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<br />Minutes <br /> <br />HUGO CITY COUNCIL MEETING <br />HUGO CITY HALL <br /> <br />MONDAY, JULY 1, 2019 – 7 P.M. <br /> <br /> <br />Call to Order <br /> <br />Mayor Weidt called the meeting to order at 7:00 p.m. <br /> <br />PRESENT: Haas, Klein, Petryk, Weidt <br />ABSENT: Miron <br />ALSO PRESENT: City Administrator Bryan Bear, City Attorney Dave Snyder, City Engineer <br />Mark Erichson, City Clerk Michele Lindau <br /> <br />Approval of Minutes for the June 17, 2019, City Council Meeting <br /> <br />Petryk made motion, Klein seconded, to approve the minutes for the City Council meeting held <br />on June 17, 2019, as presented. <br /> <br />All Ayes. Motion carried. <br /> <br />Approval of Minutes for the June 25, 2019, 10th Anniversary of the Yellow Ribbon <br />Network <br /> <br />th <br />Klein made motion, Haas seconded, approve the minutes for the 10 Anniversary of the Yellow <br />Ribbon Network celebration held on June 25, 2019, as presented. <br /> <br />All Ayes. Motion carried. <br /> <br />Approval of Agenda <br /> <br />Weidt made motion, Klein seconded, to approve the agenda as amended by changing the order of <br />the Audit Report and the recognition of Terry Dahlem. <br /> <br />All Ayes. Motion carried. <br /> <br />Presentation of 2018 Audit Report – Jason Miller, Smith Schafer & Associates <br /> <br />Jason Miller from the independent accounting firm of Smith Schafer & Associates presented the <br />Hugo City Council with a recap of the audit of City finances for the 2018 fiscal year. Miller <br />stated it was a very clean audit, the City was well run, and he gave credit to staff. The City was <br />issued an unmodified opinion meaning all financial statements were fairly stated. Tests are <br />performed in seven areas for Minnesota legal compliance and noted no exceptions. Miller <br />reviewed the different fund types and revenues pointing out the reliance cities have on property <br />taxes as a revenue source. Government expenditures made up 22% of the total budget, which <br />was a reduction from the prior year due partly to a decrease in engineering services and the 2017 <br />cost for the Comprehensive Plan update. Public safety is approximately 39% of the budget and <br />had increased in 2018 due to an increase in the police contract. Highway and streets expenditures <br />increased only 3%, and community development expenditures decreased approximately 24 % <br />due to staff turnover. The general fund reserve balance was about 65% of 2018’s expenditures. <br /> <br />