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2020 Proposed Tax Levy <br />Page 2 <br />General Operating Levy <br />The levy for general operating purposes is $5,650,000, an increase of $280,974 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 />2020 calendar. <br />Storm Water Improvement Levy <br />This levy is needed to fund water reuse projects and improvements to our drainage systems, including the <br />repair and/or replacement of catch basins. Eventually funds will be needed to maintain our system of <br />drainage ponds. This levy is in the amount of $278,788. <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 2020 is $18,002. <br />Equipment Purchasing Levy <br />This levy, in the amount of $221,000, is needed to replace big ticket equipment items in the Public Safety <br />and Public Works Departments that exceeded their useful life. These items include plow trucks, pickup <br />trucks, dump trucks, and firefighting vehicles. <br />Park Improvement Levy <br />This levy, first instituted in 2007, is used to finance capital improvements to the city's neighborhood park <br />system. The proposed park improvement levy for next year is $92,000. <br />