City will set the 2022 budget | News, Sports, Jobs



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NEW ULM – New Ulm City Council will set the preliminary 2022 budget at its meeting on Tuesday.

Currently, Budget 2022 provides for a credit of $ 22,998,503 with a maximum property tax levy of $ 8.79 million.

At the August 17 council working session, the city was considering an increase in tax levies of 12.65% from 2021. However, at the time of the September 7 council working session, the increase in taxes had been reduced to 8.66%.

This reduction was achieved through a reduction in the drawdown of debt through a sale of bonds. Some funds for the repair of shelters in the park were taken from a maintenance fund. The sinking fund has been reduced and the capital improvement budgets have also been reduced slightly.

The board has expressed interest in reducing the preliminary levy to at least 6% before giving its approval.

Last year, the city approved a final 2021 budget of $ 21,729,970 with a property tax levy of $ 8,266,209. The current preliminary budget is an increase of $ 1.27 million from last year, and the property tax increase is $ 533,039. If council decides to approve this budget, the preliminary tax increase would be at least 6.4%.

Once a preliminary tax levy is set, the city has the option of further reducing the levy before the end of the year, but cannot increase the levy.

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A development agreement with Steam’s Edge Properties for land in the Airport Industrial Park at 2215 Jacobs Street will be submitted to council.

Steam’s Edge is a holding company for property and land purchases made by the Trucking Company Dayton Freight Line, Inc.

The subject property is located north of Walmart and covers 6.85 acres. The purchase price is $ 164,057. The city entered into a purchase agreement with Steam’s Edge for the property in February 2021. A condition of the sale requires Steam’s Edge and the city to enter into a development agreement for the project. The proposed project for this site consists of a 3,600 square foot office and 10,800 square foot warehouse. The facility will have approximately nine full-time positions and several part-time positions. Most positions will be drivers.

Construction of the project is scheduled for 2023 and the installation of public amenities will take place in 2022.

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Council will consider allocating the use of a parking space on the municipal lot at 2nd North and German Streets for a new transformer to adapt electrical service to Inspire Event Center.

A service request has been received by the utility electrical service for improved electrical service at the Inspire Event Center. This upgrade requires a different voltage than the existing transformer. An additional three-phase transformer must be added to this zone.

The transformer will have to be installed in the municipal lot in the 2nd North and German lot sitting north of the transformer currently serving the region. The two transformers will need to be physically connected to create a loop on the system.

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A public hearing will be held on the proposed MSAS improvement project. This project is for 20th North Street from North Broadway to Front Street and Front Street from 19th North Street to 20th North Street. It includes improvements to the roadway, storm sewer, curb and gutter, sidewalks, creation trail, boulevard restoration and street lighting.

The project is estimated at $ 1.9 million with $ 340,193 earmarked for funding the MSAS. Small urban funding is also available for $ 1.36 million.

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