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Sleepy Eye City Council OKs preliminary levy

9.59% hike can\'t go any higher

By Fritz Busch 3 min read

SLEEPY EYE – The Sleepy Eye City Council unanimously approved a 9.59% 2027preliminary levy hike Tuesday.

“It could be reduced, but it can’t go up,” Sleepy Eye City Manager Bob Elston said.

“We’ve studied this for many hours to get to this point,” Councilor Gary Windschitl said.

The $193,894 preliminary levy hike would raise city property taxes by $10.40 a month or $125 a year on a home valued at $175,000 and $17.50 a month or $210 annually on a home valued at $275,000. The preliminary levy includes $83,000 more for the police department and $111,000 for parks and recreation. It compares to a $290,150 levy increase for 2026.

Preliminary levy approval came on a motion by Councilor Windschitl, seconded by Scott Krzmarzick. 

A Truth in Taxation hearing was approved for the Dec. 8 city council meeting.

The city council unanimously approved a resolution calling for a public hearing on a tax abatement at the October city council meeting for the city to issue debt for future recreation projects.

“Projects include pool repairs, resurfacing the bike trail and new playground equipment,” Elston said.

The city council unanimously approved a $263,450 low bid from Global Specialties for swimming pool repairs including cracks and plaster work. Horizon Pools bid $273,720 for the repair project. Action came on a motion by Councilor Doug Pelzel, seconded by Nate Stevermer.

The Sleepy Eye Water Park swimming pool was closed for about 10 days in early June after a water leak was discovered. 

Elston told the city council in June that two spring-loaded valves at the bottom of concrete boxes normally closed to relieve ground water pressure that builds up under the pool caused a water leak that was noticed before the pool opened for the season. Two new valves were installed by city workers that reduced but did not eliminate the leak.

A $34,980 bid from Summit Infrastructure for manhole lining work with non-porous epoxy under Cedar Street was unanimously approved. 

Elston explained why the work needed to be done.

“We had some manhole deterioration under Cedar Street. Sewer gas from Essig comes into town and eats away the concrete,” he said. “The last time we looked at rehabilitating the manholes, costs were in the $75,000 to $80,000 range. Now we can line the same four manholes with this (epoxy) product for about $35,000 that will hopefully give us a number of years of life. Otherwise, we’re looking at digging them out and replacing them at a considerably higher cost.”

Sleepy Eye Public Works Director Mike Hardin said he’s seen the epoxy product before and said it appears to work well.

“Structurally, they (manholes) are sound. This is a good option to deal with (sewer gas) issues,” said Commissioner Windschitl.

Action came on a motion by Commissioner Nate Stevermer, seconded by Krzmarzick.

Sleepy Eye City Engineer Matt Miller said lead water service line replacement bids were opened last Thursday and five bids ranged from $485,400 to $778,600. He said Castrejon, Inc. of Blaine had the low bid for the Sleepy Eye Public Utilities Commission project.

“The company owner told me they are doing a significant number of lead water line replacements in the Twin Cities now,” Miller said, “It sounds like they’re pretty experienced with these projects.

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