2025.12.01 CC Packet - Laserfiche WebLink

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14669 Fitzgerald Avenue North, Hugo, MN 55038 • (651) 762-6300 • www.ci.hugo.mn.us TO: Honorable Mayor Tom Weidt and Members of the City Council FROM: Anna Wobse, Finance Director SUBJECT: 2026 Final Budget and Tax Levy DATE: For the City Council Meeting of December 1, 2025 DESIRED COUNCIL ACTION Adopt Resolution Approving the General Fund Budget for the 2026 Fiscal Year Adopt Resolution Approving the Final Tax Levy Payable in 2026 COMMENTS The City Council has a long history of following the flat tax rate policy and keeping a flat urban tax rate. The flat tax rate policy means that tax collections increase when property values increase and tax collections decrease when property values decrease. On September 15, 2025, the City Council adopted a preliminary 2026 tax levy of $13,567,000 which would provide for no increase in the current urban tax rate. Washington County has determined that based on their estimate of tax capacity the urban tax rate will be 39.130% of tax capacity and the rural tax rate will be 35.499% of tax capacity. Attached for City Council consideration are two resolutions that approve the general fund budget and approve the final tax levy payable in 2026. Staff feels that the final budget document accurately reflects the true cost of operations and meets the goals put forth by the City Council concerning spending and taxation levels. As such, staff recommends adoption of these resolutions. ACKNOWLEDGMENTS The preparation of the budget document on a timely basis could not have been accomplished without the efficient services of the department heads. I want to express my appreciation to the City Administrator, Mayor, and Members of the City Council for their interest and support in planning and conducting the financial operations of the city. ATTACHMENTS Resolution Approving the General Fund Budget for the 2026 Fiscal Year Resolution Approving the Final Tax Levy Payable in 2026 2026 Budget Document