NEW ULM – The New Ulm City Council adopted the $29.1 million 2026 budget with a total property tax levy of $11.2 million during Tuesday’s meeting.

No changes were made to the budget or levy since the public hearing on the budget held on Dec. 2. During the hearing, it was announced that the $11.2 million levy covered 43% of the city’s budget. Another 20% of the city’s revenue comes from Local Government Aid (LGA).

This levy represents a 7.36% increase from last year. A New Ulm resident with a home valued at $200,000 can expect a tax increase of $47.01 from last year.

Councilor Eric Warmka made a motion to formally adopt the 2026 budget and property tax levy with a second from Councilor Tom Schmitz. It was unanimously approved by the council.

In other news, the council awarded the 2025 Municipal State Aid Street (MSAS) improvement project to M.R. Paving & Excavating for $339,196. This was the lowest of three bids.

City Engineer Joe Stadheim said this is a bridge repair project on the 20th South Bridge, where it connects with Highway 37 in Nicollet County. The project cost will be shared with Nicollet County and the city.

Stadheim said an underwater inspection of the bridge found significant scouring around the bridge’s first pier and footing. The contractor is looking to start the project in the summer.

The city will seek bids for the 18th Street S. storm sewer lift stage project. The council approved the plans and specifications for the project and authorized staff to advertise for bids.

The 18th Street S. lift station project is designed as a flooding prevention measure. During rain events, New Ulm is required to close the flood gates to prevent river water from coming back up on the protected side of the levee. When this occurs, the City sets up portable pumps to move snow melt and storm sewer runoff from the protected side of the levee to the river. This is done to prevent flooding of homes, businesses and other critical infrastructure from runoff. However, the pumps cannot always handle the volume of runoff. The construction of a lift station would automate the process, saving city resources and protecting infrastructure, specifically the 20th Street S. sanitary sewer lift station.

Stadheim said the city has been working to start this project for over two years. In 2023, New Ulm submitted a congressional direct spending request to fund the 18th Street lift station project. In 2024, the city was notified that projected funding was approved through a FEMA pre-disaster mitigation fund. The city officially received the grant documents for the project this year.

The FEMA grant covers $1.125 million for the project. The engineering estimate for the full project is $1.512 million. Stadheim said the city’s share of the project will be funded by its 2025 bonding.

Councilor Larry Mack made the motion to advertise for bids with a second from Councilor David Christian.