Blue Earth lowers tax levy hike
The 4.1 percent increase will have impact of just 3.5 percent

A group of local pickleball players were at the Blue Earth City Council meeting last Monday, asking that the council consider having pickleball courts as part of their tennis court project they are working on. A pickleball player is shown above.
The Blue Earth City Council discussed, but did not approve, Blue Earth’s 2022 property tax levy at their regularly scheduled meeting on Monday, Dec. 6.
A bulk of the budgetary discussion took place at a 4:30 p.m. work session held prior to the regular meeting.
City administrator Mary Kennedy outlined the path which led the city to a proposed total levy of $1,795,033.64.
Though, mathematically, this comes to an increase of 4.1 percent over last year’s levy, mayor Rick Scholtes explained citizens will experience the effects of a 3.5 percent increase.
“It is really going to work out to be 4.1 percent when all is said and done, because we added $11,000 in property taxes for the new duplexes that were built,” Scholtes clarified. “They weren’t on the property tax rolls.”
“But, to taxpayers, it should be flat at 3.5 percent,” he added.
Kennedy explained a few details which contributed to the final sum of $1,795,033.64.
She noted a union contract negotiation between Blue Earth and Law Enforcement Labor Services (LELS), which, upon its acceptance, would mean a five percent salary increase for the Blue Earth police.
She also noted a proposed starting wage of $20.51 an hour for part-time police department employees.
Kennedy detailed a few other budget items of note in 2022.
Blue Earth’s Senior Center will receive $29,000 in funds for necessary repainting and new flooring.
“The flooring is getting a little unsafe,” Kennedy noted.
Additional budgeting tweaks include a routine three precent raise for Blue Earth’s CEDA contract, as well as an increase of $15,000 to the Housing and Redevelopment Authority (HRA)’s demolition of property budget.
Additionally, $43,000 in CAPX funds will be used to put a seal coat on the liquor store parking lot. The liquor store may also invest in new counters, but the project would utilize proprietary liquor store funds, rather than the city general fund.
The city plans to levy $950,000 to make payments on bonds. $471,500 will be put toward street improvement projects, while the remaining $478,500 will be used as non-street funds.
Finally, Kennedy clarified that American Rescue Plan (ARP) relief funds are not reflected anywhere in the proposed budget.
“That’s bonus money, basically,” Kennedy said, adding Blue Earth was fortunate to receive additional ARP funds, which were reallocated by the state when several cities failed to apply for recovery funds.
The council decided to officially approve the proposed levy at their next regularly scheduled meeting on Monday, Dec. 20.
Other business discussed by the Blue Earth City Council on Dec. 6 included:
• Blue Earth’s proposed street improvement projects for 2022, and, specifically, where their sidewalks will begin and end. Based upon community feedback at a public hearing on Nov. 1, the council passed a motion to revise plans for next year’s sidewalk construction.
Accordingly, additional sidewalk will be laid on Fourth Street from Galbraith Street to Gorman Street, on Gorman Street from Seventh Street to Sixth Street, and on First Street from Moore Street to Galbraith Street as a part of the street improvement project.
• The Blue Earth Community Library’s prehistoric plans for the future. After some discussion, the council unanimously passed a motion permitting city attorney David Frundt to work with the Library Board to draft an agreement between the library and Jim Pollard, a local resident who plans to donate a sizeable dinosaur fossil exhibit to the library.
• A community show of support for pickleball. Several Blue Earth residents attended the city council meeting to express their desire for outdoor pickleball courts in Blue Earth.
Scholtes emphasized plans for Blue Earth’s future athletic facilities are still in early discussion. However, the council took the seeming popularity of the sport, and its potential to draw people from the area into Blue Earth, into consideration.
• An update regarding the Project 3 Sisters/Rural Renaissance Project saga. At a regularly scheduled meeting on Oct. 18, the council had passed a motion which deeded three Main Street buildings to the Project 3 Sisters group, with the stipulation that the group would be unable to request funding from the city or EDA over the next 10 years.
Frundt had drafted an agreement between the city and Project 3 Sisters, which he then sent to the group’s attorney. He informed the council on Dec. 6 Project 3 Sisters has some concerns about the language of the document, and he is waiting to receive a redlined draft from the group’s attorney.
• Updates from former KBEW news director Norm Hall. Hall first introduced KBEW’s newly-hired news director, Stacy Huntington.
Hall also shared the results of KBEW’s annual You Can Make A Difference Camp Out. He reported the campers received approximately $20,000 in monetary donations, as well as donations of 2,859 food items and a trailer full of toys.
“I’d like to go on record thanking everyone in the community,” Hall said. “It’s the coolest thing I’ve had the pleasure in being involved in 25 years.”
• Approving Blue Earth Light and Water to formally engage Northland Securities as an underwriter in connection with the issuance of electric revenue bonds.
Tim Stoner, general manager of Blue Earth Light and Water (BELW), shared updates regarding BELW’s plans to build a substation, which it hopes to fund through the revenue bonds.
Stoner said the substation is now designed and ready to be built. Securing funding will accomplish the next step needed to get the substation up and running.
• Approving the LELS 2022-2024 contract, which negotiates the terms of the labor agreement between the city of Blue Earth and its law enforcement.