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Hugo City Council Meeting Minutes for July 25, 2022 – Preliminary Budget Workshop <br />Page 2 of 2 <br /> <br /> <br />Bear shared with the Council that there was a possible need for an additional staff position at <br />City Hall. There was a need for a person to handle room rental scheduling and the <br />communication needs of the City. In addition, the City Clerk could use help with elections. <br />Council was in support of adding an additional staff member at City Hall to handle those duties. <br /> <br />Finance Director Anna Wobse presented on the $1.6 million in ARPA funds the City received. <br />New Treasury guidance released in January 2022, offered a standard allowance option that <br />would allow the City to use the total amount of the ARPA funds for general government <br />services. The Council had until December 31, 2024 to spend the funds. Bear shared a list of <br />possible projects with the Council. Council indicated they were not ready to make a decision <br />and acknowledged further discussions needed to take place. <br /> <br />Finally, Wobse discussed the flat tax rate policy with the Council. Washington County was <br />estimating that a residential homestead in Hugo would see an average market value increase of <br />21% for Pay 2023. Under the flat tax rate policy, a large value increase like that would result in <br />increased tax collections for the City, but also an increased tax bill for the residents. Wobse <br />shared two sceneries with the Council: one following the flat tax rate policy and one deviating <br />from the policy for one year and returning to the lower Pay 2019 tax rate, before the tax rate was <br />increased to cover the City’s additional debt service needs. Council questioned the future effects <br />of deviating from the policy. Council directed staff to prepare the 2023 budget deviating from <br />the flat tax rate policy and lowering the tax rate. <br /> <br />Weidt made motion, Klein seconded, to adjourn at 7:35 p.m. <br /> <br />All Ayes. Motion carried. <br /> <br />Respectfully Submitted, <br /> <br /> <br /> <br />Anna Wobse <br />Finance Director