State Representative Bjorn Olson visited the Blue Earth City Council meeting this past Monday and gave the council members an update on legislative issues. Rep. Olson also said he would work with the council on any projects they would have that could qualify for state funding. When asked about LGA payments, Olson said they were a priority at the legislature.

After several months of holding work sessions devoted to the 2025 budget and levy, the Blue Earth City Council voted to approve both the 2025 budget and levy during their meeting on Monday night, Dec. 16.

The council had first held a work session before the meeting devoted to a look at the budget and levy, with four different possible property tax levy increases, ranging from a high of 24.25 percent to a low of a 10 percent hike.

In each of the four cases, the proposal had the city drawing from reserves in order to keep the levy increases from being even higher. At the 17.05 percent increase level, the reserve draw would be $780,259. The expected reserve balance in 2025 is expected to be $3,484,135 at that 17.05 percent levy increase level.

In the end the council voted to approve the levy increase at 17.05 percent. The amount of the levy is $2,308,000, which is $335,373 more than 2024’s levy amount of $1,967,000.

The council also learned that the levy increase will have more of an impact on commercial property than on residential, partially due to the increase in commercial property valuations.

Business owners Ryne and Morgan Meyers, owners of Ryno Repair, were at the meeting to question the large increase in their proposed property tax.

“We are new business owners and we put a lot into this business,” Morgan Meyers told the council. “We have a tight margin and our property taxes are going to double.”

Mayor Rick Scholtes said the increase is due in a large part by the increased valuation of the commercial buildings. He suggested the couple attend the Board of Review and Valuations meetings in April as that is where a valuation can be lowered.

“You can also go to the county assessor’s office and discuss this with Brady Rauenhorst, if you feel the valuation is too high,” Scholtes said.

The City Council had also been studying a new Cannabis Ordinance for several months during work sessions and at council meetings.

At Monday night’s meeting the council had a second reading of the ordinance and then voted unanimously to approve the ordinance.

They also had to approve two other ordinances that had to do with the new Cannabis Ordinance. One had to do with adopting a new zoning code and the other dealt with the title of Chapter 4 of the Zoning Code as it will now have the Cannabis Ordinance included.

One person was at the meeting and read a letter to the council concerning the new ordinance.

Kaley Hernandez thanked the council for creating the ordinance but had some suggestions for changes, which included the set back area for businesses from schools.

Currently the ordinance lists 700 feet as the distance from any schools, but Hernandez suggested going to the maximum which is 1,000 feet.

She also suggested limiting hours of operation.

The council said they could change the ordinance later if an issue arose.

In other business at the meeting, the council:

• Heard an update on the state legislature from state Representative Bjorn Olson.

Olson explained that while the state has a surplus this year, they will have a large deficit in the following years.

Olson was asked about LGA (Local Government Aid) and he said funding for cities and school districts remains a priority at the legislature.

He was surprised to learn that Blue Earth’s LGA had only increased by about $2,500 for this next year.

• Approved a motion to cancel a purchase agreement to sell a lot on Prairie Rose Drive in the new Prairie View Addition.

City administrator Mary Athey said it was the party that first wanted to purchase two lots, then changed to one lot, and now they did not want to even buy the one lot.

• Voted to approve a Joint Powers Agreement between the Blue Earth Police Department and the South Central Minnesota Computer Consortium.

Police Chief Tom Fletcher told the council this is required each year by the consortium, but it will not be required from now on.

• Approved an agreement with Bolton and Menk for general engineering services.

• Approved an application for Deferment of Special Assessment Due to Undeveloped Parcel. The lot is located on west 10th Street.

City engineer Ben Rosol explained that when the city is doing a street/utility project that it is common practice to stub in a water and sewer line to a vacant lot if the lot is large enough to have a home built on it sometime in the future,

• Accepted a letter of resignation from part-time library employee Deborah Soria. City administrator Mary Athey said her position would not be replaced.