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Hugo City Council Minutes for December 7, 2009 <br />Page 5 of 10 <br />section that addressed the application process for applying for a burning permit. Councilmember <br />Petryk pointed out a conflict between the ordinance and permit application in regard to burning <br />leaves. <br />Haas made motion, Klein seconded, to table the item to allow staff to make minor wording <br />changes, include a section on the permit application process, and make changes to the permit <br />application. <br />All Ayes. Motion carried. <br />Approve Resolution Approving 2010 Salary and Reimbursement Levels <br />Councilmember Haas removed this item from the Consent Agenda. During the 2010 budget <br />process, the City Council indicated its desire to hold the City's salary matrix at 2009 levels with <br />no cost of living adjustments but to grant step increases to those employees who have not yet <br />reached their pay grade maximums. The proposed resolution is based on a zero percent <br />adjustment to the city's salary matrix; however, the net increase due to step adjustments amounts <br />to $24,154. Although this represents an overall increase of 1.81 %, the employees will now be <br />responsible for annual health insurance deductibles of $1,600 for single coverage and $3,200 for <br />employee and dependent coverage. As a result, the city will save $5,342 in insurance premiums <br />while the employees will be exposed to an aggregate deductible of $40,000. More importantly, <br />the adjustments will continue to allow the City to be in compliance with the State of Minnesota <br />Pay Equity Statutes. The law specifically requires that cities develop and administer <br />compensation systems that establish and maintain equitable relationships between female - <br />dominated and male -dominated job classes. The City's compensation system was found to be in <br />compliance by the Minnesota Department of Employee Relations in October, 2003, and was <br />reviewed again in January, 2008 with results pending. <br />Haas make motion, Petryk seconded, to adopt RESOLUTION 2009-42 SETTING 2010 <br />SALARIES FOR CITY EMPLOYEES AND ESTABLISHING EMPLOYEE <br />REIMBURSEMENT LEVELS. <br />All Ayes. Motion carried. <br />Approve 2010 City Budget and Tax Lew <br />On September 8, 2009, the City Council adopted a preliminary 2010 tax levy and scheduled a <br />public budget hearing for this evening. The date and location of the hearing was certified to <br />Washington County and is contained in the parcel specific tax notices sent out by the county. <br />Finance Director Ron Otkin provided a final budget and tax levy presentation comparing the City <br />of Hugo's urban tax rate of 34.443% and rural tax rate of 31.258% with the average City rate of <br />all Minnesota cities of 36.960% and the average of 30 comparative cities in the metro area of <br />34.650%. Ron also pointed out that, unlike many other cities, Hugo receives no LGA. City <br />Assessor Frank Langer explained that though rural market values were down, agriculture market <br />values were up significantly due to law changes. Seventy-seven parcels in Hugo lost their <br />Agricultural classification and 34 properties lost their Green Acres designation. <br />