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MINUTES FOR THE HUGO CITY COUNCIL MEETING OF AUGUST 31.1998 <br />The meeting was convened by Mayor Fran Miron at 9:10 a.m. <br />PRESENT: Arcand, Barnes, Goiffon, Leroux, Miron <br />City Administrator, Robert Museus <br />City Engineer, Tom Angus <br />Finance Director, Ron Otkin <br />The purpose of this meeting was to review the draft 1999 budget prepared by the City's <br />Finance Director, and discuss the amount to be set as the City's maximum 1999 tax levy. <br />Ron Otkin presented a draft 1999 budget for the Council's consideration, and explained <br />how the budget was developed, line item by line item. Discussion was held regarding <br />lowing Council salaries to offset the increased cost for the new Fire Hall. <br />Miron made motion, Leroux seconded, to have staff present an ordinance to the Council <br />reducing the Mayor and Council member's salaries by 15%. <br />All aye. Motion Carried. <br />Substantial discussion was also undertaken regarding the way budget cuts made by the <br />Council during 1998 are reflected in the budget for 1999, and how they will be <br />represented on the tax statement provided to property owners. The City Administrator <br />explained that the City makes two levies each year: one for operations and maintenance <br />and one for debt service. The budget cuts made by the Council to fund the new Fire Hall <br />show up on the operations and maintenance account, reducing the requirements for the tax <br />levy in this area. As a matter of form, the tax levy for debt service will increase to account <br />for the bonding for the new Fire Hall, increasing the tax levy for debt service. Reduction <br />in the operations and maintenance levy, plus the increase in the debt service levy balance <br />out to no tax increase for the Fire Hall. This will not be clear on the property tax <br />statements. In order to make the Council's actions and intent clear: <br />Leroux made motion, Goiffon seconded, to transfer $64,356 from the City's capital <br />improvement account to debt service account to avoid increasing the 1999 property tax <br />levy for debt service. <br />All aye. Motion Carried. <br />Debra Barnes left the meeting at 11:55 a. m. <br />Following discussion on the proposed budget, the City Administrator provided the <br />Council worksheets for the Council to fill out indicating their priorities for capital <br />improvements during the next five years, and requested they be returned to him on <br />September 8th. <br />