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City Council discusses 2026 nonprofit budget requests, levy impact and process timeline
Summary
At a July 15 work session the New Ulm City Council reviewed $182,000 in nonprofit funding requests for 2026, discussed levy implications and set a process for returning to allocations as final budget numbers become available.
The New Ulm City Council on July 15 reviewed nonprofit funding requests for the 2026 budget and discussed how those awards would fit into the city's tax levy and overall budget timeline. Council members said the council would not make binding decisions at the work session and asked staff to return with numbers as department budgets and levy estimates are finalized.
Council members said the city received $182,000 in requests for 2026; in 2025 the city contributed $121,300 toward nonprofits and the council considered a $251,000 request total. Councilors noted that a change equal to roughly $99,000 would represent a 1% change in the city tax levy, and said they were cautious about approving increases before the finance director provides final levy projections.
Why it matters: City allocations to local nonprofits are drawn directly from the levy and affect taxpayers. Council members repeatedly said they want to avoid overcommitting before the finance director delivers final numbers and suggested phasing changes in over multiple years when reductions are considered.
Most councilors supported holding some requests at last year’s levels as placeholders until the finance director, Nicole, provides final levy and overhead figures. Councilors discussed returning to the topic multiple times through the summer and fall, with a tentative plan to revisit allocations as part of the regular budget cycle leading up to the preliminary levy deadline in September; the council noted the next regular meeting for final budget work would be Aug. 5, pending staff updates.
Discussion vs. decisions: This was a discussion-only work session; no motions or votes were taken. Several councilors said they would favor keeping some nonprofit allocations at prior-year amounts initially and trimming later if required. Staff was asked to prepare numbers showing the effect of different levy assumptions so the council can decide at future meetings.
The council also confirmed a deadline policy for late nonprofit applications: late submissions would be forwarded to the council for a majority decision rather than placed automatically on staff agendas.
Looking ahead: Finance staff will factor the council’s direction into draft budget runs and return with updated figures. The council emphasized it may adjust placeholders after the department and overhead amounts are finalized and after the preliminary levy is set in September.
