Luverne City Council approves preliminary levy

Luverne City Council members are anticipating a 9.41-percent levy increase for taxes payable in 2019, according to action taken at their Tuesday night meeting.
The $2.1 million levy is about $180,300 more than the current levy and includes $32,334 in debt financing for the $14 million wastewater treatment plant upgrade.
Without that, the increase would have been 7.72 percent to cover the $1.9 million general fund and $163,000 for principal and interest on existing debt.
At their Aug. 20 meeting, council members reviewed the operating budget, which included rough outlines of the city’s governmental expenses and revenues. The governmental budget includes the general fund, airport, pool and capital projects.
Governmental expenditures for 2020 will be roughly $7.4 million and revenues are estimated at $7.6 million.
They include public safety at $1.32 million — about 18 percent of costs, public works and airport at $1 million — about 13.5 percent of costs, culture and recreation at $1.2 million and capital outlay at $1.3 million.
Governmental revenues come in the form of taxes at roughly $2.06 million — or 28 percent, local government aid from the state at $1.45 million — 20 percent of revenue, and the rest from enterprise funds, fees and other charges.
The council discussed Local Government Aid, which was established by the Minnesota Legislature in 1972 to help cities that have greater needs than what they could reasonably cover in property taxes.
The idea is property tax relief — to pay for essential services and infrastructure and to help hold down property taxes.
However, in over the past decade, outstate Minnesota cities have seen LGA decrease or remain flat, despite inflation and cost increases.
Statute requires the preliminary levy amount to be set in September, and the final levy won’t be certified until December, after the Dec. 10 truth in taxation hearing.
The amount could be adjusted lower by then, but by statute it can’t be increased.