City budgets $2.5 million in capital expenses for next year

The Luverne City Council is considering nearly $2.5 million in capital purchases next year, according to a July 21 budget discussion in City Hall.
That compares similarly to capital spending in 2014 and 2015 and an anticipated $4.5 million in 2017.
The council met with city department heads to review upcoming spending in the areas of fire, government buildings, parks and recreation, streets, airport, pool and fitness center, the Luverne Loop, water, sewer, storm sewer, refuse, electric, liquor and others.
“It’s a plan that stays somewhat flexible, depending on circumstances,” City Administrator John Call said. “But it gives our finance officer something to look at. It’s an excellent planning tool.”
Following are items on the 2016 expense list, which includes those with an expected life of more than one year and a value of more than $5,000.
•Parks and Recreation plans to spend $130,500 next year. That includes $60,000 for a 16-foot mower to replace the 2010 machine with 1,500 hours. This large area rotary mower is the largest in the city’s fleet. “We definitely want to keep this key piece of equipment updated,” Call said.
The Parks and Rec Department will also spend $35,000 on small play structures for Hawkinson and Rotary parks and $10,500 for skidloader attachments (snowblower and pallet forks) next year.
Parks and rec will spend $25,000 on a sidewalk to the drinking fountain and main restroom in the Luverne City Park to make it more handicap- and elderly-accessible.
•Handicap-accessible public restrooms will be developed downtown for an estimated $20,000. The current public restrooms are in the Cragoe Building, which is the former City Hall.
The city has leased public restroom space from Cragoe, but the city now owns the FGL commodities building next to the Palace and is considering developing that space for community promotion, in addition to public restrooms.
For example, it could be stocked with community informational brochures, and during some times of the year, staffed with a person to direct tourists and new residents.
•The Street Department is planning to spend $87,250 in 2016.
That includes $35,000 on a new pickup to replace the 2003 pickup, which will be retained for part-time and summer help.
Also in the 2016 streets budget is a DGR study of street overlay and rebuilds for an estimated $10,000, and a crack filler at $42,250. The equipment will replace the 2000 model that was malfunctioning.
•The airport plans to spend $230,000 next year on the taxiway in the hangar area and $65,000 on the corporate hangar building. Councilman Kevin Aaker, who serves on the airport board, reported that all hangars at the airport are now rented out.
•The pool and fitness center budgeted $10,000 for new exercise equipment and $6,000 for new pool play structures. The frog slide is slated for replacement.
•Work on Phase 1 of the Luverne Loop bike and hiking path in 2016 is estimated to cost $692,378 next year. See the related story about the trail’s five-year budget plan.
•The Water Department plans to spend $527,500 next year. That includes $400,000 to paint the water tower on Highway 75 next year (see the related story).
Other 2016 water expenses include $27,500 for a pickup and utility box to be shared with the sewer department, $40,000 for water main looping, $40,000 for system upgrades and $20,000 for its share of a cold storage building with the electric and sewer departments.
•Sewer department expenses are expected to come to $274,850 next year. That includes $50,000 for sewer line replacement, $27,500 for its share of a new pickup and utility box, $28,600 for an alarm and controller replacement, $33,500 for a crossroads sewer, $100,000 for sewer collection in Luverne City Park, $15,000 for new equipment and $20,000 for its share of the new cold storage building.
•The electric department has budgeted $405,000 for 2016 capital expenditures. That amount includes $50,000 to replace 50 light poles and fixtures, $80,000 for its share of the new cold storage building, $100,000 for power plant building maintenance, $25,000 for transformers and $150,000 for distribution upgrades.
•The storm sewer fund will see a $9,000 expense for replacing rock and landscaping at the Veterans Pond.
•The city will spend $5,500 to replace a power washer and $38,000 on a 4-inch pump at the central garage.
•There are no major capital expenditures planned for the Fire Department next year; however, a $400,000 platform truck is on the list for 2018. The current 1985 platform truck is becoming harder to certify due to its age. A new one costs $1.2 million, but the Fire Department will start looking for a used one instead.
A $500,000 heavy rescue vehicle is in the Fire Department capital plan for 2019.
Another major expense anticipated in 2017 is $300,000 for a new garbage truck in the Refuse Department.
These expenses are considered as part of the overall five-year capital improvement plan for the city of Luverne.
The other half of the city’s 2016 expenses, the operations budget, will be reviewed next month.
The Council will approve a proposed levy in September, and it will be certified to the county auditor in December.