2017.09.05 CC Packet - Laserfiche WebLink

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2018 Proposed Tax Levy Page 3 Mill and Overlay Levy This levy (diverted from the CIP levy in 2012) is designed to provide additional funds for annual mill and overlay projects that will replace the annual seal coating program. These funds are also used for crack filling and traffic striping. The proposed levy for next year is $64,909. Capital Improvement Levy This levy, first instituted in 2006, is used to defray a portion of the city's share of street reconstruction projects. The proposed levy for 2018 is $539,657. When combined with state construction aid, these funds will allow us to continue improving our network of streets without the need to issue additional debt. Storm Water Improvement Levy This levy was discontinued in 2010 due to the Great Recession and the need to lower our overall tax levy; however, since then the city has incurred costs in constructing water reuse projects and the fund balance has dropped below what is needed to eventually maintain our system of drainage ponds. Staff recommends a tax levy of $356,509 for pay 2018. Certified Property Tax Levy To recap, the total amount of property taxes to be certified to the county for inclusion in the truth -in - taxation notices amounts to $6,589,302. This represents an increase of $662,823, the particulars of which have been identified above. Fiscal Disparities Fiscal Disparities is a program designed by the state legislature to distribute a portion of growth in commercial and industrial tax values to cities in the seven -county metropolitan area. Historically, the City of Hugo has been a "winner" in that we receive more value from the pool than we contribute. Washington County has certified the payable 2018 amount of $643,288, an increase of $40,212 from the previous year. This amount serves to lower the total property tax dollars paid by residents of the city. Pay 2018 Proposed Certified Property Tax Levy $ 6,589,302 Less: Fiscal Disparities $ (643,288) Local Portion of Levy $ 5,946,014