2017.12.04 CC Minutes - Laserfiche WebLink

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Hugo City Council Meeting Minutes for December 4,2017 Page 3 of 5 Approve Pay Request No.1 to Peterson Companies for the Waters Edge Stormwater Reuse Prosect Peterson Companies, Inc., had submitted Pay Request No. 1 for work done on the Waters Edge Stormwater Reuse Project. City Engineer Mark Erichson and Senior Engineering Technician Steve Duff had reviewed the Pay request and found it satisfactory for work done to date. Adoption of the Consent Agenda approved the Pay Request to Peterson Companies in the amount of$313,110. Public Hearing on City Budget and Tax Lew State statutes requires the City Council to hold a public hearing on the proposed City budget and tax levy for the 2018 fiscal year. Finance Director Ron Otkin explained that the date for this public hearing was chosen in September, and the date was on the notices sent out by Washington County. Otkin presented a PowerPoint covering the 2018 budget and tax levy. He provided information on Local Government Aid, which is distributed based on factors set by the legislature. Hugo is one of 89 cities that receive no LGA due to the tax rate being too low compared to the statewide average. Though Hugo received no LGA, its tax rate is still on the low end of the range. He explained that market values increased in 2017, with the median home increasing 11.2%. Ron explained the median market value of a home in Hugo is $229,500, and the average Minnesota tax on a homestead of that value is $951.01. The tax on the same home in Hugo would be $774.16, 18.6% lower than the average. He explained that the Council has operated on a flat tax rate, and by keeping the rate the same at 36.294%,he proposed a tax levy of$6,589,302. This rate is at the low end for cities in Washington County. Ron reviewed the items that made up the 2018 budget and explained contingency budgeting practices, which assure a balanced budget or possible surplus, and he recommended Council continuing using it. He explained how a home in Hugo can be taxed at 13 different tax rates, depending on where it is located. He talked about the homestead credit refund, special property tax refund, and the senior citizen property tax deferral program. Otkin concluded by saying the budget satisfies the spending and funding priorities established by the City Council with the urban tax rate remaining the same. Mayor Weidt opened the public hearing. Diane and Dan Kirchoffner, 4395 Empress Way North, Unit 2, questioned the increase in their taxes. It was explained to them the increase in the value of their home would cause their taxes to increase as well, and if they did not agree with that value it could be disputed at the Board of Appeals and Equalization meeting in April. In addition, City Assessor Dan Raboin can be contacted to discuss home values. There was also discussion on the state rebate programs available. There was discussion on the Local Board of Appeals and Equalization meeting held every April and the importance of attending if it was believed their market value was not realistic. Washington County sends out notices in February/March that states the home value for following year, and the date of the Local Board of Appeals and Equalization meeting is on that notice.