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NEW ULM -- The New Ulm City Council unanimously approved resolutions Tuesday regarding non-profit contributions for the 2027 city budget and to phase out contributions to some non-profit organizations over the next two years.
The city council approved a $5,000 contribution to the New Ulm Business & Retail Association as part of the 2027 city budget, motion by Dave Christian, second by Tom Schmitz.
Contributions approved totaling $55,750 from the 2027 city budget included $22,500 for the Brown County Historical Society (BCHS), $10,000 Heart of New Ulm, $6,350 Concord Singers, Grand Center for the Arts $2,750, State Street Theater $2,375, Lind House Association $2,250, New Ulm Royalty Program $2,200, Narren of New Ulm $2,175, Bavarian Blast $1,750, Wanda Gag House Association $1,375, Southern MN Initiative Foundation (SMIF) $1,125, River Valley BMX $900, motion by Eric Warmka, second by Christian.
In addition, contributions at amounts to be determined each year as part of the annual budget were approved for the BCHS, SMIF, New Ulm Royalty Program, Concord Singers and Narren, motion by Schmitz, seconded by Warmka.
Additionally, the council approved the elimination of the contribution request process and phasing out contributions to all other non-profit organizations over two years, with the final contributions to be made in 2028, motion by Christian, second by Warmka.
A survey was mailed to the mayor and councilors for 2027 contribution input after a July 21 work session. Contribution amounts were compiled based on councilor recommendations after contribution requests were reviewed by the city manager and finance director.
The 2027 preliminary tax levy will be set at the Sept. 15 city council meeting. It is possible to lower the levy amount after that date but it can't be increased after Sept. 30,.
The council unanimously approved the Aug. 4 sale of $2,050,000 Series 2026 General Obligation Bonds at a $4.419% true interest rate to finance various municipal street, alley and airport improvements, motion by Christian, second by Warmka.
The city council received notification that Moody's Investors Services assigned an Aa2 bond rating to the City of New Ulm General Obligation Bonds, Series 2026. The city has received an Aa2 rating since 2010 when it was upgraded from an A1 rating. Moody's cited the City of New Ulm's high available fund balance liquidity ratios, moderate leverage and fixed costs as credit strengths, said City of New Ulm Finance Director Nicole Jorgensen.
A public hearing for the 2027 Municipal State Aid Street (MSAS) Improvement Project on North Garden Street to 5th North Street was approved for 4:30 p.m. Sept. 1.
The city council directed staff to proceed with the project estimated to cost $5.6 million. It will include reconstructing Garden Street to be 44-feet wide with 12-foot traffic lanes and 10-foot parking lanes from 2nd North Street to 5th North Street. Curb extensions will be included at 2nd North and 3rd North with a mini-roundabout at 5th North Street.
A project feasibility report will be delivered at the Sept. 1 city council meeting. The $1.9 million local share of the project will be funded with MSAS funding, PUC Infrastructure Funds and 2027 Bond Funds.