By Ashley Stewart

Owatonna People’s Press

BLOOMING PRAIRIE — Next year, Blooming Prairie residents will see an increase in the city’s tax levy for the first time since 2011.

On Monday, the Blooming Prairie City Council approved the issuance of a $990,000 public facility bond by the Blooming Prairie Economic Development Authority to fund the construction of a new ambulance building and the extension of Fourth Street Southeast.

The 15-year annual bond payment — starting in 2015 — will mean a $48,800 tax levy increase to residents, said Mike Jones, Blooming Prairie city administrator.

For residents with a $100,000 home, it’ll mean an average of a $36.41 increase; for a $150,000 home, it’ll mean a $64.04 increase; and for a $200,000 home, it’ll mean a $91.68 increase.

“We will be doing this project in 2014, and 2015 would be the first payment, 2016 would be the second, and in 2016, the industrial park is paid off,” Jones said. “That’s the same number as the $49,000 tax levy, so if we didn’t do anything else in 2017, the public would see their taxes go down because we would just be transferring these payments to the bond.”

Jones said the remainder of the annual bond payment will be paid for by the ambulance fund, water fund, and the storm-sewer fund.

The total project cost is about $1.1 million, but the city is only funding part of it.

“If we go with $1.1 million, we’re saying we’re funding the whole thing, but if we go with the $990,000, then I’m saying I’m going to use the sale of the building, some of the cash flow to the ambulance to keep that bond down below the million-dollar range,” Jones said.

The street project will cost about $168,000, which includes the extension of the water main and storm main as well as street work. The project was originally more than $335,000, but the city received a grant from theMinnesota Department of Employment and Economic Development that covers half the project, Jones said.

The new ambulance building, which will be located east of NAPA Auto Parts and north of Miner’s Outdoor and Rec, will cost about $944,500.

Jones said the new building is the first ambulance expense the tax levy has covered since it started.

“We haven’t spent any money on the ambulance except when we first started. They’ve paid for their own building, their own wages and their own repairs. There’s nothing that comes from the city tax levy, except when they first started for the operation of the ambulance. The community probably owes them for what they’ve done for the city.”

The city council started talking about the ambulance and street projects last summer, and Peterson believes they’ll be good for the city.

“A lot of good stuff is being pulled together with this project in the end,” he said. “By taking our time we really got a lot pulled together that’s going to be a great benefit to the city.”

Bids for both projects opened last week, and Jones said the city council will approve them at its April meeting.

Also at the Blooming Prairie City Council meeting:

• Blooming Prairie Police Chief Paul Wayne informed the city council that he will retire soon. The city council approved advertising for a new police chief and authorized Mayor H. Peterson to appoint an Employee Replacement Committee to interview candidates.

• Effective Jan. 1, 2014, Blooming Prairie Volunteer Ambulance EMTs will receive reimbursements for initial training and recertification after a year with the ambulance squad.

• The city council approved the submission of bids for the 2014 seal coating improvements.

• The city of Blooming Prairie was also approved for a Greater Minnesota Business Development Public Infrastructure grant for $215,829, which will go toward the city’s extension of a water main, storm sewer and roadway to assist in the expansion of Minimizer and create access to four additional industrial park lots.