2018.12.03 CC Minutes - Laserfiche WebLink

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Hugo City Council Meeting Minutes for December 3, 2018 Page 5 of 7 Review and Update Obligations On November 15, 2018, the Metropolitan Council approved a second application process for planning grant communities to request an extension to the December 31, 2018, submittal deadline for comprehensive plan updates. The grant communities are eligible to make a request of up to six additional months to submit their plan, or through June 30, 2019. An application needed to be submitted by December 21, 2018, that included a resolution requesting the extension, a description of the completed and remaining activities, and the timeline for completion. Once the application was received by the Met Council, they would work with Hugo to amend the planning grant agreement to reflect the new deadline. Adoption of the Consent Agenda approved RESOLUTION 2018-42 REQUESTING ADDITIONAL TIME WITHIN WHICH TO COMPLETE COMPREHENSIVE PLAN “DECENNIAL” REVIEW AND UPDATE OBLIGATIONS. Public Hearing on City Budget and Tax Levy State statutes required the City Council to hold a public hearing on the proposed city budget and tax levy for the 2019 fiscal year. Finance Director Ron Otkin presented the budget and tax levy to the Council prior to taking public comment. Ron stated that, once again, the City received no Local Government Aid and the main reason was because Hugo’s tax rate of 36.33% was lower than the state wide average at a tax rate of 44.251%. He explained the median market value of residential homestead in Hugo was $262,700, and based on that valuation, the tax would be $197.31 less than the statewide average on the same home. Additionally, Hugo’s tax rate was on the low end of other comparable cities in Washington County. Homes in Hugo increased 6.7% in market value, and changes in market value changed the tax levy amount since it’s been the Council’s desire to maintain a flat tax rate. Ron reviewed the City’s bonded debt, which is $259 per capita. This is much lower than the statewide average and gives Hugo an excellent bond rating of AA+. He reviewed the debt service and talked about what made up the different funds and levies. Ron explained the programs available to residents for tax refunds and encouraged visiting the Department of Revenue’s tax website for more information and forms. He concluded his presentation by stating the budget satisfies the funding priorities established by the City Council. Mayor Weidt opened the public hearing. Richard Bieniek, 5161 Farnham Drive North, questioned what he saw as a large revenue or overage of money in the budget, and he wondered why that was. Ron addressed the question of the overage in funds stating it’s been the City’s practice to conservatively estimate revenues and liberally estimate expenditures. Council explained that a surplus had served the City well in the past, specifically during the 2008 tornado, and when property values dropped, the Council was able to maintain a flat tax rate. This avoided raising taxes during a recession. The conservative budgeting process also improves Hugo’s bond rating. Funds have been used to establish the building maintenance fund and contribute towards the equipment replacement fund. Hearing no other comments, Weidt closed the public hearing.