2020.09.21 CC Packet - Laserfiche WebLink

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2021 Proposed Tax Levy Page 3 Park Improvement Levy This levy, first instituted in 2007, is used to finance capital improvements to the city’s neighborhood park system. The proposed park improvement levy for next year is $92,000. Fire Relief Levy This levy is used to accumulate funds to meet the city’s future pension obligations for the Hugo Firefighter’s Relief Association. Taxes are levied in an amount equal to the PERA employer percentage as applied to total fire department wages and salaries. These funds are placed in a special revenue fund and can be only be used to make mandatory contributions to the pension fund. The levy for 2021 is $19,705. 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 $8,916,507, 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 2021 amount of $852,056, an increase of $84,391 from the previous year. This amount serves to lower the total property tax dollars paid by residents of the city. Pay 2021 Proposed Certified Property Tax Levy $ 8,916,507 Less: Fiscal Disparities $ (852,056) Local Portion of Levy $ 8,064,451 Taxable Market Value and Tax Capacity The county tax department has released a preliminary estimate of taxable market value and tax capacity data for next year. The county estimates an increase in the total tax capacity of 6.8%. These numbers will most likely change when the county releases “final” numbers prior to the budget adoption meeting scheduled for December 7th.