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City Council meeting of September 5, 2001 <br />Page 9 <br />REQUEST TO APPROVE PROPOSED 2002 CITY LEVY <br />Finance Director Ron Otkin prepared the Council's proposed 2002 City budget and preliminary City tax <br />levy for payable 2002, and it reflects a dramatic change that the 2001 Minnesota State Legislature has <br />made to the state's property tax system. The City's homestead and agricultural credit aid (HACA) was <br />eliminated and the City will lose $226,745 in revenues for the City's 2002 budget. The legislature <br />increased the local government aid (LGA appropriation), but the City of Hugo had an increase of only <br />$18 in its LGA for 2002. In budgeting for 2002, the finance department and the community <br />development department carefully reviewed the estimated revenues from the home building and lowered <br />the estimated revenues more than 58%, from 285 housing starts in 2001 to 120 housing starts in 2002. <br />This is a direct result of the residential moratorium. The tax levy increase requested by staff is <br />comprised of lost state aid and expected reductions in building activity. The proposed budget <br />incorporates the fiscal policy adopted by the Council, which states, "Property taxes shall be levied to the <br />limit when the City is subject to statutory maximums". The budget calls for an overall spending increase <br />of just 1.65%; however, the total tax levy will be increased by 37.89%. According to state statute, the <br />Council must adopt a preliminary tax levy and certify it to the County on or before September 14h. <br />Miron made motion, Haas seconded, to adopt RESOLUTION 2001- 53 APPROVING PRELIMINARY <br />TAX LEVY PAYABLE IN 2002. <br />VOTING AYE: Granger, Haas, Miron <br />VOTING NAY: Becky Petryk <br />Motion Carried. <br />NOR -LAKES RAIL CARS <br />Staff will make a report at the City Council meeting of September 17, 2001 regarding the storage of rail <br />cars on tracks adjacent to TH61 and Nor -Lakes. <br />TH61 CLOSING FOR STORM WATER CONSTRUCTION <br />City Engineer Dave Mitchell reported that TH61 would be closed from 10:00 am on September 14'h until <br />10:00 pm, September 16'h. MnDOT will be directly involved in the detouring of traffic, and the HFD <br />has been notified of the closure. This closure is needed for the open cutting of TH61 for the installation <br />of storm water pipe. <br />ADJOURNMENT <br />Haas made motion, Petryk seconded, to adjourn at 10:00 pm. <br />All aye. Motion Carried. <br />Mary Ann Creager, City Clerk <br />i <br />