2017.07.17 CC Packet - Laserfiche WebLink

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CITY OF HUGO, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS The City of Hugo's total bonds, certificates and notes payable decreased by $1,570,000 during the current fiscal year. A more detailed breakdown of these obligations can be found in Note 3:D., beginning on page 49. The City of Hugo maintains an AA+ bond rating on its general obligation bonds from Standard and Poor's. Economic Factors and Next Year's Budgets and Rates • The unemployment rate for the City of Hugo (Washington County) ended 2016 at 3.4 percent, up from 3.0 percent a year ago. This compares favorably to the State of Minnesota average unemployment rate of 4.1 percent and the United States average rate of 4.7 percent. • Hugo continues to see new construction growth, primarily in residential properties. Although the city's total market valuation of existing properties declined 2.3% for taxes payable year 2016, new construction added 0.9%, limiting the overall decline to 1.4%. All of these factors were considered in preparing the City of Hugo's budget for the 2017 fiscal year. To deal with both cycles in the economy and to plan for future capital expansion and capital acquisitions, the city routinely puts aside resources. The City will continue to monitor developments at the state level that may impact city funding or the City's long term planning. Continued State budget deficits, legislative inactivity or additional State mandates imposed on the city will have an impact on future tax rates and the level of services provided to citizens. Requests for Information This financial report is designed to provide a general overview of the City of Hugo's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Office of the Finance Director, 14669 Fitzgerald Avenue North, Hugo, MN 55038. 14