City levy to go up 5 percent, salaries get 2-percent hike

The city of Luverne conducted its annual truth in taxation hearing Dec. 8 prior to the City Council meeting in Luverne City Hall.
At the hearing, which no one from the public attended, City Administrator John Call presented information on the city’s $5.4 million budget.
“I will tell you it's a balanced budget,” he said.
“We have adequate reserves, we’re on firm financial footing, we have a AA-minus bond rating, and Luverne continues to have the lowest property taxes among cities our size in southwest Minnesota.”
Council members formally approved the 2016 city tax levy at $1.633,623, which is $78,433 more than the current levy — an increase of 5.04 percent.
Call pointed out with the city’s current expanding tax base, most homeowners in Luverne will see a decrease in city property taxes payable next year.
 
City staff to receive
pay increases
As part of the Dec. 8 resolution approving the 2016 budget and capital improvement plan, the council also approved a 2-percent increase in the city’s 2016 pay and classification plan, effective Jan. 1.
The contract ratified with the union allows a 2-percent increase in 2016, and at the Dec. 8 meeting, the council approved a 2-percent increase for non-union employees as well.
The following increases, which includes step and lane increases for some, were approved for 2016:
City Administrator John Call’s salary from $118,198 to $120,570;
City Clerk Jessica Mead from $57,428.80 to $59,529;
Finance Director Barb Berghorst from $93,516 to $96,304;
Accountant Candy Reese from $67,620 to $68,994;
Deputy finance clerk Robyn Wessels from $57,428 to $58,573;
EDA Director Holly Sammons from $56,513.60 to $58,573;
Building Official Chad McClure from $52,790.40 to $65,936. (McClure has achieved his Minnesota building official certification and now heads up the department since the previous building official retired);
Public Works Supervisor John Stoffel from $72,051.20 to $74,443;
Water/Wastewater Supervisor Al Lais from $78,540.80 to $81,058;
Pool Manager Sam Honerman from $60,216 to $62,358;
Assistant Pool Manager Michelle DeKam from $39,956.80 to $40,747;
Liquor Store Manager Kenny Rolling from $60,216 to $62,358.
 
Budget amended for
$1.4 million in
unanticipated expenses:
The council amended the city’s 2015 budget to cover unbudgeted expenses that were incurred over the past year. These included:
•purchase of a used ladder truck for the fire department for $550,000,
•South Highway 75 project and extension of Koehn Avenue in Industrial Park for $646,800.
•maintenance of city-owned buildings — $28,000 for garage door replacement and lighting at the ice arena and $9,820 for tuck pointing at the Carnegie.
•legal fees for the cable franchise renewal at $10,000.
•legal fees related to the Lincoln Street and Sharkee’s blighted properties at $15,000.
•purchase of blighted structure on Barck Street for $22,500.
•blight removal on the Barck Street TIF project for $30,000.
•Flag Park construction  for $30,000.
•acquisition of a lot in the Industrial Park for $54,000.
According to the resolution, expenses included in the budget amendment do not cause total appropriations to exceed total estimated revenue and cash balances.
Call said it’s unusual for the city to have $1.4 million in unbudgeted expenses, but the explanation is logical.
For one thing, the city took advantage of an opportunity to purchase a used ladder truck this year at half the estimated budgeted amount for a new one in the five-year plan.
Also, the South Highway 75 improvements were delayed, pushing those expenses into 2015’s budget.
 
In other business Dec. 8,
the City Council:
•adopted a resolution establishing license fees, rates and charges for city services. The average residential utility bill will increase 3.51 percent.
•adopted a resolution committing fund balances and establishing a reserve policy for funds.
For example, 75 percent of the accumulated depreciation for enterprise funds, $250,000 for property and casualty and $150,000 for the workers compensation fund were set.
•approved the Luverne Loop Trail Master Plan that was presented at the Nov. 17 city meeting. The plan will guide trail development and will help make the project eligible for funding through state and federal grants and loans.