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tax rate drops Hugo's ���.�,
<br /> HUGO —While Hugo residents may be breathing a
<br /> little easier about their pending tax burdens, commercial
<br /> business owners are feeling the pinch — even as the city's 1144 ye
<br /> urban tax rate is poised to decline slightly in 2013.
<br /> The Hugo City Council adopted a general operating 1
<br /> tax levy of$3,728,896 at its Dec.3 meeting.When special
<br /> levies are added in, the city's total tax levy in 2013 will be /
<br /> $4,749,083,a 4.24 percent decrease from last year.
<br /> Nevertheless,it was small consolation to two business
<br /> owners who addressed the Hugo City"Council during a `/
<br /> public comment period Dec.3. ;'�G� /vim ��i� �•¢�
<br /> "The market value stayed the same, (but) taxes went
<br /> up,"said Glen Kothe said of his property at 17285 Forest c�
<br /> Blvd. "In other words, it's picking on the business people ���:�y��� �•/--/,'
<br /> again."
<br /> —and farmers—a
<br /> g /��ri �ra✓ �'e�t.+ief �c��f�issie•;9N�2 �.�.� ,iy�.��,.��
<br /> Jeff Olson, owner of J. Olson Tool Inc.which builds G f
<br /> plastic injection molds,said he's experienced a 30-40 per- evI'v /e je�l a G: er yt /��i. ,�o..yr�� C' 7�►'�/
<br /> cent decline in sales."Businesses are suffering,"he said.It's �� �
<br /> getting harder and harder for me to stay in Hugo." X fA/is .0 14
<br /> In contrast, 93 percent of the city's residential home- delay the replacement of the former community develop- merit purchases by 2016,to the tune of$747,500.
<br /> stead
<br /> dcent of them$e n fact, see theiracity-taxes 0drop by merit assistant,who resigned to take another position. An Not to worry: the finance director said the $400,754
<br /> P y
<br /> 1 across-the-board cost-of-living increase of 4.5 percent was budget surplus from 2012 was just transferred into the
<br /> more than 5 percent. also implemented for 2013, Finance Director Ron Orkin capital equipment fund for that purpose where,combined
<br /> Not so the city's commercial parcels which,because of said,although the amount being spent on city salaries will with $336,736 already in the fund, those needs are now
<br /> the legislature's new Homestead Market Value Exclusion decrease by more than 6 percent next year, fully funded.
<br /> Program,have shouldered more of the tax burden as home "It's the first adjustment to the salary matrix for cost of Orkin credits his somewhat unorthodox approach
<br /> market values have declined,Mayor Fran Miron said. living since 2009,"he said.There will be no step increases to city finance planning for the fact that in the past two
<br /> "The other tax classes that make up the other 32 this year, however. "Our adjustments are intended to keep decades, there was only one year where the city did not
<br /> percent of the tax classifications are seeing significant in- pace with the general market." achieve a budget surplus at year-end.
<br /> creases in property taxes, even though our levy is down," "Our budgeting technique over the last 22 years is to
<br /> the mayor said. conservatively estimate revenues combined with what I call
<br /> n er the program,as the value of a qualifying home- HUGO FAST FACTS&FIGURES contingency budgeting,'" Orkin explained. "This means
<br /> stead property drops, a greater percentage of the property we allocate monies in each operating budget for items that
<br /> is excluded from taxation. Even when cities lower their Total debt service levy for 2013 $776,430 may or may not occur.It's much easier to cover an expendi-
<br /> tax rate, more of the tax revenue pie comes from taxpay- ture if funds have already been set aside for it."
<br /> ers whose property is not partly shielded by the exclusion Capital equipment funding needs through 2016 $737,000 Standard&Poor called it the method"favorable tool"
<br /> program. Bonded debt/capita,2010 $740 in issuing the city's last credit rating report,giving the city
<br /> In Hugo, the tax on a median residential homestead State average bonded debt/capita,2010 $,891 a long-term bond rating of AA+.
<br /> with a market value of$190,900 would be $696.75, Or- Hugo LGA received $0
<br /> kin said, 16 percent less than the average tax on the same
<br /> market value homestead among 30 cities in the 7 county Average LGA paid/city,statewide $498,520
<br /> metro area($826.02) and 21 percent less than the average 2012 general fund surplus $400,754 HUGO'S URBAN TAX RATES
<br /> tax among all 853 cities in the state ($883.10).
<br /> The city lost$46 million in market value in 2012,rep- 2003 38.762% 2009 34.443%
<br /> resenting a loss of 3.74 percent in tax capacity. 2004 35.966% 2010 34.274%
<br /> A reduction was also made in the park planning and 2005 35.931% 2011 34.236%
<br /> Budget declines,2012 surplus programming budget.
<br /> 2006 35.826% 2012 36.498%*
<br /> The city's proposed 2013 budget of$4,219,966 is 7.8 The city's public works budget will grow in 2013 by 2007 35.144% 2013 36.467%
<br /> percent lower than in 2012. 4.3 percent due to increases in the cost of equipment rent- 2008 34.941%
<br /> An R 9 nerrenr rednrrinn in 2013 veneral vnvernment als.motor fuels,salt/sand,and seasonal hires. * Tha naw HnmP0Pne1 Mnrlrot vnh„ r,,.,...:
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