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H-BC school budget reduction plan finalized

By Jolene Farley
The Hills-Beaver Creek Board of Education finalized a proposed budget reduction plan to recoup a shortfall of more than $100,000 in revenue for next year at a Monday evening meeting.

About $60,000 of the reductions were going to happen regardless of the shortfall, according to Superintendent Tom Knoll. "There are no reductions in any education programs," he said.

The district plans to continue the gifted and talented programs and add reading time with certified teachers. Reduced enrollment in some areas meant the district could reduce costs in other areas.

Reductions total $124,645 of which $15,000 was added back in for childcare leave costs, bringing the total down to $109,645.

At the secondary level, a teacher retirement, which will not be filled, freed up $36,269. The athletic program took a $1,000 cut.

At the elementary level, the projections for next years kindergarten class of 19 students is down from this year.

One kindergarten teaching position will be cut, saving the district $33,563. Smaller classes reduce time in music, physical education and computer classes, saving $1,635.

A reduction of a full-time teacher to a half-time teacher for the third grade saves $17,738.

Restructuring teaching assistant time frees up another $16,000.

Juggling custodial time and a reduction in total lunchtime saves another $2,367.

District office cuts include turning down the thermostat, a full-time payroll employee dropping to half-time payroll, saving $14,300, and reduction of staff and custodians for 10 days in July adding $1,773.

The payroll employee had previously planned to drop to half time, according to Knoll.

The total cuts for the secondary school are $37,269, for the elementary $71,303 and for the district office $16,073. The grand total is $124,645.

"We are maintaining what we have," said Knoll.

The board stressed that additions could be made if required.

In other board business:
oThe building committee met with Group II Architects to walk through the proposed building site and express likes and dislikes. It was "just basically a starting point," according to board member Ann Boeve.

oNegotiations continue with teachers concerning severance packages. Teachers are asking that a formula, based on years of service and salary, be used to determine the amount of post-retirement insurance benefits for which they would be eligible.

The majority of the board members didn’t seem to favor adding the formula to the contracts. "We are trying to watch our pennies here, and it just doesn’t seem right," said Lois Leuthold, board member.

Creamery was booming business

Editor's note: This information was compiled from the Hills Our Town history book.

In 1896 A.C. Finke and Olaf Nash hatched the notion of starting a creamery in Hills. This notion would become the Hills Cooperative Creamery, a major industry. Finke and Nash visited area farmers to build support for the project.

At a public meeting in 1896 a creamery equipment salesman painted a rosy picture of the dairy business. All a farmer had to do was join the creamery association, get a dairy cow, and open a bank account to enter the business.

Despite what the salesman said, the pioneer men who attended the first meeting realized nothing would be handed to them on a silver platter.

The Hills Crescent lists those present at the first meeting in 1896 as Niels Jacobson, Fred Nuffer, John Paulson, Goodman Anderson, Asle Skattum, Olaf Kolsrud, John and Charles Nelson, Haaken Tuff, Nels, G.G. and Andrew Sundem, Charles Skovgaard, A.T. Sexe, Lars and Martin Peterson, Hans Haroldson, Gilbert Rovang, Hans Rognley, John Helgeson, Ole Medgorden, F.C. Finke, Halvor Savold, C.E. Halls, Lars Engebretson and many others.

It was decided by those present to form a cooperative creamery business.

The first board of directors hired Mr. Barthong as manager. He came recommended by the distributor of the new creamery equipment.

The creamery started with a steam-powered Russian Cream Separator. When the steam went down, some of the cream ran into the skimmed milk vat, which was not good. Those days whole milk was hauled to the creamery and each farmer took his skimmed milk home with him.

The first patron of the creamery was O.G. Qualley. Second in line was Osmund Rortvedt.

As business grew, a second separator was purchased. The manager strongly recommended the creamery purchase the same model again. It was later discovered Barthong received a $75 kickback on the deal.
It was also discovered Barthong had spent 30 days in jail for jumping a board bill. Within a short time, the creamery had to purchase new separators and find a new manager.

Fritz Lehmberg was hired as the new manager. Under his leadership, the creamery grew and prospered. A new building was built, new equipment purchased, and Blue Ribbon Butter was made a familiar sight around the country, particularly in New York and California.

Eli Johnson delivered starter milk to the creamery every morning. When production increased and more starter milk was needed Griffith Helgeson and Fred Metzger joined Mr. Johnson in delivery.

