2017.08.22 CC Minutes - Midyear Budget Workshop

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MINUTES FOR THE HUGO CITY COUNCIL MID-YEAR BUDGET REVIEW WORKSHOP MONDAY,AUGUST 22, 2017 Mayor Weidt called the meeting to order at 3:30 p.m. PRESENT: Haas, Klein, Miron, Petryk, Weidt ABSENT: None STAFF PRESENT: City Administrator Bryan Bear, Finance Director Ron Otkin, Accounting Clerk Anna Wobse, and City Clerk Michele Lindau 2018 Budget Presentation Finance Director Ron Otkin began by stating that the surplus of$329,109 from 2016 will allow the City to do some things that were talked about last year but did not make it into the budget, specifically the replacement of the fire hall roof, a space needs study, and the start of a building maintenance fund. Ron talked about the on-going practice of contingency funding. Market values have increased by 10.1%, and Washington Count estimates the City's tax capacity will increase 11.7%. Ron acknowledged that the Council would like no increase in the urban tax rate, and the Finance Department would like to see a balanced budget with no structural deficit. He explained the Debt Service Levy for 2018 is $624,936. By 2020, the City will have additional levy capacity for road projects, but for now, the CIP Levy will remain at $539,637. He recommended reinstating the stormwater levy to pay for water reuse projects and future pond maintenance. He also covered the levies for parks and sealcoating. He explained that the levy for firefighter's relief will be banked as their funding schedules do not require a mandatory contribution from the City next year. Ron reviewed the general fund budget, which contains a 2% cost of living adjustment and step increases totaling $47,929. Also, salary market data showed the City's utility billing clerk should be moved to a higher paygrade. He recommend the position be increased from pay grade four to five. Also budgeted was an hourly $.50 per year increase for firefighters who are between five and ten years of service, as part of the fire chief s retention program. Health insurance has increased by 6% due to age of employees and cost of health care, but there will be no changes in the employees' deductibles. Law enforcement will increase in 2018 due to a full year of having an investigator. This position was added midyear in 2017. With these increases equaling 2.36%, the General Operating Budget would be $5,329,296. Finance Director Otkin proposed an overall tax levy of$6,589,302 for 2018, resulting in a balance budget and no change in the urban tax rate.