Luverne to raise levy 9.4 percent

Luverne City Council members approved a 9.41-percent levy increase for taxes payable in 2020, 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 recent $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.
The operating budget 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.
 
Utility rates to increase
The council also took action to set the fees, rates, and charges for services for the upcoming 2020 fiscal year. 
Based on a recent rate study, the council approved slight rate increases for water, sewer and electric utilities, which for the average resident will amount to roughly a 4-percent increase.
The rate adjustments are necessary to finance the maintenance, operation and necessary improvements. 
There will also be rate adjustments in building/zoning/safety departments, including various business licenses and fees.
Bond agreements and covenants require that the city of Luverne make efforts to adequately fund and meet operating expenses of the utilities, and rate studies are done every three years by an outside consultant to set rates at an adequate level.