2019.09.05 CC Minutes - Midyear Budget Review

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Hugo City Council Meeting Minutes for September 7, 2019, Midyear Budget Review Page 2 of 3 Ron reviewed the general budget and personnel costs, and recommended redirecting funds from the planner position to a building department position for a person to shadow Building Official Chuck Preisler, who will be retiring in November, 2020. No changes will be made to the high deductible health plan but insurance premiums will be increasing by 10.5%. The general budget also includes additional funds for law enforcement and street department materials. For the second consecutive year $200,000 has been set aside for flat tax rate stabilization. Ron reviewed non-tax levy revenues, which included eliminating gaming fees. Ron proposed a total tax levy of $7,757,651, which would not increase the flat tax rate of 36.33%. Ten percent ($767,665) of the total tax levy is being paid for through fiscal disparities. To keep the same tax rate, the tax on a median value home will increase by $72.68, which is still lower than most surrounding communities. Parks Planner Shayla Denaway presented to Council the Parks Commission community park funding priorities. Lions Park has the highest priority with improvements estimated to cost $7,700,000. Five phases were identified in the feasibility study, and there was discussion that roadway and stormwater could be done with development or other funds. Plans for Irish Avenue Park included interim improvements totaling $250,000 to enhance current use. There was no master plan for that park, and there was a need to initiate discussions with neighbors. A master plan for Clearwater Creek Preserve was approved last year, and the Parks Commission would like to proceed with Phase A (trails, boardwalk, signage, and seating) and Phase D (bridge and boardwalk/trail to Fenway Boulevard). The total cost would be $1,850,000. Other phases would best be done when 140th Street is extended. Ron discussed with Council the possibility of increasing the proposed tax levy to include a revenue stream for park improvement bonds of approximately $7.2 million. The revenue stream needed to fund this bond issue would be $556,133. Ron stated he was looking for a maximum tax levy to certify to the County. The levy can be lowered in December after the Truth in Taxation hearing, but it cannot be increased. Council also discussed the timing of improvements to Lions Park. City Administrator Bryan Bear talked about the last time a road project in that area was talked about, the residents on 145th Street were not in favor of it, so that street could be eliminated. The other street and stormwater improvements related to the park could possibly be paid for through development or other funds. The CIP did not include those streets but they could be added. The adjacent land has not developed partly due to the street and infrastructure costs. A cost-share could help move the project forward. It would be a timing issue. Council Member Petryk talked about the White Bear School District Levy to be brought to the voters in November, and if that passes, residents would also see an increase in school district taxes. She also questioned if all amenities planned for the park were necessary and if the City needed to bond that much for the park. Shayla replied that the plan is a few years old and needed to be revisited. Mayor Weidt asked for consensus to add $556,133 to the 2020 preliminary tax levy to begin the revenue stream for a $7.2 million bond issue for community parks. Council Members Haas, Klein, and Miron stated that it made sense. Council discussed how improving Lions Park could spur development, and if residents opposed the increase at the truth-in-taxation hearing, the