City Council OKs

maximum levy

Parking lot tree

issue goes to

committee

By FRITZ BUSCH

Journal Staff Writer

NEW ULM -- In order to protect itself from what the Minnesota Legislature might do with future municipal funding, the New Ulm City Council approved the maximum tax levy allowed by law Tuesday night.

The 2003 gross city property tax levy of $3,713,182 is $644,680 or 21 percent more than the 2002 tax levy. The total levy would be $3,829,284 with $116,102 coming from special EDA/HRA and parking districts.

The 2003 budget totalled $12,744,898. Most expenditure patterns were identical or slightly elevated over last year, New Ulm City Manager Brian Gramentz told the Council.

The budget took into account the "worse case scenario" of what might happen in St. Paul regarding state funding, said Gramentz.

Councilor Clark Tuttle III asked Gramentz if the budget is flexible enough to deal with state impacts in 2003 and 2004.

Gramentz said it was, but the 2003 Minnesota Legislature could still do things that could impact the 2003 City budget.

Significant items impacting New Ulm's 2003 appropriations were:

* $275,000 for the future opening of the Community Center and Senior Citizens Center at the Brown County Fairgrounds.

* A 10.58 percent or $165,081 hike in the New Ulm Police Department budget. The increase was in part due to the hiring of an additional police investigator and purchases of a four-wheel drive patrol vehicle, K-9 unit, firearms, gun range and "bugging" equipment. Additional training allowances were also provided.

* $129,439 in transfers from principal and interest payments relating to Sales Tax Revenue Bonds.

* $111,835 in expenditures for transfers from Consolidated Police Relief Association (PERA) funds.

* A $99,000 increase in Group Medical Insurance.

* A $48,000 increase in general insurance costs.

* A $45,000 reduction in interest and investment income.

Gramentz said the amounts set for the new Community Center and Senior Citizens Center were "guesstimates."

"We really won't know what those costs will be until we've had those facilities open a year," Gramentz said.

In other action, the council approved:

* Public budget hearings at 5 p.m., Wednesday, Dec. 4 in the public library basement and, if needed, at 5 p.m., Wednesday, Dec. 11.

* An Off-Sale Intoxicating Liquor License and Tobacco License for Hy-Vee, Inc. to Hy-Vee, Inc. dba Hy-Vee Wine & Spirits, 2017 S. Broadway, for the period ending Sept. 23, 2002 and ending June 30, 2003, subject to complying to state and city regulations.

New Ulm Assistant City Attorney Roger Hippert said copies of Hy-Vee's liquor violations in South Dakota were not found to be willful and should not prevent them from getting liquor and tobacco licenses.

* Sending the City Parking Lot sign visibility issue to a committee including councilors Ronald Fleischmann and Ruth Ann Webster.

New Ulm Area Chamber of Commerce President Jeanne Albrecht wrote Gramentz and the Council a letter regarding the limited visibility of the sign due to tree growth. She suggested removing several trees on either side of the sign and planting low, flowering shrubs.

* Termination of a lease with St. Paul's Evangelical Lutheran Church to use Lots 8, 9 and the North 1/2 of Lot 10, Block 104 North as a municipal parking lot. A 30-year lease agreement between the City and church ends Oct. 31.

The lack of parking demand and short and long-term operational costs did not justify lease renewal. The city will determine a flat fee to be paid by St. Paul's for lighting the parking lot.