City budget

up 5.23

percent

for 2001

By CHRIS VETTER

Journal Staff Writer

NEW ULM -- The City Council examined the preliminary 2001 budget Tuesday night during its truth in taxation hearing. It will vote on the final numbers on Dec. 19.

Under the proposal, the budget will be $10.37 million, a 5.23 percent increase above the 2000 budget.

Property taxes comprise 29.2 percent, or $2.99 million, of the overall city budget. State aid generates 34 percent, and the remainder comes from service fees, special assessments and Public Utility Commission transfers.

Gary Gleisner, city treasurer, went through the 40-page budget, line by line, with councilors for more than two hours, explaining appropriations and detailing changes to the plan since the budget was first unveiled in September.

The largest change in the past three months is an addition of $150,000 to the capital improvement sinking fund. The incoming money is a result of a larger revenue stream from the Public Utilities Commission, said Council President Dan Beranek.

"We get 5 percent of (the commission's revenues," Beranek explained.

Gleisner said the higher cost of gas and electricity has resulted in more revenue for the commission, thus more money for the city.

The capital improvement sinking fund currently has about $2 million, which can be used for a variety of projects like Hermann Monument restoration or a skate park.

"It's to fund future projects," Gleisner said. "We want to enhance the balance of that account. It allows us more flexibility in the future."

Breaking down the costs, an average homeowner (house valued at $83,300) will pay $387 a year for city expenses. An average homeowner pays $48 for city administration, $59 for police services, $26 for the library, $27 for parks and $12 for the pool.

Councilors were impressed by a graphic that shows the city budget is smaller than the 1986 budget when adjusted for inflation.

"That's pretty significant when you compare what we had then and what we have today," said Councilor Clark Tuttle III.

The updated preliminary budget does not address plans for adding a new police officer. The September budget included funding for a new officer, but those numbers were based on the city obtaining a federal grant.

However, the city did not receive the grant, leaving the plan to add an officer in limbo.

Beranek said the personnel committee has not yet met with the Police Chief Howard Zins about whether to add a new officer this year.

Tuttle noted that the city has already set aside the money for a new officer within the budget.

"If we don't hire a full-time officer, we will have extra money in this account," Tuttle said.

Councilor Ron Fleischmann was disappointed the budget does not include more money for maintenance of the Glockenspiel. The budget includes $5,000, which is the same amount as 2000.

"It's been forgotten for years," Fleischmann said, noting that the bells either do not ring properly or are off-key.

"We get busloads of people who come to town just to see it," Fleischmann said. "We've got to maintain it."

The budget features $100,000 for Hermann Monument restoration and $95,000 for overhauling the library roof.

Outside of the possibility of hiring a new police officer, the budget does not call for adding any new full-time city staff.