium could see a 3% increase from $51 per day to $52.53.

Lutheran Social Services (LSS) has leased the Community Center’s kitchen and cafetorium to make, serve on-site and deliver off-site meals to seniors. Some of the meals prepared at the Community Center are sent to other communities, including Sleepy Eye, Springfield, Courtland and St. James.

Since 2017, the city has charged LSS $51 per day to use the Community Center, which is below the cost to maintain the facility. Assistant Park and Recreation Manager Cheryl Kormann said it cost $91 per day to maintain the facility, meaning the city is subsidizing a portion of the meal program.

In addition, between 45% and 50% of meals prepared at the Community Center are taken outside of the New Ulm Community, meaning the city is subsidizing meals for seniors who are not paying taxes in New Ulm.

The general philosophy of the city is to adjust fees to account for inflation. This lease has had no increase in five years, so Park and Recreation Department staff recommended an increase for use of the park’s facility.

Since the Community Center is a parking facility, the rent increase came before the Park and Recreation Commission.

LSS Regional Manager Sarah Anderson addressed the Park and Recreation Commission at its meeting on Monday. She expressed gratitude for the use of the Community Center and said the nonprofit LSS is losing $1.25 on each meal it serves.

The full cost of each meal costs $8.75, but Anderson said there is no charge for the meals served to seniors 60 and older. A donation of $5 per meal is suggested, but no one is denied a meal for inability to pay.

LSS receives partial funding from the Minnesota River Area Agency on Aging, but this only covers a third of the cost.

The United Way also contributes to the program, but the organization has not met campaign goals, resulting in grant cuts.

Inflation has also increased food costs, but LSS cannot pass this increase on to clients.

“I am very appreciated that the city has not increased in the last handful of years,” Anderson said. “During COVID we did not shut down.”

The commission inquired if other cities had been asked to contribute to the cost.

Anderson said there was no direct request from the other cities, however, Sleepy Eye and Springfield were providing places to serve the meals free of charge.

Commissioner Leroy Flor Jr. asked how much activity would happen at the Community Center if LSS were not using it.

Kormann said in recent years, there has been the flexibility to rent the space out to other organizations that need to rent it.

Commissioner Carissa Buegler said some of the expenses to maintain the building would happen whether LSS used the building or not, but some costs, like trash pickup, are directly connected to food service.

Flor said in his years on the commission and whenever this lease fee was increased, it went up by $1 a day. He did not oppose a small increase but believed a lot of seniors relied on the program. He worried about what would happen to those seniors if the program went away.

Commissioner and City Councilor David Christian said inflation is hitting the city hard. He believed the City Council would choose to increase the program lease fee and likely more than $1.

Buegler suggested a 3% increase to rent to cover some of the inflation costs experienced by the city.

Flor agreed 3% was fair. He believed a higher increase would be too much and made the motion to increase the lease fee by 3%, which raises the cost from $51 per day to $52.53 per day. Commissioner Bev Luneburg seconded the motion, which was approved by the commission.

This recommendation will go to the New Ulm City Council for final approval. The council could accept the 3% recommendation, or set a different fee.