City Council - Regular Meeting

Good afternoon. It is 4.30 p.m. on Tuesday, August 4th, 2026. We'll call a City Council meeting of the City of New Orleans to order. The first item of business is the Consent Agenda. Councillors, what are your wishes?

I so move. Second. Thank you.

Motion and a second. Any further discussion? Those in favor, signal by saying aye.

Aye.

That motion does carry. Item 2.1 is a public hearing on Vacation Street Right-of-Way. We have Mr. Schnoebrich.

Madam President, members of the City Council, we have received a petition to vacate 11th North Street from between North Front Street and the Dakota Minnesota Eastern Railroad right-of-way. The petitioner IS ROBERT BERNICK. HE IS PRESIDENT OF RBNU LLC. THAT PARTICULAR FIRM OWNS THE PROPERTY ON THE NORTH SIDE OF 11th NORTH STREET. HE, HOWEVER, IS THE ONLY SIGNATOR TO THE VACATION PETITION. AND AS A RESULT, HE WILL ASSUME RESPONSIBILITY FOR ALL RELATED VACATION COSTS. If both the budding properties had signed the petition, the costs would have been split equally. The owner of the property to the south is Schaefer Well Company Incorporated, and since they did not sign the petition, they have no responsibility for any of the costs. They, however, do receive half of the vacation area if it's approved by the city council. THE CITY CHARTER REQUIRES AN ABUTTING PROPERTY OWNER TO PETITION FOR THE VACATION, AND MR. BERNICK'S SIGNATURE SERVES THAT PURPOSE. THE LAND AREA PROPOSED FOR VACATION TOTALS APPROXIMATELY 13,200 SQUARE FEET. NOTICE OF THE VACATION REQUEST WAS PROVIDED TO THE THREE ADJOINING PROPERTY OWNERS.

that abut on 11th North Street.

Staff would recommend approval of the vacation for the following reasons. One is that city and public utilities commission departments, local communication companies, and abutting property owners have no objections to the vacation. Two, this segment of 11th North Street has not been improved and serves no constructive purpose as a street three there is an area in which street segments have been vacated with no adverse impact on the ability to develop or access property. For the segment of 11th North Street from the DM&E Railroad to North Valley Street, so we're on the other side of the railroad now, was previously vacated and a residence is located on this property. CONDITIONS WOULD BE TO PAY OR PREPARE A VACATION PLAT AND FILE THE PLAT AND AUTHORIZING RESOLUTION WITH THE BROWN COUNTY RECORDER'S OFFICE. TWO WOULD BE TO PAY THE VACATION APPROVAL FEE OF $1,810 AND THREE WOULD BE TO PAY THE APPLICATION FEE OF $250. AND THAT WOULD CONCLUDE THE STAFF REPORT.

Thank you, Mr. Snowbrick. The public hearing is open at this time. If anyone cares to be heard, please state your name and address for the record.

I'm not seeing anybody coming forward to speak on this, and we've done this in the past, so I'm going to offer a motion to close the public hearing, offer a resolution approving with conditions the vacated right-of-way described as 11th North Street, located between North Front Street and Dakota-Minnesota Eastern Railway right-of-way. Second.

We do have a motion and a second. Any further discussion? I will abstain just because Schaefer Company's involved in this as well. Director Jorgensen, please call the roll.

Councillor Christian. Yes. Councillor Wormack. Yes. Councillor Schmitz. Yes. And Councillor Mack.

Yes. That motion does carry. Item 3.1 is reports from officers, boards, and commissions.

Well, I can just add our sister city's exchange student is finally here. He got here last Monday, and he started his job at the New Orleans Country Club.

We did these reports last meeting. The only thing on this is the ordinance.

Oh, well, there we go. So I guess ordinance number 2026-TBD, first consideration amending Appendix A of the city code.

I'll make the motion to conduct the first consideration of ordinance number 2026-TBD amending Appendix A to the New Ulm City Code to amend the R3 medium density residential district development standards. Second.

We do have a motion and a second. Any additional discussion? Those in favor signal by saying aye.

Aye.

That motion does carry. But thank you for your update, Council Member Mack. Under new business, item 4.1 is the 2026 sale of series 2026 bonds.

Do I start? Nicole, did you have anything to say? Do you just want me to start? Just go ahead.