By 1934, the Hills Cooperative Creamery had produced 1,269,580 pounds of butter. Thousands of dollars had been paid out to patrons in three states. The biggest year was 1942.

Many people served on the board of directors including Albert Halls, Halvor Halverson, John Bosch, Ivan Wyum, Earl Nelson, Richard Johnson, G.H. Helgeson, O. Rortvedt, Lewis Skattum, J.A. Thorin, Ernest Metzger, Art Rogness, Bill Kitchenmaster, Elmer Drost, Clark Helgeson and Gilbert Smith, to name a few.

Lehmberg passed away in 1945 and was succeeded by Olaf Nash as secretary and Merle Clemetson as operator. Nash, who retired in 1948, was replaced by Vernon Eberlein. Later Bernard Sevatson served as secretary, then Arnold Qualley until the creamery closed in 1961.

By 1961, more and more farmers had quit milking to feed cattle or raise grain. It soon became apparent the creamery would no longer be able to operate. The creamery was sold to Sioux Valley Milk Producers in 1961.

Grant awarded to Patriot Millwork

Hills City Hall has new cabinets handcrafted by Patriot Millworks. Derek Ehde (left) and Lance Crawford are two of the student craftsmen who worked on the project.

By Jolene Farley
Patriot Millworks has purchased a trailer to deliver their finished wood products. The purchase was made possible by a $4,095 Youth Entrepreneurship Grant from the Southwest Minnesota Foundation.

Industrial arts instructor Gregg Ebert and his students began working on the grant in November. In order to qualify for the grant a business plan and details about Patriot Millworks had to be submitted to the Foundation.

Grants must be used for venture capital to establish a new business, business expansion or product development. The business must be planned and operated by students linked to an instructional program in a school setting, according to Ebert.

"We had to be growing and building our business to even qualify for the grant," said Ebert. "It was a record-setting year for our furniture business with $9,000 in sales." Patriot Millworks plans to surpass that total next year with a goal of $20,000 in sales, according to Ebert.

This year furniture deliveries were made with a Hills-Beaver Creek school bus, but the new enclosed trailer will allow a more efficient delivery system.

After Patriot Millworks was notified Feb. 27 of their award, Ebert approached the Board of Education to ask for a temporary loan to purchase the trailer before the grant money was received. The board agreed to the loan.

"I was really happy to find out we got it (the grant)," said Ebert. "We wouldn't be able to expand without the trailer. There was no way to move furniture."

The Southwest Minnesota Foundation was established in 1986 as the Southwest Initiative Fund. The foundation is an independent, non-profit, regional foundation that operates in 18 counties of southwest Minnesota.

The mission of the Foundation is to promote philanthropy, leadership, innovation and collaboration for the 18 counties of southwest Minnesota.

Officials tally cost of snow removal

By Lori Ehde
As township gravel roads emerge from their icy layers, township officials are adding up the cost of this winterÕs snow removal to their budget.

Considering higher-than-normal fuel costs, plus longer labor hours, Beaver Creek Township spent nearly 40 percent more on snow removal this year than during a normal winter, according to past township board chair Peter Bakken.

Like many townships, Beaver Creek came into this bad year on a good budget. With two years of mild winters under the belt, the budget held some reserves.

Keeping up with snow removal is costly, but Bakken said it's cheaper than rebuilding roads in the spring.

"Our goal is in the springtime to keep our roads from falling apart, so we spend more time winging the snow," Bakken said.

"The roads that still have snow on them are still pretty fragile," he said.

Bakken is proud to say Beaver Creek Township didn't close any roads this winter, and residents didn't have to wait more than a day after a storm for their roads to be cleared.

"Beaver Creek Township taxes are one of the highest in the county, but we seem to think we're giving people what they're paying for," Bakken said.

Still, he said itÕs frustrating to try to keep everyone happy.

"Now we've got so many people who live in the country but expect the same services as those living in town," Bakken said.

Beaver Creek Township hired an extra person part-time this year to help full-time maintainer Bert Kracht keep up.

"If there's anyone who puts his heart and soul into his work, it's Bert, and he gets frustrated when he can't keep up," Bakken said.

"He put in 14-, 16-, and 20-hour days, and on some of those days he'd turn around to find that the wind had blown the road shut behind him."

Darrell Hoeck, chair of Springwater Township, said the snow had a similar effect on the budget there.

"We easily spent twice as much this year as last year," Hoeck said. "In fact, we spent more this year than on the past two years combined. We havenÕt had a snow bill like this since 1996-97."

