SE Council OKs

'05 proposed levy

Expenses up

3.76 percent

By FRITZ BUSCH

Journal Staff Writer

SLEEPY EYE -- The Sleepy Eye City Council unanimously approved on Wednesday a 2005 preliminary budget and levy certification for taxes payable 2004.

Overall expenses climbed 3.76 percent, and the preliminary tax asking is up 6.5 percent. The 2005 proposal of $670,237 is up 5.4 percent over the past three years.

Capital expense items include a new shelter and camping improvements at Sportsman's Park, a $200,000 shift for street reconstruction, $75,000 for downtown improvements, a new fire truck, police cruiser and siren in the northeast corner of town.

Surplus funds include a $55,000 loan to the Sleepy Eye Arena Association, with $45,000 coming from true reserve funds.

The proposed levy cannot be raised, but it could be reduced for final approval at the December council meeting.

Sleepy Eye City Manager Mark Kober talked about the proposed tax levy.

"We increased taxes slightly more than we'd like to, but overall spending is about the same. We're relying less on property taxes," Kober said.

Tax increases over the past two years were due heavily to a 50 percent loss in Local Government Aid, Kober said.

The council:

* Heard the first reading of an ordinance to sell real estate at 702 Main Street East. A hearing will be held to change zoning from residential to commercial.

* Unanimously approved raising ambulance rates 2.5 percent.

* Set an audit meeting for Sept. 28.

* Unanimously approved selling the lake dredge after the project is complete. It is projected to be finished by Nov. 15. Kober said three parties are interested in buying the dredge.

* Unanimously approved sharing a snow removal contract with Brown County.

* Heard Kober detail a police chief replacement procedure. Don Mickelson will retire as of Oct. 31. His job is being advertised internally. An interim police chief may be hired before a long-term chief is hired.

* Heard Kober report on ordinances for rental housing and building standards. Similar ordinances on renting and selling real estate used in Willmar will be distributed to council members. Kober said the city is meeting with UMAS, an immigrant housing group in St. Cloud, regarding housing regulations and options.

* Heard City Engineer Dave Palm report on the Sleepy Hollow Project. Palm said he felt there is too much erosion on the back side of the Schieffert Project and said some dirt will be moved to alleviate the situation.

Palm said he is working on a best path for the proposed Sleepy Eye Lake bike trail scheduled to be built in 2007.