2016.09.19 CC Packet - Laserfiche WebLink

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2017 Proposed Tax Levy Page 2 Tax Abatement Levy This levy contains two abatement projects. The first, in the amount of $199,795, will be used to pay the principal and interest on tax abatement bonds issued to defray the city's share of the CSAH 8 Reconstruction Project. The White Bear Lake School District is participating in the abatement program and will contribute the balance needed to fully fund the bond obligations. The second abatement project, in the amount of $104,288, is for bonds sold to finance the acquisition of Irish Avenue Park and the construction of the Hanifl Park Shelter at Rice Lake Park. Taxes being abated are generated from parcels abutting these two areas. General Operating Levy The levy for general operating purposes is $4,608,497, an increase of $295,458 from the previous year. This levy is used, along with non -property tax revenues, to fund general government, public safety, public works, and other city operations. The increase is needed to balance the general fund with no structural deficit (i.e. transfers from other funds). The increase in this levy will be used primarily for the following purposes: Add investigator/deputy position in the law enforcement contract effective January 1, 2017. Add apprentice position in the street department budget effective January 1, 2017. Provide for step increases and a 2% cost -of -living adjustment for full-time staff effective January 1, 2017. Fire Relief Levy This levy is used to accumulate funds to meet the city's future pension obligations for the Hugo Firefighter's Relief Association. Taxes are levied in an amount equal to the PERA employer percentage as applied to total fire department wages and salaries. These funds are placed in a special revenue fund and can be only be used to make mandatory contributions to the pension fund. The levy for 2017 is $13,742. Equipment Purchasing Levy This levy has been temporarily suspended (for one year). Funds in the amount of $255,686 will be transferred in from the General Fund and will be used to replace big ticket equipment items in the Public Safety and Public Works Departments that have exceeded their useful life. These items include plow trucks, pickup trucks, dump trucks, and firefighting vehicles. Park Improvement Levy This levy, first instituted in 2007, is used to finance capital improvements to the city's park system. The original levy of $296,000 has been reduced by the amount needed to finance the abatement program referred to above and fund park planning and recreational programming in the general operating fund. The proposed park improvement levy for next year is $94,923.