Asbestos costs add $200,000 to district levy

State officials approved a request by Luverne School officials to increase the local 2020 levy an additional $200,000.
The 5.94 percent increase brings the total amount from local property owners payable in 2020 to $4.08 million, up from the preliminary levy of $3.8 million approved in October.
Business manager Marlene Mann outlined the 2020 budget at the district’s Truth In Taxation hearing Dec. 19.
The district set its preliminary levy this fall to increase by $29,000 — a .75 percent increase over the 2019 levy, which was the maximum allowed by the state.
However the Luverne district incurred unforeseen costs with a $200,000 asbestos removal bill as part of the school construction project, and Mann said she appealed to the state to have that bill included in the levy.
The request was approved as a health and safety budget item and won’t be paid as part of the district’s $30 million building remodeling project.
Luverne School Board members approved the new district levy at $229,000.
Until June 2020, the district anticipates $18.8 million in revenues, most of it ($13.3 million) from the state.
Expenditures are estimated at $20.9 million, including $2.7 million for the building project.
The largest expenditure is for salary and wages with a budget of $9.2 million with an additional $2.5 million set aside for employee benefits.
The district and the Luverne Teachers Association are currently negotiating for the next two-year contract, which technically began July 1 of this year.
No settlement had been reached at the time of last week’s school board meeting.