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Hugo City Council Meeting Minutes for 15, 2020, Midyear Budget Review <br />Page 2 of 3 <br /> <br /> <br /> <br /> <br />The total general fund budget was up $340,000. Otkin explained that in addition to wage and <br />insurance costs, the remaining increase was attributed to higher law enforcement and street <br />department materials. The General Fund Budget also contains $200,000, for the third consecutive <br />year, to be set aside for maintaining the new tax rate that was set last year. <br /> <br />Otkin said he conservatively estimated non-property tax revenues, explaining that investment <br />earnings were zero because interest rates are near zero, and room rentals will be non-existent until <br />COVID runs its course. After subtracting those non-tax revenues, the General Fund Tax Levy <br />requirement was $6,075,000. <br /> <br />He recapped by saying staff was proposing an 8.9 million tax levy, which would not increase the <br />urban tax rate. He talked about how fiscal disparities increased 11 percent to $852,000. Almost <br />10 percent of the City’s tax levy is paid for through this program. The median value home <br />increased by 4.13 percent, and by keeping the tax rate the same, the tax would increase by $49.14 <br />on a median valued home. Otkin asked for the Council to come to a consensus on the levied tax <br />amount for approval on the September 21, 2020, Council meeting, which can be decreased <br />following the Truth in Taxation hearing in December, but cannot be increased. <br /> <br />Weidt talked about the surplus and having a lot of moving pieces with COVID, the economy, and <br />election, and he wanted to continue on the path Otkin had proposed. <br /> <br />Miron agreed and asked if the City will have an opportunity to adjust the CARES budget in the <br />event the federal government demands the money be returned. Otkin explained that staff will <br />need to document how our expenditures are COVID related and if we need to return the money <br />we will have already set aside the funds. Miron agreed with Weidt that there were a lot of <br />moving parts and having a cushion was a good thing. <br /> <br />Weidt asked about the City Planner position and if there was an intention to fill the position as <br />soon as possible. Community Development Director Rachel Juba explained it has been left as a <br />placeholder. The Building and Planning Departments continued to stay busy and they did use <br />Landform a few times to get through some of the planning projects this year. Staff will be <br />looking at the work load at the end of the year. Staff has hired interns in the past to reduce <br />workloads. Bear added that the Planning staff was as busy as can be, and it was not a very <br />sustainable pace, but he did not want to fill the position now and have economic conditions turn <br />downward. It was Weidt’s opinion that the City should not be too conservative about getting help <br />if needed. <br /> <br />Petryk asked about elections and increased election costs. City Clerk Michele Lindau replied that <br />the state was providing masks and hand sanitizers, and the other large expense was shields, which <br />would be funded through the CARES budget. <br /> <br />Weidt asked about the business grant program and how it worked if they also applied for grants <br />through the County. Juba provided information on the Washington County grant program saying <br />15 Hugo businesses had applied. There were over 300 applications that would total $5 million <br />dollars. The deadline for the second round of applications was September24, 2020. She stated she <br />would reach out to the County, but it was her thought that the City’s qualifications were close to