Okay, great. Sorry. Madam President, members of the council, thanks so much for having me here. My name is Heather Casperson. I'm with PFM Financial Advisors. We are the municipal advisor to the city, and my predecessor, now retired, John Burmeister, is in the audience. So you should have in your packets a memo outlining the results from the sale this morning. We had bids come in at 10 o'clock. And the original par amount of the bonds was $2,280,000. And eight bids were received this morning for the bonds, which is fantastic. There is a 32 basis point difference between the best bid received and the highest bid received. These bids are reflective of the city's AA2 Moody's rating. The low bid is TD Financial Products, LLC, and the yields that they submitted this morning are indicative of the AA2 rating as well as current market rates. After the bids were taken, we resized the bond issue so that we make sure that you only get the amount of money that you need to finance the projects. And based on the bid received, we were able to reduce that power amount from that $2,280,000 to $2,050,000. And therefore, the price that the purchaser will pay changed to $2,212,125.18, and the true interest rate also was modified slightly to 3.419%. So it would be our recommendation that the city pass a resolution that is before you to accept the low bid from TD Financial Products and authorize any further action in connection with the issuance of this bond issue. I'm happy to answer any questions. Thank you, Ms. Casperson.

Just a repeat now, so it's not the 2.28, it's... 2.050, 2,050,000. I'll offer the resolution authorizing the issuance, awarding the sale and fixing the form and details for $2,050,000 general obligation bond series 2026 and authorize the mayor and finance director to execute the bond documents on behalf of the city of New Ulm to finance various municipal street alley and airport improvements. Second.

We do have a motion and a second to any further discussion. I would just like to wish you well on your retirement and thank you for your many years of service to our city. Thank you. And welcome to you, Ms. Casperson, as well. Thank you. Any additional discussion? Director Jorgensen, please call the roll.

Councillor Christian? Yes. Councillor Warmka? Yes. Councillor Schmitz? Yes. Councillor Mack? Yes. President Becker?

Yes, that motion does carry. Thank you. Moving on to 4.2 is our Moody's Investor Service Bond Rating.

Okay, great. As was mentioned in the memo, the city did have a conversation with Moody's Investor Service in preparation for this bond issue, and Moody's did affirm the AA2 rating on the outstanding debt in addition to the bonds that were just awarded by resolution. So the AA2 rating is the third highest rating that Moody's offers, and that puts the City of New Ulm in a select group of Minnesota issuers. It is a very high credit rating. And highlighted in their report were the city's strong financial reserves, growing revenues, and stable management debt burden. Also, just signaling to the market that the City of New Ulm is a very strong credit, and Ultimately that translates into lower borrowing costs and as you saw with the bond issue also very high interest from a lot of members of the underwriting community I would like to point out that when we have a conversation City manager finance director and your economic development director all participated in that discussion and they really did a fantastic job Presenting the financial discipline of the city. I will also stand for questions if you have any I

Adam, President and Councilors, I'd like to make a motion to receive notification that Moody's Investor Services has assigned a AA2 bond rating to the City of New Ulm General Obligation Bond Series 2026. Second.

Thank you. We do have a motion and a second. Any further discussion?

Just a thank you from Council and staff. Excellent. Keep that rating up there. Thank you.

Thank you. Any additional discussion? Those in favor signal by saying aye. Aye. Any opposed? That motion does carry. Thank you very much.

Thank you, Heather. Thanks, John.

Thank you, John. Item 4.3 is the 2027 MSAS Improvement Project.

Madam President, city councilors, setting the date for this 2027 MSAS improvement project is the next step in the project delivery schedule. Just some quick background. The city's contracted with SEH to deliver this project. We conducted the public open house and some public feedback on the roadway layouts and designs for that corridor. It is our intention to hold the public hearing and then be ready for bidding this project November, December of this year.

I'll motion to set the date of the public hearing on the 2027 MSAS Improvement Project, North Garden Street from Center Street to 5th North Street for Tuesday, September 1, 2026 at 4.30 p.m. Second.

We do have a motion and a second. Any further discussion? Those in favor, signal by saying aye.

Aye.

That motion does carry. Item 4.4, use of parking stalls by Human Rights Commission for a Welcome Week event.

I'll offer a motion to authorize the use of 30 parking stalls by Human Rights Commission located in the second north. Broadway and Street parking lot adjacent to City Hall to hold a welcome event on Friday, September 18th, 2026 from 4.30 p.m. to 7.30 p.m. Second.

We have a motion and a second. Any further discussion? Those in favor signal by saying aye. Aye. That motion does carry. Item 4.5, Contribution Requests for the 2027 City Budget.

