Budget

cuts before

council

tonight

By RON LARSEN

Journal Staff Writer

NEW ULM -- The New Ulm City Council is girding itself for a "rubber meets the road" meeting tonight when it has to decide on how deep the cuts in the 2003 and 2004 budgets will be.

Councilors were urged by department heads facing the deepest cuts to make the decision "sooner than later" at their first budget-cuts session April 1.

It was then that top city officials unveiled a "worse-case" scenario that would impact the Park and Recreation Department and the Public Library the most because "the state doesn't consider them essential services," City Manager Brian Gramentz told the councilors.

The worse-case scenario cuts were based on the governor's recommended cuts in local government aid becoming law. It would result in a loss of $1.7 million in LGA over the two budget periods.

While every department would be impacted, even police and fire, Park and Rec would take cuts amounting to nearly 25 percent of its $2.1 million 2003 budget and another 26.5 percent cut in 2004. The library's cuts would amount to 19 percent of its $635,615 2003 budget and nearly 25 percent of its projected $654,683 2004 budget.

The Police Department wouldn't get out unscathed, losing $50,000 each year.

However, City Clerk-Treasurer Gary Gleisner said the council still had options. There are certain sinking funds, as well as a retirement account, that could be tapped, Gleisner said. Also, in emergency situations, additional money could be withdrawn from Public Utilities Commission accounts.

The council also will receive a request for annexation of about 14 acres between North Garden Street and the North Highland Avenue extension north of U.S. Highway 14. The request is being made by William H. Koeckeritz, representing Sunset Properties.

The council will be meeting informally at 4 p.m. to discuss budget cutting options in the library conference room. The council's regular meeting will follow in the same location at 7 p.m.