By Sara StrongThe Luverne City Council Monday approved a preliminary tax levy of 3.71 percent more than the 2003 levy. The local tax levy will amount to $744,697 of the total governmental budget, which is about $3.8 million.The majority of the governmental budget comes from state aid and city enterprise funds, such as utilities and the liquor store.City Administrator Greg LaFond said, "I think it’s a very responsible budget, a very responsible tax levy."He explained that most property owners will see a decrease in taxes, except for those who made assessed property improvements, because the overall valuation increased by 8 percent.A higher valuation overall means less is needed from individuals who share in the total levy collection.The city will have a public hearing Dec. 14 regarding the 2005 budget and proposed tax levy. The preliminary levy is for 2004, collectible in 2005. The city can reduce the levy from the preliminary amount before it is finally certified in December.Although many property owners won’t pay more in city taxes, utility rate increases are figured into this budget.Residential sewer rates will increase 11 percent in 2006 through 2008. Commercial sewer rates will increase at the same rate.Refuse and recycling will increase 10 percent in 2006, and 5 percent in 2007 and 2008.Residential water rates will increase 3.8 percent in 2006 and 3.5 percent in 2007. Commercial water rates will increase 4 percent in 2006 and 3.5 percent in 2007. Electric rates are undergoing a study to help determine rates for 2006 through 2008.