Hey, counselors. This is something we discussed at the work session after the last meeting. I have summarized the request based on the responses I received from all of you. There are four separate motions here to be made, two to set the amounts for the 2027 contributions, and then the second two motions to basically decide how are you going to handle these over the next few years. So the first one is a contribution to the New Orleans Business and Retail Association. Based on the responses I received, $5,000 is the average that was recommended by counselors and the mayor.

I'll take a stab at this one. I'll make a motion to approve a $5,000 contribution.

Don't you have to abstain from this?

Oh, you're right.

I will abstain from that. You want the first one?

Yeah promotion to approve the $5,000 contribution the new home business retail Association as part of the city norm 2027 budget Second we do have a motion and a second any further discussion Those in favor signal by saying aye aye any opposed abstain Abstain, thank you Section 2 approving the following contributions as part of the city budget. I

motion to approve the following contributions as part of the City of New Ulm's 2027 budget. Brown County Historical Society, $22,500. Heart of New Ulm, $10,000. Wanda Gog House Association, $1,375. Lind House Association, $2,250. Grand Center for the Arts, $2,750. State Street Theater, $2,375. Southern Minnesota Initiative Foundation, $1,125. River Valley BMX, $900. Bavarian Blast, $1,750. New Ulm Royalty Program, $2,200. Concord Singers, $6,350. NARN of New Ulm, $2,175, totaling $55,750. Second.

We do have a motion and a second. Any further discussion?

I think, you know, we all took a look, and we voted, and, you know, it's a reduction. It's a starting point, and, you know, I think it kind of shows a level that we're trying to phase it out some things, and it's not just a cold stop.

Correct. I'd also like to thank Nicole for her work on this and kind of putting all of our feedback and our responses and thoughts together on this as well. Any other discussion?

My only question is, again, with the royalty program, it's less than the amount that was requested. The other part of it's going to come out of the fire budget. So why would we short to take?

Relief, not the fire.

Relief, I mean, Relief Association. But if we're going to swallow that up into the city budget in the next motion, why would we be shorting them what is needed?

How much? $2,400 is what was requested. I thought it was $2,300.

Whichever, it was less than the request.

Had they previously come to us directly for funding? I don't remember seeing them in the past.

Last year was their first year.

Madam President, State Councillors, Joe Saad, I'm Secretary, New Elm Fire Department Relief Association. With the request at 23 and the allocation for 2,200, Relief Association would be fine with the $2,200 amount. This funding is used to purchase all the apparel for the Queens and stuff like that throughout their run as royalty of New Ulm. It's used to offset that cost. That's all.

So the motion motion as it was made with amounts is still firm, correct? Any additional discussion? All right those in favor signal by saying aye aye any opposed Okay that motion carries

I'll handle the next one, Madam President and Councilors. I'd like to make a motion to make contributions to the following organizations at amounts to be determined each year as part of our annual budget. And those organizations are the Brown County Historical Society, Southern Minnesota Initiative Foundation, the New Ulm Royalty Program, the Concord Singers, and the Narin of New Ulm. Second.

We do have a motion and a second. Any further discussion? I would also like it noted that there have been some organizations such as the Battery, the Herman for the fireworks, those have already been added as part of our annual budget. And so that's why certain organizations may not be on this list in case there's any questions from those ones. And the municipal band. Oh, and the municipal band.

There was one other one.

And... Know there were several there's four of them that were already in that Minnesota initiative fund. Nope Herman Monument cast is a So so those are not listed specifically Within this motion because they already have been absorbed into our annual budget any additional discussion Those in favor signal by saying aye aye that motion does carry One more folks

The last one is a little more broad. It basically is eliminating this process. So I think what we would do is stop sending out those letters to them requesting that they send in their requests each year and just leave that open. I mean, obviously everybody's free to send a letter and request and then that would just be absorbed into the budget process and those decisions could be made within that normal timeline.

to eliminate the contribution request process and phase out contributions to all other nonprofit organizations over two years for the final contributions to be made in 2028 or less. Second.

Thank you. We do have a motion and a second. Any additional discussion? Those in favor, signal by saying aye. Aye. That motion does carry. Last item of business today is item 5.1, which is report of claims paid.

Madam President, Councilors, I'd like to make a motion to accept the list of claims in the amount of $5,286,348.72. Second. We have a motion and a second.

Any further discussion? Those in favor, signal by saying aye. Aye. That motion does carry, and with no additional business, today's meeting is adjourned. Thank you.