SLEEPY EYE — Lower Medicare reimbursement for ambulance services had a lot to do with a 9.1% 2025 city tax levy hike unanimously approved by the Sleepy Eye City Council Tuesday.

Sleepy Eye City Manager Bob Elston said Medicare now pays about 38% of what it costs the City of Sleepy Eye to send an ambulance out.

“Given that and the number of ambulance runs the last couple years with 70% of our patients on Medicare, our (2025) budget has $105,950 in tax dollars for the ambulance,” Elston said.

Elston said the 2025 budget includes a 3% city employee wage hike effective Dec. 22, and a total tax asking of $1,849,700 that is $155,443 (9.1%) more than last year.

He said the city property tax hike means a $7.50 monthly city tax increase in 2025 for a home valued at $150,000 for taxes. Elston said the median taxable value of a Sleepy Eye home is $141,000.

“The median value means half of the Sleepy Eye homes are greater than the median and half of them are valued at less than the median. Taxes on a $250,000 home go up $12 a month,” he said.

“We’ve gone over this budget thoroughly. I made a motion to approve,” said Councilor Gary Windschitl. Councilor Christina Andres seconded the motion that was unanimously approved.

No public comments were heard at the Truth in Taxation hearing.