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1�iiHCiu <br />of <br />P14669 Fitzgerald Avenue North, Hugo, MN 55038 (651) 762-6300 www.ci.hugo.mn.us <br />TO: Honorable Mayor Tom Weidt and Members of the City Council <br />FROM: Ron Otkin, Finance Director <br />SUBJECT: 2019 Final Budget and Tax Levy <br />DATE: For the City Council Meeting of December 3, 2018 <br />DESIRED COUNCIL ACTION <br />Adopt Resolution Approving the General Fund Budget for the 2019 Fiscal Year. <br />Adopt Resolution Approving Final Tax Levy Payable in 2019. <br />Adopt Resolution Decertifying Tax Increment District No. 1-1 <br />COMMENTS <br />On September 6, 2018, the City Council adopted a preliminary 2019 tax levy of $7,083,393. <br />Washington County has determined that based on their estimate of tax capacity the urban tax rate will <br />increase to 36.477% of tax capacity (up from 36.330%). As it is the Council's preference that the <br />urban tax rate remain the same, the Finance Department has prepared two resolutions that will remedy <br />the situation. The final tax levy resolution is $24,700 less than the preliminary levy. When combined <br />with a resolution decertifying the Bald Eagle TIF District (adding $86,497 in tax capacity) the urban <br />tax rate will remain at 36.330% of tax capacity. Said resolutions are attached for City Council <br />consideration. <br />Staff feels that the final budget document accurately reflects the true cost of operations and meets the <br />goals put forth by the City Council concerning spending and taxation levels. As such, the .staff <br />recommends adoption of the 2019 general fund budget resolution. <br />ACKNOWLEDGMENTS <br />The preparation of the budget document on a timely basis could not have been accomplished without <br />the efficient services of the department heads. I want to express my appreciation to the City <br />Administrator, Mayor, and Members of the City Council for their interest and support in planning and <br />conducting the financial operations of the city. <br />ATTACHMENTS <br />Resolution Approving the General Fund Budget for the 2019 Fiscal Year <br />Resolution Approving the Final Tax Levy Payable in 2019 <br />Resolution Decertifying Tax Increment District No. 1-1 <br />2019 Budget Document <br />