The good news is, like Beaver Creek Township, Springwater handled the blow with reserves built up from warmer winters.

"We have money laid aside, so if this happens, it can be absorbed as best as possible," Hoeck said.

The numbers are even more striking for Vienna Township. Last year, it spent about $450 on snow removal. This year, the bills are coming in at about $11,500.

"That's a plus for living on the tundra, I guess," said Vienna Township Clerk Bud Rust.

Rust said Vienna Township contracts with Rich Hubbling, Hardwick, for snow removal, but he said some farmers cleared their own roads and billed the township.

Vienna Township had also built up a reserve, but when it contributed $16,839.38 toward a new fire truck last year, it wiped out the surplus.

"We're going to make it, but it's not as easy as it has been," said Vienna Township Clerk Bud Rust.

Since Luverne Fire Department serves so many rural areas, when it purchased a new pumper last year for nearly $150,000, the townships served by Luverne were asked to pay $130,000 of that bill.

Vienna Township is served by Hardwick, Kenneth and Luverne fire departments, but many of its sections are served by Luverne.

For the second year in a row, Vienna Township officials voted to increase the levy by $5,000 (which amounts to 16.66 percent on $30,000).

According to the Rock County Auditor's Office, Vienna Township was the only one to raise its levy during the March annual meetings.

Unlike county and city levies, townships can increase preliminary levies before final certification in September.

"But the way it looks now we're going to need it," Rust said.

Townships tallying bills from winter

By Lori Ehde
As township gravel roads emerge from their icy layers, township officials are adding up the cost of this winter's snow removal to their budget.

Considering higher-than-normal fuel costs, plus longer labor hours, Beaver Creek Township spent nearly 40 percent more on snow removal this year than during a normal winter, according to past township board chair Peter Bakken.

Like many townships, Beaver Creek came into this bad year on a good budget. With two years of mild winters under the belt, the budget held some reserves.

Keeping up with snow removal is costly, but Bakken said it's cheaper than rebuilding roads in the spring.

"Our goal is in the springtime to keep our roads from falling apart, so we spend more time winging the snow," Bakken said.

"The roads that still have snow on them are still pretty fragile," he said.

Bakken is proud to say Beaver Creek Township didn't close any roads this winter, and residents didn't have to wait more than a day after a storm for their roads to be cleared.

"Beaver Creek Township taxes are one of the highest in the county, but we seem to think we're giving people what they're paying for," Bakken said.

Still, he said it's frustrating to try to keep everyone happy.

"Now we've got so many people who live in the country but expect the same services as those living in town," Bakken said.

Beaver Creek Township hired an extra person part-time this year to help full-time maintainer Bert Kracht keep up.

"If there's anyone who puts his heart and soul into his work, it's Bert, and he gets frustrated when he can't keep up," Bakken said.

"He put in 14-, 16-, and 20-hour days, and on some of those days he'd turn around to find that the wind had blown the road shut behind him."

Darrell Hoeck, chair of Springwater Township, said the snow had a similar effect on the budget there.

"We easily spent twice as much this year as last year," Hoeck said. "In fact, we spent more this year than on the past two years combined. We haven't had a snow bill like this since 1996-97."

The good news is, like Beaver Creek Township, Springwater handled the blow with reserves built up from warmer winters.

"We have money laid aside, so if this happens, it can be absorbed as best as possible," Hoeck said.

The numbers are even more striking for Vienna Township. Last year, it spent about $450 on snow removal. This year, the bills are coming in at about $11,500.

"That's a plus for living on the tundra, I guess," said Vienna Township Clerk Bud Rust.

Rust said Vienna Township contracts with Rich Hubbling, Hardwick, for snow removal, but he said some farmers cleared their own roads and billed the township.

Vienna Township had also built up a reserve, but when it contributed $16,839.38 toward a new fire truck last year, it wiped out the surplus.

"We're going to make it, but it's not as easy as it has been," said Vienna Township Clerk Bud Rust.

Since Luverne Fire Department serves so many rural areas, when it purchased a new pumper last year for nearly $150,000, the townships served by Luverne were asked to pay $130,000 of that bill.

Vienna Township is served by Hardwick, Kenneth and Luverne fire departments, but many of its sections are served by Luverne.

For the second year in a row, Vienna Township officials voted to increase the levy by $5,000 (which amounts to 16.66 percent on $30,000).

According to the Rock County Auditor's Office, Vienna Township was the only one to raise its levy during the March annual meetings.

