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<br />Mayor Weidt called the meeting to order at 5:00 p.m. <br /> <br />PRESENT REMOTELY: Klein, Miron, Petryk, Strub Weidt <br />ABSENT: None <br />STAFF PRESENT REMOTELY FROM CITY HALL: City Administrator Bryan Bear, Interim <br />Finance Director Anna Wobse, Community Development Director Rachel Juba <br /> <br />Interim Finance Director Anna Wobse began by talking about American Rescue Plan funds <br />saying the City was expected to receive approximately $1.6 million, and a workshop would be <br />scheduled in the future to discuss the best use of these funds. <br /> <br />Wobse explained the City had been using the same contingency budgeting technique for the past <br />30 years, which usually assured the budget would be balanced or there would be a surplus. <br />Without any unforeseen events, it was estimated there would be a surplus of $300,000 that would <br />to go into the Stormwater Fund. This was in addition to the $200,000 budgeted for tax rate <br />stabilization. She talked about the long-standing preference to keep a flat urban tax rate. For <br />2020, taxable market value increased 7.2%, which equated to 8% increase in tax capacity. To <br />keep the flat tax rate, the levy for 2022 could not exceed $9,757,096. <br /> <br />She reviewed the seven components of the levy beginning with debt service. There were two <br />outstanding bond issues: the Improvement Bond of 2011 and the Public Works Facility Bond of <br />2020. The City would soon be taking bids on a $8.38 million tax abatement bond to fund Lions <br />Park. Outstanding bonds would then total $16.715 million, or $1,058 per capita. The average for <br />bonded debt is $1,876 per capita. <br /> <br />Wobse reviewed the five non-general fund tax levies equaling $1,792,430, and she provided an <br />explanation of each, which included the Fire Relief Pension Fiscal Policy that was adopted nine <br />years ago. Next she explained the largest portion of the proposed tax levy, the general fund <br />budget, which included personnel. There were 25 full-time employees and a vacant finance <br />director and planner position. She talked about future adjustments to the Public Works structure <br />that would divide the department into streets, parks, and utilities. Also included in the budget was <br />a new administrative intern position that would work on communications and facility rentals. She <br />had compared the City’s salary matrix to 19 other metro cities of the same population that showed <br />Hugo pay grade minimums and maximums were 4% less than the average. The proposed budget <br />included pay grade adjustments for the public works director and community development <br />director and step increases for eleven employees as well as a 4.5% cost of living adjustment <br />(COLA) for a total cost to the general fund of $249,119. She explained the general fund also <br />included funds to continue the retention program for firefighters and increased salaries for the fire <br />chief, deputy chief, assistant chief, and fire marshal positions. Health insurance premiums <br />increased by only 3.33% compared to 21% three years ago, and deductibles increased by $400 for <br />single contracts and $800 for family contracts. The total 2022 general fund was up $919,552 due <br />to employee related costs, insurance for new Public Works facility and Lions Park pavilion, and <br />increases to the youth diversion programs. The fund also contained $200,000 for tax stabilization. <br /> <br /> <br />Minutes <br /> <br />HUGO CITY COUNCIL MEETING <br />MIDYEAR BUDGET WORKSHOP <br /> <br />TUESDAY, AUGUST 19, 2021 – 5 P.M.