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2019 Proposed Tax Levy <br />Page 2 <br />Tax Abatement Levy <br />This levy contains two abatement projects. The first, in the amount of $327,735, will be used to pay the <br />principal and interest on tax abatement bonds issued to defray the city's share of the CSAH 8 <br />Reconstruction Project. The White Bear Lake School District is participating in the abatement program <br />and will contribute the balance needed to fully fund the bond obligations. The second abatement project, <br />in the amount of $102,795, is for bonds sold to finance the acquisition of Irish Avenue Park and the <br />construction of the Hanifl Park Shelter at Rice Lake Park. Taxes being abated are generated from parcels <br />abutting these two areas. <br />General Operating Levy <br />The levy for general operating purposes is $5,370,029, an increase of $499,004 from the previous year. <br />This levy is used, along with non -property tax revenues, to fund general government, public safety, public <br />works, and other city operations. The increase is needed to balance the general fund with no structural <br />deficit (i.e. transfers from other funds). <br />The increase in this levy will be used primarily for the following purposes: <br />The proposed tax levy contains a $200,000 appropriation to provide for flat tax rate stabilization should <br />the taxable market value of property decline due to an economic downturn. It also provides for step <br />increases, a 3% cost -of -living adjustment, and health insurance premiums for eligible employees for the <br />2019 calendar. <br />Fire Relief Levy <br />This levy is used to accumulate funds to meet the city's future pension obligations for the Hugo <br />Firefighter's Relief Association. Taxes are levied in an amount equal to the PERA employer percentage as <br />applied to total fire department wages and salaries. These funds are placed in a special revenue fund and <br />can be only be used to make mandatory contributions to the pension fund. The levy for 2019 is $16,112. <br />Equipment Purchasing Levy <br />This levy had been temporarily suspended for two years as surplus funds were transferred in from the <br />General Fund and were used to replace big ticket equipment items in the Public Safety and Public Works <br />Departments that exceeded their useful life. These items include plow trucks, pickup trucks, dump trucks, <br />and firefighting vehicles. This levy, in the amount of $111,879, was reinstated for 2018 and will remain at <br />this level for 2019. <br />