Sleepy Eye Council OKs budget

Sewer study

gets approval

By FRITZ BUSCH

Journal Staff Writer

SLEEPY EYE -- The Sleepy Eye City Council approved a preliminary 2003 budget and preliminary general and special levy certification Monday night.

Total city spending would increase 14.06 percent including $300,000 earmarked for dredging Sleepy Eye Lake. Without the dredging costs, spending would increase just under .9 percent.

Earlier this summer, a dredge purchased by Brown County and the City of Sleepy Eye was parked on shore in Sportsman's Park in the northeast corner of Sleepy Eye Lake. Dredging cannot begin until the Minnesota Department of Natural Resources grants a permit and completes an Environmental Impact Statement.

At last report, the DNR and City of Sleepy Eye did not agree on how much sediment should be removed from the lake.

No major street projects are budgeted next year. The city's preliminary 2003 budget is $2,613,521, which includes a $125,000 from 2002. Last year's final figure was $2,291,606.

The proposed preliminary 2003 levy is $592,495, compared to $635,605 last year. The city tax rate was 36.992 in 2000, 39.338 in 2001, 56.292 in 2002 and 52.475 in 2003.

Earlier in the meeting, the council was presented a community development Master Plan by Sabongi Consulting of Eagan. Late last year and earlier this year, Sabongi hosted four community workshops before drawing up renovation plans for downtown, a walkway on the east edge of Sleepy Eye Lake and the Sleepy Eye Mill.

Downtown renovation included trees, bump-out curbs with benches and planters and new period street lights. A walkway was proposed between Highway 4 and the lake with street lights, benches and greenery.

Sabongi proposed renovating the Sleepy Eye Mill by turning it into an apartment and office complex with a bar and deck on the top floor.

Sleepy Eye Mayor Jim Broich said he received a call about televising city council meetings on the local public access cable television channel. Broich said he contacted Sleepy Eye Telephone Company about the issue and learned it would be expensive and couldn't be done until late this year.

"I was accused of stalling on this, but that isn't so," Broich said. "It's very expensive. Some of the parts cost $6,000 each and have to come from Japan."

The council approved:

* A resolution calling for a public hearing on the proposed adoption of a modification to the development program for Development District One and establishment of Tax Increment Financing (TIF) District No. 4. The council will meet on Tuesday, Nov. 12, to hold a public hearing at 7:30 p.m.

Sleepy Eye Economic Development Director Rob Anderson said the TIF district would raise $2.5-$5 million over 26 years. Sleepy Eye City Manager Mark Kober explained that TIF money is created by improving property and capturing the difference in taxes between the original tax amount and the higher amount after property improvement.

* A resolution to use $52,176 in remaining Sleepy Eye (formerly Petris) grant funds for borrowing leverage with the Minnesota Community Capital Fund (MCCF). Up to 10 times the grant fund amount can be borrowed from the MCCF. Money can be used for housing and private business.

* A study of sewer capitalization funds for future improvements and sewer reconstruction. Kober said the city is considering imposing a sewer-user fee to help fund sewers that will be replaced every 50 years on average.

* A liquor license application for TAKIO Inc. at the Orchid Inn, pending approval of all legal requirements.