2023.12.18 Packet - Laserfiche WebLink

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Council Meeting Minutes for December 4, 2023 Page 5 of 8 Wobse next reviewed the principal and interest payments on the City’s three bond issues that total $15,735,000. This equaled a debt load per capita of $962, much lower than the state-wide average of $1,943. The payments on these bonds would be $993,037 in 2024. Wobse recommended increasing the Street CIP Levy by $500,000 for a total levy of $1,660,000 in order to be able fund the recently updated five-year Street CIP. The largest piece of the levy was for the general fund operations. Wobse talked about the technique of contingency budgeting that had been used over the past 32 years that would assure that the budget would balance or there would be a surplus. This was cited by Standard & Poors as a favorable tool. There were 27 regular full-time employees in the 2024 budget. In addition, there were vacant community development assistant and accounting clerk positions, along with the new deputy clerk position that was added in 2023. The mechanics position was proposed to be reclassified to Pay Grade 6, and an increase to the audio video techs hourly rate was also suggested. The proposed budget contained a 4.5% cost of living adjustment and step increases for employees that had not reached their pay grade maximums. These changes added $131,885 to the general fund budget. Health insurance premiums increased by 7.68%, and Health Partners was not increasing their deductibles. Other increases included funds for ordinance revisions, emergency siren maintenance, training classes and small equipment purchases. Inflation was still a factor. For the sixth consecutive year, the budget contained $200,000 for budget stabilization. Wobse explained that property taxes fund the majority of the general fund budget. The City also received an annual distribution from the fiscal disparities pool. In 2024, the City would receive $887,514 from this pool, 7% of the City’s total levy. The County, using the City’s proposed levy, calculated the median value residential home would see a City tax increase of $100. She compared Hugo to other cities in Washington County and reviewed the other 13 different tax rates. She provided information on the Homestead Credit Refund and Special Property Tax Refund available to property owners. A Senior Citizen Property Tax Deferral program was also available to those 65 years or older. Mayor Weidt opened the public hearing. Dick Pickhartz, 14941 Empress Avenue North, said he had moved into a 33-unit townhome development, and he talked about the inequity on the roads that are not maintained by Hugo. He said the developer never explained that they were responsible for the roads. He wondered how long it had been a practice and how many were private roads. City Administrator Bryan Bear replied that there are many private roads in many communities, and it was very common in townhome communities. The city approves projects without public streets. Those streets are not constructed to the City’s streets standards and are the responsibility of the homeowners to maintain. Pickhartz said the City should not let them do that and should consider not allowing it. Rick Pratt, 14935 Empress Avenue North, said the City was taxing him the same amount as a home on a City of Hugo street, and that home had a street that was getting plowed and maintained. He questioned why they pay the same. Petryk explained the tax was based on the valuation of the home. She said she understood how he felt though private roads were a very common practice. He asked how much of his tax went towards roads. Weidt said they could