Luverne city levy to increase 9.34 percent for taxes payable 2023

Luverne City Council members have approved a $2,766,560 levy for taxes payable in 2023.
That’s a 9.34-percent increase of $236,380 over the current levy.
The levy amount covers $1,958,110 for the General Fund, $258,450 for principal and interest on existing debt, and $550,000 for the annual pool and fitness center subsidy to keep rates affordable for all residents.
The General Fund provides basic city services, like public safety (fire, law enforcement and building inspections), streets and public works, parks and recreation, administrative and finance services and elections.
The city is budgeting $2,325,500 for capital purchases in 2023. This includes:
•$705,000 in the electric department, including $190,000 for transmission system upgrades, $80,000 for an F250 truck with utility box, $50,000 for street light poles and fixtures, $15,000 for one-third cost of a backhoe, $150,000 for distribution system upgrades, $100,000 for transformers and $120,000 for power plant tuckpointing windows and roof improvements.
•$395,000 for main city park building maintenance and improvements and road overlay and parking, as well as overlay at Riverside Park.
•$380,000 in public works for a $295,000 dump truck with plow, a $25,000 crack filling bagger and $60,000 for alley patching and seal coating.
•$340,000 for the Luverne Loop including $60,000 for playground equipment, $10,000 for trash cans along the trail, $120,000 for trail work from Warren Street southwest to the trail, $100,000 for wayfinding signs and $50,000 for a trailhead entry sign.
•$165,000 for Carnegie Cultural Center window improvements and brick repair and for Palace Theatre tuckpointing.
•$120,000 in the sewer department, including $40,000 to replace steel and paint roofs, $50,000 to replace sewer lines, $15,000 for new equipment, and $15,000 for one-third cost of a backhoe.
•$95,000 in the water department including $80,000 for water main looping and system upgrades and $15,000 for one-third cost of a backhoe.
•$67,000 for a fire department air compressor.
•$30,000 to replace civil defense sirens,
•$28,500 for the pool and fitness center including $11,500 for a portable pool lift and $17,000 to replace the diving board and stand.
Property taxes provide 45 percent of the revenue needed to fund the Governmental Budget.
Local Government Aid from the state represents 25 percent of the revenue needed to fund the Governmental Budget. It’s estimated the state will provide $1,558,606 in aid for Luverne’s 2023 budget.
City Council members note that the 2023 9-percent levy increase doesn’t represent a 9-percent increase in property taxes, thanks to the city’s healthy tax base.
For example, an 11.77-percent levy increase for taxes payable in 2022 resulted in an average 1.95-percent increase in the total tax rate.
For a $150,000 Luverne home, this amounted to a property tax increase of $18.87, a 1.16-percent increase.
The city’s annual Truth in Taxation hearing is set for 5 p.m. Tuesday, Dec. 6.
“TnT” hearings are required by state law to improve accountability and explain to taxpayers the relationship between budget decisions and property taxes.
The goal is to provide taxpayers the opportunity to become involved in the local government budget process.