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