Agenda Packets - 1989/07/24 - Laserfiche WebLink

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JN To a city's levy limit may be added special levies for City debt. A levy of $4,200 is required to assist in paying for the 1976 Advance Refunding Bonds and is non discretionary. The discretionary levy available is a debt levy to pay for Capital Notes or Certificates of Indebtedness that may be issued to pay for public safety, street maintenance and other Capital items. The City has issued these in the past. In 1989, 166,260 use levied to pay for snow removal equipment. The second draft of the proposed 1990 Budget recommended that $67,082 be levied to pay for squad cars and street maintenance equipment. This second draft of the 1990 Budget proposes a total levy of 01,072,929 which is 835,087 less than the 19e9 levy of $1,108,016. This levy would be allocated amongst City funds as follows: PROPOSED 1990 PROPERTY TAX LEVY SECOND DRAFT 1990 BUDGET Levy Subject to Limitation: General Fund: 8 970,649 Forestry Fund: 30,998 Total Subject to Limitation: $1,001,647 Special Levies - Levy of Debt: Advance Refunding Bonds s 4,200 Certificates of Indebted- ness 67,082 Debt Levies s 71,282 Total Proposed Levy $1,072,929 Staff recently attended a seminar on tax laws and learned that the Council ha: a great deal of flexibility in the area of debt levies. Present law permits a debt levy to pay for Capital Notes and Certificates of indebtedness. Certificates and Notes may be issued to purchase: 1) public safety equipment 2) street construction and maintenance equipment 3) ambulance equipment 4) other capital equipment having a useful life at least as long as the term of the certificates or notes The Notes and Certificates may be issued for a term of not more than five years. Both the Certificates and the Notes are subject to the City's debt limit. The debt limit states that the City may not have outstanding general obligation debt of more than 2% of the market value of property within the City. The City's present debt limit