Staff photo by Fritz Busch Newly-elected Sleepy Eye Mayor Joann Schmidt, left, leads the Sleepy Eye City Council meeting in the City Council Chambers Tuesday. Prior to the meeting, Schmidt took the oath of office along with re-elected city councilors Scott Krzmarzick and Christina Andres. Sleepy Eye City Manager Bob Elston is pictured at right.

SLEEPY EYE — In an effort to offset increasing ambulance runs and a high percentage of patients on Medicare that pays about 38% of run costs, the Sleepy Eye City Council unanimously approved 2025 ambulance rate increases Tuesday.

“There are many variables with this,” said Sleepy Eye City Manager Bob Elston.

He recommended increasing in town basic life support ambulance run rates from $1,100 to $1,400, $1,450 for out of town runs and boosting mileage rates from $22 to $24 per loaded mile. Approval came on a motion by councilor Doug Pelzel, seconded by Scott Krzmarzick.

“We would still be a little shy of breaking even. At the same time, we put $100,000 towards a new ambulance for next year,” Elston said about the city-owned ambulance service.

“For a long time, we were collecting 90-95% of ambulance runs. The last couple years, we have far under-collected. We’re looking at a couple billing companies and training on what we could do better to try to maximize (ambulance run) costs we should be paid,” he said.

Elston said the ambulance service made 692 runs in 2024 and 732 runs in 2023.

In December, the city council approved a 9.1% 2025 city property tax levy hike that generated $105,950 to help offset rising ambulance costs. Elston said the increase was needed because Medicare payments only covered 38% of ambulance run costs. The increase created a $7.50 monthly tax hike for a home valued at $150,000 for taxes and $15 a month more for a home valued at $250,000 for taxes. Elston said the median (middle) value of a Sleepy Eye home was $141,000.

The city council unanimously approved a five-year contract extension to with RVS Sanitation through Dec. 31, 2029, motion by Councilor Nate Stevermer, seconded by Pelzel. Residents can contact RVS if they want compost services that include a blue container with a red lid for less than $1 more per month. Only glass clippings, leaves and garden waste are permitted to be hauled to the Sleepy Eye City Compost site.

Consideration of a loan to the Sleepy Eye Arena Association was tabled to a finance committee meeting beginning at noon, Jan. 22 in the council chambers. The topic may be considered by the city council at a later date.

Sleepy Eye Mayor Joann Schmidt and councilors Christina Andres and Scott Krzmarzick took the oath of office prior to the city council meeting.