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NEW ULM -- Lutheran Social Services' rental fee for use of the New Ulm Community Center for Senior Dining will increase by 3% in 2023.
The New Ulm City Council unanimously approved a recommendation previously made by the Park and Recreation Commission to raise the rental fee from $51 a day to $52.53 per day.
Lutheran Social Services (LSS) leases the Community Center's kitchen and cafetorium to make and serve on-site meals 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.
Originally, the city charged LSS a rental fee that matched the city expenses for use of the facility. In 2014, the LSS paid $81.55. However, the city council chose to decrease this fee to $50 in 2015. Since 2017, the city has charged LSS $51 per day to use the Community Center, which is below the cost to maintain the facility. Today it costs $92 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.
Since the Community Center is a Park and Recreation Department facility, the rent increase came before the Park and Recreation Commission last month. The commissioners felt an increase was necessary, but want to keep it small, as many seniors rely on the program. A 3% increase in rent was suggested to cover some inflation costs experienced by the city.
City Councilor David Christian is a member of the Park and Recreation Commission. He was willing to support the 3% increase and believed the increase should be higher.
During the council meeting, Christian said Park and Rec staff have recommended increasing this fee slowly, but when it reached the city council, the city was reluctant to raise the rate.
"This year, I think everyone is feeling the pain," he said. "I, myself, would like to see it go higher than 3%. I'll back it (3%) because that is what Park & Rec decided on but in my eyes, it should be higher."
LSS Regional Manager Sarah Anderson said the senior meals program is provided all over Brown County. The program receives partial government funding for the program. She estimated this covered one-third of the cost of the meal. The full cost of each meal is $8.
Since the meals are funded in part through the federal Older Americans act, they are not allowed to have a set charge for anyone 60 or older. There is a suggested donation of $5 but it is completely free will. Anderson said on average they received $4 per meal. LSS is losing around $1 on each meal provided.
Councilor Les Schultz served on the council in 2014 when the rental fee was originally reduced. He said the idea to reduce the fee was to maintain this service. The meal program helps seniors stay independent and in their homes, which benefits the entire community. Schultz remembered that the lower price was agreed on with the understanding the other communities would chip in as well.
Anderson said Comfrey, Springfield and Sleepy Eye do provide in-kind donations to LSS to operate in the communities. Senior dining meals can be served in these communities without rental costs. Anderson said that technically, these communities are donating to LSS for this meals program as their facilities require daily maintenance costs as well.
Anderson informed the council that due to inflation, the cost of food for meals has increased. Despite this increase, the suggested meal donation will remain at $5 and LSS would accept a 3% increase in fees
Christian asked if Brown County has ever donated to the program as the meal program benefits several of its communities.
Anderson said Brown County has never given directly to this program but might have contributed to the Area Agency on Aging which could have filtered to LSS.
Council President Andrea Boettger was willing to agree to the 3% increase now, but the rental situation needed to be addressed in the future.
"We cannot do this for one organization and not another," she said.
"We have to start recovering some of our costs," Schultz said. "We can't keep losing funds."
Christian made the motion to adjust the daily rental fee for LSS to use the Community Center for senior dining to $52.53. It was unanimously approved by the council.
The rental rate fee with LSS is reviewed annually.