NEW ULM — A preliminary budget and tax levy of $28.2 and $10.7 million respectively were approved by City Council at Tuesday’s meeting.

The $10.7 million represents a maximum increase of 7.68%. Once set, the levy increase cannot go higher than this

NEW ULM — A preliminary budget and tax levy of $28.2 and $10.7 million respectively were approved by City Council at Tuesday’s meeting.

The $10.7 million represents a maximum increase of 7.68%. Once set, the levy increase cannot go higher than this amount, but it can be shrunk. Finance Director Nicole Jorgensen said current projections show it could go as low as 4.90%.

The debt levy will also go down $190,000. It has gone down $950,000 since 2015, but Jorgensen warned that the trend won’t continue.

“We have some large projects coming up over the next few years,” she said.

One of the projects weighing on the current tax levy is a $100,000 payment toward a Street Department storage building, with another $125,000 coming in the next levy.

Councilor Dave Christian said the building maintenance fund is in great shape. He asked if money from there could be used instead of tax levy inclusion. The move would take 1% off the levy, from 7.68% to 6.68%

Jorgensen said with what’s coming in the next few years, it may not be advisable.

“I would caution you there,” she said. “With some of the park and rec buildings, the original sales tax fund is gone at this point. When the civic center needs a new roof and the community center needs a new roof, we’re going to start seeing some bigger projects coming.”

As it currently stands, the maximum tax levy increase would be on the lower end in comparison with area towns. Out of 24 towns, New Ulm’s is eighth lowest. Worthington is on the higher end with a projected 18% tax levy increase while Mankato caps the low end with a 4% increase

On the city budget, Jorgensen laid out some items to be funded. This includes another $100,000 for Hermann the German restoration project, which will start to be used now that the project has been proven feasible and supported by the State Historic Preservation Office.

The General and Park and Rec funds will also be tapped into for some projects. An Emerald Ash Borer removal program will receive $100,000 for those who seek help from the city in doing so. Dugout roofs in North Park and a Park and Rec master plan are major portions that makeup $350,000 spent from Park and Rec funds.

Councilor Les Schultz asked how much money was in the Park and Rec fund. Jorgensen said currently there is $1.7 million.

Councilor Andrea Boettger said the park and rec budget would need to be looked at in future years, as it is projected to increase significantly.

“I’ve said and I will say it again, I am so proud of our park and rec system,” she said. “But it is the highest per capita in the state. I was very glad to see some of this information coming forward tonight about potential sponsorship opportunities and support for the park and rec system because we do need to look at it; this is unsustainable.”

Jorgensen said this comes from the sheer size of New Ulm’s park system. Mayor Kathleen Backer said she agreed a hard look needs to be taken at ensuring it is sustainable.

“Going forward, looking at sustainability is our responsibility,” she said. “If it’s looking at some of our parks that are undeveloped and asking whether we have to and should be developing them, that’s realistic for us.”

Schultz made the motion to set the preliminary budget at $28.2 million and tax levy at $10.7 million, for a maximum 7.68% tax levy increase, which Christian seconded. The motion was approved unanimously.

Public hearings for the final budget and levy will be held Dec. 3 at 6 p.m. and Dec. 10 at 6 p.m. if necessary. amount, but it can be shrunk. Finance Director Nicole Jorgensen said current projections show it could go as low as 4.90%.

The debt levy will also go down $190,000. It has gone down $950,000 since 2015, but Jorgensen warned that the trend won’t continue.

“We have some large projects coming up over the next few years,” she said.

One of the projects weighing on the current tax levy is a $100,000 payment toward a Street Department storage building, with another $125,000 coming in the next levy.

Councilor Dave Christian said the building maintenance fund is in great shape. He asked if money from there could be used instead of tax levy inclusion. The move would take 1% off the levy, from 7.68% to 6.68%

Jorgensen said with what’s coming in the next few years, it may not be advisable.

“I would caution you there,” she said. “With some of the park and rec buildings, the original sales tax fund is gone at this point. When the civic center needs a new roof and the community center needs a new roof, we’re going to start seeing some bigger projects coming.”

As it currently stands, the maximum tax levy increase would be on the lower end in comparison with area towns. Out of 24 towns, New Ulm’s is eighth lowest. Worthington is on the higher end with a projected 18% tax levy increase while Mankato caps the low end with a 4% increase

On the city budget, Jorgensen laid out some items to be funded. This includes another $100,000 for Hermann the German restoration project, which will start to be used now that the project has been proven feasible and supported by the State Historic Preservation Office.

The General and Park and Rec funds will also be tapped into for some projects. An Emerald Ash Borer removal program will receive $100,000 for those who seek help from the city in doing so. Dugout roofs in North Park and a Park and Rec master plan are major portions that makeup $350,000 spent from Park and Rec funds.

Councilor Les Schultz asked how much money was in the Park and Rec fund. Jorgensen said currently there is $1.7 million.

Councilor Andrea Boettger said the park and rec budget would need to be looked at in future years, as it is projected to increase significantly.

“I’ve said and I will say it again, I am so proud of our park and rec system,” she said. “But it is the highest per capita in the state. I was very glad to see some of this information coming forward tonight about potential sponsorship opportunities and support for the park and rec system because we do need to look at it; this is unsustainable.”

Jorgensen said this comes from the sheer size of New Ulm’s park system. Mayor Kathleen Backer said she agreed a hard look needs to be taken at ensuring it is sustainable.

“Going forward, looking at sustainability is our responsibility,” she said. “If it’s looking at some of our parks that are undeveloped and asking whether we have to and should be developing them, that’s realistic for us.”

Schultz made the motion to set the preliminary budget at $28.2 million and tax levy at $10.7 million, for a maximum 7.68% tax levy increase, which Christian seconded. The motion was approved unanimously.

Public hearings for the final budget and levy will be held Dec. 3 at 6 p.m. and Dec. 10 at 6 p.m. if necessary.