Council takes first look at budget

By CHRIS VETTER

Journal Staff Writer

NEW ULM -- City officials presented the proposed 2001 budget Tuesday that would establish a 5.23 percent increase from this year's budget.

The City Council approved the proposed budget plan at its regular meeting Tuesday and set up two public hearings in December for input. The council must approve the budget by the end of the year.

Overall, the budget would total $10.38 million, up from $9.86 million this year.

Property tax revenue would climb from $2.88 million to $3.03 million.

According to the proposal, only one new fulltime city employee -- a police officer -- would be hired next year. That officer position is dependent on the city securing a federal grant that would pay for a portion of the officer's salary.

While most areas of the budget would increase, the city's park and recreational fun would actually decrease by .67 percent.

"In view of the pending referendum to upgrade and expand the city's recreational assets through a half-cent local option sales tax, needed upgrades of existing facilities were put on hold," said City Manager Richard Salvati.

The proposed budget would earmark $100,000 for conserving the Hermann Monument statue.

The city also would place $200,000 in the "capital improvement sinking fund." Salvati explained that money in that fund could be shifted to pay for a regulation-sized soccer field or a skateboard park.

Under the proposal, fulltime employees would see a three percent wage increase. However, non-fulltime city employees would see a five percent increase, Salvati said.

"Given the fact that the city relies heavily on hourly compensated personnel, wage rates for parttime, seasonal, and temporary positions need to be kept at competitive levels," Salvati said.

The library would obtain an additional $95,000 for building improvements, including replacing the roof later this year and early next year.

Council President Dan Beranek had no comments on the budget, and said he needs to study it more.

"We need a chance to delve into it," Beranek said.

Councilor Clark Tuttle III questioned whether the council should seek the maximum levy increase to help pay for any park and recreation projects.

"We haven't looked at how we're going to fund 'Option Four,'" Tuttle said. Option Four, if approved by voters Nov. 7, would give the city money to construct a new ice sheet facility at the fairgrounds, renovate Vogel Arena and expand the Senior Center.

Tuttle is concerned that the project is still more than $2 million over budget on the drawing board.

Salvati said materials and size of the project might change to fit the project under its $9 million cap. He said some elements of the project might have to wait.

"We don't take any needless risks," Salvati said. "We have funded all (past projects) in a prudent manner."

The city took no action on finalizing which proposal it will send to voters.

In other action, the city approved a permit and liquor license for the Chamber of Commerce' Oktoberfest celebration, but rejected a request to sell pulltabs.

Terry Sveine, tour coordinator with the chamber, told councilors that the chamber has lost $8,000 over the past two years, when the organization held Oktoberfest in Turner Hall. Sveine said the chamber hopes to rebound this year by moving its Oktoberfest festivities to the downtown area.

"The beer garden, which we need, is about our only income source," Sveine told councilors.

The council reluctantly approved the permit to close Minnesota Street between Second North and Center Street. Tuttle, while ultimately supporting the permit, argued that the celebration should be held in German Park and not on city streets.

Councilor Denis Warta agreed.

"I think some serious consideration (next year) must be given to other sites beside Main Street," Warta told Sveine.

While the chamber originally planned to fence off a 'beer garden' area, those plans were eliminated when city officials said the cost for constructing and maintaining the beer garden would total $1,160. The costs include renting fencing and paying city street employees to set up and remove the fencing each day of Oktoberfest.

Sveine said the chamber has more than 300 volunteers, and he expects that volunteers will enforce alcohol laws.

As the meeting concluded, the council rejected, 2-2, the chamber's request to sell pulltabs during Oktoberfest. Tuttle and Councilor Ron Fleischmann voted against selling pulltabs. Fleischmann said pulltabs do not belong in the 'family-friendly atmosphere' that Sveine described for Oktoberfest.

"Now we've gone from pulltabs in the bar to pulltabs on the street," Fleischmann said.

Councilor Joel Albrecht was absent and did not vote.