Unlike county and city levies, townships can increase preliminary levies before final certification in September.

"But the way it looks now we're going to need it," Rust said.

Tri-State Auto moves to Highway 75 with LEDA help

By Sara Quam
The Luverne Economic Development Authority met Friday to decide if local businessman Jim Fick should get help in relocating his business.

The answer was yes in the unanimous vote that gave Fick, of Tri-State Auto Sales, a $25,000 forgivable loan.
In essence, the loan is a grant that has to be repaid with interest only if certain conditions aren't met. Portions of the debt will be canceled over a five-year period.

With Fick purchasing the former Schuur Concrete building, next to the China Inn, he will have more lot space and increased visibility for his business.

"We wanted Highway 75 exposure and a concrete parking lot," Fick said.

Fick has operated his car sales business for five years out of leased space from Align Tech and Tire.

The new site appealed to Fick from the start of his sales. In fact, he used the same lot for his first spring sale years ago.

During the LEDA's discussion on the loan, members made it clear that they supported the business move to rid the city of the current blight that's on the site.

LEDA member Mike Engesser said the city isn't in the practice of relocating businesses. "Basically, we're doing this as a South-75 cleanup," he said.

LEDA Director Tony Chladek said in a memo to LEDA members that the project is certainly "in keeping with the vision of the city and LEDA for Main Street and Highway 75."

Fick expects to move to the new location as soon as April and then start the process of cleaning the lot and setting up the office, which has been unoccupied for nine years.

Fick said he's proud of his family business, that is also managed by his wife, Renee Fick.

In addition to his own project, Fick said he's open to the possibilities. "We'll have more office space than we need so we're looking into having a separate business within that space," he said.

Fick has to meet certain conditions by the end of the year:

oRemove the cement block wall on the southwest corner of the building.
oRemove and cover the old windows on the main portion of the building.
oRemove and properly dispose of the silo.
oConstruct a new wall on the south end of the building.
oReplace the outside front on the south side of the building with new tin.
oWainscot the bottom four feet of the building on the front and south sides.
oReplace overhead doors with new doors.
oRemove loose gravel and weeds from parking area.
oInstall signs that comply with city code.
oInstall security lighting.

Prairie Expo proving to be costly venture

By Sara Quam
It's an understatement to say that Prairie Expo's first year of operation fell short of its projected $10 million profits.

Instead of raking in the millions, Prairie Expo is sucking money from cash reserves and the general fund of its owner - the Southwest Regional Development Commission.

Since opening in September, the visitors center has attracted just 30,000 guests. But Grant Lloyd, the Expo's director, said he sees a brighter summer approaching.

"We're starting to see some results from contacts we've made," Lloyd said. "There are good things happening amid all the bad things."

That isn't unusual for a first-year operation, he pointed out.

"Fifty-two percent of the visitors have been from outside the region, and most were traveling to another destination and decided to stop," Lloyd said. "We know we're going to have a good number of travelers as we build an identity."

Lloyd has already booked bus tours and made contacts with other touring companies that could view Prairie Expo as a stopping place.

Lloyd sees positive reactions coming from visitors. He said negative comments about the facility have come exclusively from those who were opposed to the project from the beginning.

"It's important that the project has support from the staff, the board and communities," he said. "We have to make sure that each of the communities is able to utilize the facility."

Modified first-year projections have Prairie Expo getting 300,000 visitors by the end of the summer, including the two busiest travel months.

The bottom line
Even with an optimistic eye to the future, there's still the matter of Prairie Expo using a good share of the SRDC's money in the meantime.

One figure puts Prairie Expo using about half of the SRDC's cash reserves through the winter in addition to what is already set aside for ExpoÕs budget.

Luverne Economic Development Director Tony Chladek said, "The SRDC works on a lot of projects for small communities, and it would be devastating to have the SRDC be affected by this."

The SRDC includes programs like Community Housing and Economic Development, Environment and Land Use, Transportation and the Area Agency on Aging.

The city of Luverne and Rock County each gave a one-time $5,000 donation to Prairie Expo last year. The state financed most of the $7-million facility.

Fund-raising isn't over yet. A new committee, made up of volunteers from the staff and directors, will approach area communities for additional money for marketing this spring.

180 dozen eggs, 113 pounds pancake batter....

