Luverne levy may increase 11.77 percent, impact to be mild

The City of Luverne set its proposed 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, debt service, and $250,080 for principal and interest on existing debt.
Council members reviewed the city’s five-year capital improvement plan at their July 30 meeting and the proposed 2022 budget at their Aug. 17 meeting.
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, saw an actual property tax increase of 1.3 percent in 2021, despite the levy increase of 7.9 percent.
By statute cities must set preliminary levy amounts in September and certify them in December. The December amount may be lower than the preliminary levy, but it may not be higher.
The city’s annual Truth in Taxation hearing is set for Dec. 14.