Council gets look at preliminary budget

By RON LARSEN

Journal Staff Writer

NEW ULM -- A preliminary 2002 city budget totaling $11,715,567 and a maximum property tax levy 6.2 percent higher than this year were accepted and established by the New Ulm City Council Tuesday night.

The council set Wednesday, Dec. 5, at 5 p.m. and Wednesday, Dec. 12, at 5 p.m., if needed, in the library meeting room as the public hearings for the 2002 budget.

The preliminary budget represents a 10.16 percent increase over the 2001 budget of $10,525.393. Impacting the new budget were about $123,000 in salary expense, $75,743 for increased group medical insurance, increased gas and electric costs totaling $79,000, $53,401 in transfers from the Consolidated Police Relief Association PERA funds, and about $564,000 in transfers for principal and interest payments relating to the sales tax revenue bonds.

The property tax levy is projected to bring in $3,182,865 which is $185,551 more than the $2,997,314 raised in 2001.

The overall levy breaks down into four categories: general tax levy, $2,327.613; special taxing districts, $113,580; special funds, $219,737; and debt service, $521,935.

"The 2002 property tax levy is $618,000 below the maximum that we could levy," City Clerk/City Treasurer Gary Gleisner.

Councilor Clark Tuttle wondered why "we wouldn't be levying the maximum in light of the changes in the property tax structure."

"I feel it would be sending a poor signal to the people in St. Paul to tax at the maximum right now," Gleisner responded.

City Manager Brian Gramentz said the situation has changed, that "we're no longer in a 'use it or lose it' situation any more. What's not spent in 2002 won't be held against us in 2003."

Gleisner also cautioned the councilors that when the levy was accepted, "we can go lower in December but not higher."

In some related tax increment financing action, the council authorized the modified development program for Development District No. 1 and the TIF plan for Tax Increment Financing District No. ED-13 and passed a resolution finding the development program and the tax increment financing plan to be consistent with the city's general development plan. The district is being set up to help finance a new manufacturing and warehouse facility for Canyon Outback Leather Goods on North Broadway.

The council also authorized its staff to review development and financing proposals involving $5.5 million in tax-exempt financing and $450,000 in TIF funds for the Housing Alternatives Development Company's development of Phase II of the Ridgeway on German Senior Housing Facilities. HADC is seeking to build a 54-unit "catered living" facility for seniors.

The city would provide a TIF Plan revision, costing $3,500 for which it would be reimbursed by HADC if it did not proceed with the project.

The council voted to join the Central Minnesota Municipal Power Agency and its subsidiary, Utilities Plus. New Ulm's public utilities have dealt with UP for several years in selling its excess capacity.

"Our relationship with Utilities Plus has always been a winner," Utilities Director Bob Stevenson said.

In other action, the council approved an agreement with The Guten Tag Haus, giving the firm permission to use a drawing of the Hermann Monument which was commissioned by the city on various products with the city getting $1 for every unit sold, and it approved a grant of up to $3,145 from the Wanda Gag Collection Fund for conservation work on 16 works of art. The money matches $2,700 being sought from the Prairie Lakes Regional Arts Council.

In the first of two informational meetings, Julie Carr and Gene Dahlke, project managers for MNDOT's Office of Freight, Railroads and Waterways, briefed the councilors on three railroad signal upgrades in New Ulm that are in MNDOT's 2002 budget.

The upgrades would be made at crossings at 3rd South St., 1st South Street and Center Street.

Carr urged the council to consider closing 3rd South at the crossing because the surface also is in bad repair and "it would be a good safety move." She suggested the money from that part of the project could be used on another crossing. The council asked what the deadline was for deciding and basically said, "we'll get back to you on that."

Dr. Laurel Gamm updated the council on the progress of the Putting Green Environmental Adventure Park mini-golf course project. She told the council the project still is scheduled for completion in summer 2003.

"We're doing this process involving kids, and that takes time," she explained.