Nate Golla, the third generation of Luverne Farm Store Gollas, flips eggs on the griddle during Pancake and Egg Day in the Farm Store's heated shop Saturday. Nate is the son of Gary and Barb Golla and the grandson of George and Vangie Golla. He said more than 1,100 people braved freezing temperatures to stand in line for the store's annual customer appreciation day meal. To feed that many people required 113 pounds of pancake batter, 180 dozen eggs, 2,000 slices of ham, 600 cups of coffee, 22 gallons of orange drink and 20 gallons of milk. "We thank everyone for coming down and joining us for customer appreciation day," Nate said. "All the Farm Store guys enjoyed it."

At right, 21-month-old Jenae Hamann could use a booster seat, but she manages to get almost all the pancakes and eggs to her mouth after her mom, Lisa Hamann, cut them into bite-sized pieces.

Photos by Lori Ehde

Pop bill defeated in Senate

By Sara Quam
Luverne students who enjoy pop and the money it generates will still have access to it for now.

The proposal to restrict soft drink sales in schools was defeated by the Senate Education Committee last week. With a 26-6 vote, the bill's chances were squashed by lawmakers.

It called for an end to the sale of pop on school grounds during the day, and Luverne Student Council President Abbey Franken is glad the bill all but died.

"We get all our money from pop. That would've really hurt us," Franken said.

Soda sales generated about $8,000 for Luverne schools last year. Franken said the school council discussed the bill but took a "wait and see" approach.

Although financial reasons dominated most schoolsÕ opposition to the bill, Franken said it's also one of personal choice. "Without pop, all we have to drink is water."

Luverne Superintendent Vince Schaefer agreed. "Whatever we do with our pop or any other soft drink is up to us." He said state legislators have more important issues to discuss than soda machines, and their votes reflected that.

Critics of the bill said it was an issue of local control and personal choices and responsibility. If schools needed the money and parents and their children thought it was fine to drink pop, the state shouldn't interfere.

Supporters of the bill said it is a public health issue that goes beyond the boundaries of local control and personal choice.

Supporters said beverage companies shouldn't have a stronghold on schools looking for additional revenues.

Others said dental problems and calcium deficiencies would be greatly reduced with less pop available to students.

The Minnesota School Boards Association and the Minnesota Soft Drink Association were major adversaries of the bill, and the only major group in favor of it was the Minnesota Dental Association.

Coca-Cola Co., which has an exclusive contract with Luverne Schools, announced that it is changing its marketing in schools by adding healthier drinks.

Patriots open tourney with win over SV-RL-B in Hills Thursday

By John Rittenhouse
Hills-Beaver Creek opened the South Section 3A Girls' Basketball Tournament by coasting to a 56-27 victory over Sioux Valley-Round Lake-Brewster in Hills Thursday.

The seventh-seeded Patriots dominated play throughout the contest, earning a shot at No. 2 Southwest Christian in the tournament's quarterfinals (see related story elsewhere in the sports section).

SV-RL-B, which entered the tournament as the 10th seed, couldnÕt answer an early H-BC challenge that set the tone for the game.

H-BC scored the game's first six points and led by 11 ponts three times in the first quarter before Jody DeNoble drained a field goal with 31 seconds left to make it a 20-7 difference at the break.

Things didn't get any better for the Raiders in the second quarter, when H-BC went on a 15-4 scoring run to open a 35-11 halftime lead.

Senior Shanna Tilstra, who led H-BC with 19 points and four assists, helped the Patriots build a 24-point halftime cushion by scoring seven points in both the first and second stanzas.

H-BC iced the game by outscoring SV-RL-B 13-8 in the third quarter to make it a 29-point (48-19) difference.

Both teams scored eight points in the fourth quarter.

H-BC, which was aided by 26 turnovers by the Raiders, received 10 points and nine rebounds from Erin Boeve. LaDonna Sandstede contributed four steals to the cause for the 11-12 Patriots.

Box score
C.Tilstra 1 0 0-0 2, Olson 0 0 2-3 2, Sandstede 2 0 3-4 7, Rentschler 0 0 0-2 0, S.Tilstra 3 3 4-5 19, Broesder 3 0 0-0 6, DeNoble 2 0 0-0 4, Boeve 4 0 2-2 10, DeHaan 0 0 0-0 0, Arp 1 0 0-0 2.

Team statistics
H-BC: 21 of 64 field goals (33 percent), 11 of 15 free throws (73 percent), 33 rebounds, 14 turnovers.
SV-RL-B: 10 of 44 field goals (23 percent), seven of 15 free throws (47 percent), 27 rebounds, 26 turnovers.

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