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Luverne city levy increases 11.77 percent

Subhead
Utility rates rise by 4.22 percent
By
Lori Sorenson

The City of Luverne set its 2021 tax levy at $2,530,180, which reflects an 11.77-percent increase over the current levy.
The levy includes $2,280,100 for the General Fund and $250,080 for principal and interest on existing debt.
The council approved the levy, budget and pay plan (see the related story) following the city’s annual Truth in Taxation hearing Dec. 14.
As part of that hearing City Administrator John Call reviewed the 2022 budget and 2021 levy.
The governmental budget includes the general fund, airport, pool and capital projects.
Governmental expenditures in 2022 are expected to be $8.5 million and revenues at $8.2 million.
Governmental expenditures include:
•Public safety at $1.5 million, about 18 percent of costs;
•Public works at nearly $1 million, about 11 percent of costs;
•Parks and recreation at nearly $700,000 at 8 percent.
Governmental revenues come in the form of:
•property taxes at roughly $2.28 million, or 28 percent;
•Local Government Aid from the state at $1.5 million, 18 percent of revenue; and
•the rest from enterprise funds, fees and other sources.
 
Levy increase not the same as property tax increase
The council acknowledged that the city’s levy has been steadily increasing in recent years, but the actual increase in taxes has remained relatively modest, thanks to Luverne’s overall tax rate.
A $150,000 home for example, will see a property tax increase of roughly 1 percent in 2022, despite the levy increase of 11.77 percent.
 
Utility rates to increase 4.22 percent
In other business at their Dec. 14 meeting, council members approved license fee rates and charges for city services.
With the additional increases in utility charges on water, sewer, electric, etc., the average residential bill will increase 4.22 percent per month next year.

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