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14669 Fitzgerald Avenue North, Hugo, MN55038 • (651) 762-6300 • www.ci.hugo.mn.us <br />TO: Honorable Mayor and Members of the City Council <br />FROM: Ronald J. Otkin, Finance Director <br />DATE: For the Council Meeting of September 5, 2017 <br />RE: Preliminary Tax Levy Payable in 2018 <br />REQUESTED COUNCIL ACTION <br />Motion to adopt Resolution Approving Preliminary Tax Levy Payable in 2018. <br />At the mid -year budget workshop it was the consensus of the City Council that the 2018 preliminary tax <br />levy provide for no change in the urban tax rate. The total proposed 2018 property tax levy of $6,589,302 <br />keeps the urban tax rate at 36.323% of tax capacity while the rural tax rate will decline by 0.24%. <br />The proposed tax levy is broken down into the following major categories: <br />Pay 2018 <br />Proposed <br />Required Levies <br />Debt Service Levy <br />$ <br />187,671 <br />Tax Abatement Levy <br />$ <br />437,265 <br />$ <br />624,936 <br />Discretionary Levies <br />General Fund Levy <br />$ <br />4,785,901 <br />Park Improvements <br />$ <br />90,554 <br />Firefighter's Relief Levy <br />$ <br />14,957 <br />Equipment Purchasing Levy <br />$ <br />111,879 <br />Mill and Overlay Levy <br />$ <br />64,909 <br />Capital Improvement Levy <br />$ <br />539,657 <br />Stormwater Levy <br />$ <br />356,509 <br />$ <br />5,964,366 <br />Certified Property Tax Levy <br />$ <br />6,589,302 <br />Debt Service Tax Levies <br />This levy is required under the terms of various bondholder agreements. These taxes are used to make <br />principal and interest payments on general obligation bonds issued by the city. The total levy for debt <br />service in 2018 is $187,671. <br />