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CS <br />CITY OF <br />EST. 1906 <br />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 16, 2019 <br />RE: Preliminary Tax Levy Payable in 2020 <br />REQUESTED COUNCIL ACTION <br />Motion to adopt Resolution Approving Preliminary Tax Levy Payable in 2020. <br />At the mid -year budget workshop it was the consensus of the City Council that the 2020 preliminary tax <br />levy provide additional funds for the potential issuance of Tax Abatement Bonds to finance improvements <br />to Lions Park and for the potential issuance of Capital Improvement Bonds to finance improvements to <br />the Public Works Facilities. The total proposed 2020 property tax levy of $8,313,784 will increase the <br />urban tax rate to 39.221% of tax capacity while the rural tax rate will increase to 35.329% of tax capacity. <br />The proposed tax levy is broken down into the following major categories: <br />Required Levies <br />Debt Service Levy <br />$ <br />63,235 <br />Discretionary Levies <br />General Fund Levy <br />$ <br />5,650,000 <br />Stormwater Utility Levy <br />$ <br />278,788 <br />Firefighter's Relief Levy <br />$ <br />18,002 <br />Equipment Purchasing Levy <br />$ <br />221,000 <br />Park Improvement Levy <br />$ <br />92,000 <br />Future PW Facility Bonds <br />$ <br />274,626 <br />Future Lions Park Abatement Bonds <br />$ <br />556,133 <br />Capital Improvement Levy <br />$ <br />1,160,000 <br />Total Discretionary Levies <br />$ <br />8,250,549 <br />Total Certified Tax Levy <br />$ <br />8,313,784 <br />Debt Service Tax Levies <br />This levy is required under the terms of the 2011 Improvement Bond bondholder agreement. These taxes <br />are used to make principal and interest payments on general obligation bonds issued by the city. The <br />total levy for debt service in 2020 is $63,235. <br />