City council approves increase in utility rates

By Chad Koenen

Publisher

New York Mills property owners will likely see an increase in the city portion of their taxes next year.

During its regularly scheduled meeting on Tuesday, Dec. 12, the NY Mills City Council approved a 7.12 percent increase in the city portion of taxes next year. The increase will result in $42,000 of additional revenue for the city, which it will use for a variety of upcoming projects and general maintenance moving forward. 

The increase will also fund a payment the city must make to Otter Tail County to correct a tax exemption error that was recently discovered in relation to the Perham Health Hospital District. In 2023 the city made a $23,254 to the county, as well as a $46,508 payment in 2024 to correct the error. A final payment of $23,254 will be made in 2025. 

The 2024 tax levy increase comes on the heels of a 5.24 percent tax levy increase the city approved for 2023.

While the city taxes will be increased next year the 7.12 percent tax levy increase was relatively low compared to most communities in the region. For example, Pelican Rapids is proposing a 16.44 percent tax levy increase, Parkers Prairie is proposing an 8.94 percent tax levy increase, Henning is proposing a 20 percent tax levy increase, Ottertail is proposing a 30 percent tax levy increase and Fergus Falls is proposing an 8.67 percent tax levy increase.

The largest proposed tax levy increase is in the City of Dalton which is proposing a 43.12 percent increase in 2024. 

Two of the only communities in the area with a lower proposed tax levy increase next year are Bluffton, which is proposing a 5.97 percent tax levy increase and Perham, which is proposing a 6 percent tax levy increase. 

In addition to increasing the tax levy, the city council approved a 5 percent increase to the water charge, 3 percent increase in sewer and 5 percent increase in natural gas for city utilities. 

In other news

• Approved a 10 percent Cost of Living increase for city employees in 2024. 

• Heard a request from Parker and Mark Wegscheid to conduct personal business on a city-owned parking lot in-between the post office and former Backwoods BBQ restaurant. The request was to park 15-20 vehicles in the parking lot for NY Mills Auto Sales LLP. The city council expressed a concern regarding leasing, selling and having vehicles parked on a more permanent basis on the city-owned parking lot. 

• Approved a resolution to acknowledge the city council support for a CDA grant for the NYM Downtown Revitalization Grant Fund Application. The grant being requested was $25,000 and will be utilized to rehab the downtown business district in the hopes of attracting new businesses/rehab existing ones if needed. 

• Heard the monthly liquor store report that showed the combined gross sales for the month were down four percent from last year. Net revenues were up by 1.46 percent as a percentage of sales and the net revenues years to date before transfers are about $8,000 from last year.

• Heard the monthly call report from the fire department which showed the fire department responded to 11 calls for the month. The city council also accepted the slate of officers for 2024, which includes: Nick Roder as fire chief, Jedd Wallgren as second assistant, Ryan Brasel as second captain, Logyn Saewert as rescue captain, Shanon Kline as safety officer, Brandon Marsh as training officer, Kurt Fahlen as secretary and Nic Pederon as treasurer. 

• Heard the monthly police report which showed 156 calls for service during November. There were four citations and 31 warnings issued. 

• Heard that signs were installed near the pond on South Point where it has been reported that several kids were out playing on the ice. The Do Not Enter signs that was placed is consistent with what the city has around water retention ponds that have been placed on other city-owned property. Once the weather turns colder and daytime temperatures remain below freezing the city staff will begin working on the ice rink in Smith Park.