New city leader hints at changes

By Sara StrongThe Luverne City Council covered a number of budget items Tuesday that City Administrator Greg LaFond will pursue in further research.LaFond, who started the first week in September, is looking at the city with a fresh perspective, and he pointed out a number of initial observations for the council to consider.He said, "Our objective is to get you to focus on long-term financial planning, rather than this short-term crisis."The main topic of discussion Tuesday was the possibility of Luverne contracting for refuse and recycling collection, instead of the city doing it."It’s not my intent to suggest anything at this point to change to privatization," LaFond said. "… We’re not committed to privatization."The City Council directed LaFond to continue researching the cost of a private garbage and recycling hauler with the possibility of the city issuing a request for proposals, inviting private companies to bid for the service.Council member David Hauge said he hoped the request for proposals could include stipulations for service quality with financial penalties to keep citizens comfortable with any upcoming change.Councilman Pat Baustian said, "I think we owe it to our taxpayers to see what’s out there."Many cities are considering the same thing.Luverne’s financial problems from state cuts aren’t the only crunch in the budget. The revenue from refuse and recycling collection should pay for the program. However, it’s losing money each year. By 2009, the collection services will be operating at a projected $134,350 loss.To make sure that doesn’t happen, the city will either have to raise rates significantly, cut services or change the entire way things are done — which is what LaFond is researching.Currently, residential fees for collection and recycling are $12.50 per month. That could increase to $19 per month by 2009 if the city continues as it is now.LaFond said the council may get enough feedback from citizens that they want the department to stay the same and that increased fees are worth it. Then there will be no requests for proposals to take over the city service. (If the city does advertise for bids, none have to be accepted after they’re received.)In the meantime, the city has some preliminary research on refuse and recycling collection.
Cost per capita in Luverne for the garbage services is $68.56; in Pipestone is $42.11; in Benson is $37.67; in Chisholm is $82.91; in Dilworth is $76.46; in LaCrescent is $39.96. (All listed cities have comparable populations.)
Savings to the city if the service is private include supervision and support staff as well as the actual workers who would be eliminated from Public Works.
The 2004 refuse and recycling budget includes $40,000 for depreciation expenses on major equipment. In addition, the annual budget includes $10,000 per year for equipment replacement. Annual equipment maintenance for 2004 is $22,500.
If the service is privatized the city would require the private provider to purchase existing equipment from the city. That would net $85,000 to $100,000 per year.
The city of Luverne pays a tipping fee of $65 per ton to transport waste through the county. Private haulers have reported lower tipping fees of $28 per ton.Hauge said, "I don’t want to have too much change too fast," pointing out that employee morale, relations with the public and partnerships with the county are delicate.LaFond said the discussion at this point is just financial, not about policy or politics, with no decisions made."We won’t know if we don’t look," Councilman Tom Martius said.Other items on the table for future discussion were:
Combining dispatching services for law enforcement with other counties in the area for a cost savings.
A fire hydrant fee. Property taxes normally generate all funds for fire protection, but tax exempt properties (such as the school, non-profits and churches) still get fire protection. A small monthly fee on utility bills could generate up to $25,000 a year.
A street lighting utility fee. This has been previously discussed by the City Council and would involve $1.25 to $2.25 fee on utility bills to fund future street light projects, which are costly for the city to pay at once. The city anticipates no increase in electric rates for this or next year.
Reviewing assessing contract with the county. Currently, LaFond said the city of Luverne pays 77 percent of the county assessor position with its fees. The county charges an inconsistent amount for assessing: Magnolia pays $625 for 110 parcels and Hardwick pays $1,500 for 102 parcels.
Possibility of implementing a fine for false fire alarms to cover the cost of responding.
Utilize more volunteers at the library and increase circulation.
Review use of Pool and Fitness Center by day and time of day.
Suggest a reduction of juvenile arrests by 25 percent.