2016.12.05 CC Minutes - Laserfiche WebLink

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Hugo City Council Meeting Minutes for December 5, 2016 Page 4 of 6 Jan Good, 12581 Homestead Drive, asked if the roads would stay the same widths and if the mailboxes would remain in the same place. Mark explained their road would remain the same width, and mailboxes will likely stay in place or temporary removed during reconstruction. Miron made motion, Klein seconded, to approve 2016-39 A RESOLUTION ORDERING IMPROVEMENT AND ORDERING THE PREPARATION OF PLANS AND SPECIFICATIONS FOR THE PROPOSED NORTH SUNSET LAKE AREA STREET IMPROVEMENT PROJECT All Ayes. Motion carried. Public Hearing on City Budget and Tax Lew State statutes require the City Council to hold a public hearing on the proposed city budget and tax levy for the 2017 fiscal year. The hearing was scheduled for this evening. Finance Director Ron Otkin explained that the City tax rate is considerably lower than the statewide average. He illustrated this by saying the average statewide tax on a $222,500 homestead is $954.99, and the same home in Hugo would be taxed at $745.66. He stated that despite the fact that the City of Funkley, population 5, receives Local Government Aid from the State, Hugo in one of 84 cities and towns that do not receive any LGA. He talked about the increase in market values and about the Council's desire to maintain a flat tax rate. To maintain a flat tax rate, the tax levy cannot exceed $5,926,479. Ron stated that the tax levy for Debt Service and Tax Abatement is $606,793 and will remain in that range until 2019. After that approximately $550,000 can be redirected to the street improvement program. He stated that city debt declined by $1.57 million and remains manageable. Otkin reviewed discretionary levies including the park improvement levy, sealcoating levy, firefighter relief levy, and equipment replacement levy. The largest portion of the tax levy is for general operating purposes. He explained there are funds in the proposed budget for a new investigator position in our law enforcement contract. Funding has also been included for a Public Works apprentice, updates to the Comprehensive Plan, and a card reader key system for City Hall. As a placeholder, funds have been earmarked for a firefighter health and wellness program, the details of which will be brought back to the Council for consideration. He concluded by saying the proposed tax rate for Hugo is 36.323%. He encouraged all residents to familiarize themselves with several property tax refund and deferral programs administered by the State Department of Revenue. Otkin stated that the budge satisfies the funding priorities established by the City Council. Mayor Weidt opened the public hearing, and there were two residents who spoke. Dan Deurloo, 7306 137' Street North, said he appreciated the budget was well run. He had concerns that his property increased by more than 3.9 % and wondered if it will continue to increase. Bryan explained the Board of Equalization where he can appeal his valuation.