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<br /> <br />Mayor Weidt called the meeting to order at 7:00 p.m. <br /> <br />PRESENT: Haas, Klein, Miron, Petryk, Weidt <br />ABSENT: None <br />STAFF PRESENT: City Administrator Bryan Bear, Finance Director Ron Otkin, Finance <br />Coordinator Anna Wobse, Parks Planner Shayla Syverson, City Clerk Michele Lindau <br /> <br />Finance Director Ron Otkin began by talking about a recent news article regarding the City of <br />Plymouth that used budget surpluses to cover the cost of a new maintenance facility. He <br />explained this was done by conservatively budgeting revenues and contingency budgeting for <br />expenditures. He stated that Hugo has been using this method for decades, which assures either a <br />balanced budget or a surplus that can be used for capital items. It was his recommendation to <br />continue using this technique. He is estimating a budget surplus of $173,556 and is <br />recommending this be transferred to the building maintenance fund. He proposed using part of <br />these building maintenance funds in 2020 for repairs to the parking lot, sidewalks, and exterior of <br />the building at the fire station. <br /> <br />Ron explained that building permit fees are a primary source of revenue. This will be a topic at <br />the next legislative session due to a report from the Housing Affordability Institute claiming cities <br />are overcharging permit fees, driving up the cost of new homes, and that not all cities are filing <br />the required reports. Ron stated that Hugo has complied with reporting requirements since they <br />began in 2002, and that cumulatively over 17 years the revenue from building permits haven’t <br />completely covered the cost of providing inspection services. <br /> <br />Ron noted that Washington County estimates the City’s market value and tax capacity will <br />increase by 10%. To keep a flat tax rate, the proposed levy cannot exceed $7,757,651. Ron <br />presented a proposed 2020 tax levy equaling that amount. He reviewed the City’s bonded debt <br />stating the City will be making the final payments on all but one bond issue next February leaving <br />a gross bonded debt of $445,000. The debt service levy will drop to $63,235 in 2020. <br /> <br />Ron reviewed the street Capital Improvement Project stating the roadways had been reviewed and <br />the new street CIP showed Goodview Avenue needed to be done next year. He anticipated the <br />City will be able to finance all projects under the estimated schedule. He reviewed the five year <br />financing plans for the equipment purchasing fund and storm water fund. He explained the park <br />levy for 2020 will remain at $92,000 unless it is increased by Council. These funds are used <br />primarily for neighborhood parks. The fire relief levy will be banked into a separate special <br />revenue fund and that no municipal contribution is required in 2020. Ron talked about the <br />expansion to Public Works saying the space needs study is very preliminary. Ron stated the <br />proposed levy includes $274,626 to begin a revenue stream for a possible bond issue to finance <br />expansion and improvements to the facilities. <br /> <br /> <br /> <br /> <br />Minutes <br /> <br />HUGO CITY COUNCIL MEETING <br />MIDYEAR BUDGET WORKSHOP <br />HUGO CITY HALL <br /> <br />TUESDAY, SEPTEMBER 5, 2019 – 7 P.M.