2022.07.25 CC Minutes - Preliminary Budget Workshop

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