2026.03.02 CC Minutes - Laserfiche WebLink

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Council Meeting Minutes for March 2, 2026 Page 5 of 7 alone has little resale value but is still in good condition, staff believes this is the best option for cost and longevity for the City of Hugo. After discussion with the Finance Director, and given the substantial cost of the replacement, staff recommended funding the purchase through the Equipment CIP Fund to prevent depleting the Street Department General Fund budget. Adoption of the Consent Agenda approved the ordering and purchase of a new water tank from Mountain High Truck & Equipment LLC for $28,000.00 with an additional cost of $15,000.00 for shipping, sandblasting, painting the exterior, and installing new fenders for the chassis. Approval of Sale of Surplus Public Works and Fire Department Equipment Public Works and Fire Department staff requested the City Council approve the sale of several pieces of City equipment that are no longer of service to the departments. Some of this equipment had been replaced and new equipment was already in service, and other pieces no longer in use had been stored at Public Works and the Fire Hall. Public Works staff would like to utilize an online auction service to facilitate the sale of this equipment. Adoption of the Consent Agenda approved the sale of surplus equipment using an online auction format. Approve Resolution Adopting Water and Sanitary Sewer Pro Forma Financial Guide for 2026 and Establishing Service Rates Josh Wicklander, 14230 Geneva Way North, requested this item be removed from the Consent Agenda. Mayor Weidt granted the request. City Administrator Bryan Bear gave a brief update on this item. The Finance Department had completed its analysis of water and sewer billing data and prepared a pro forma financial guide and corresponding service rates for the 2026 fiscal year. Water and sewer rates were last adjusted in 2025. At that time, adjustments were made to both base rates and usage rates. The overall goal is to provide adequate revenue to cover water and sewer operations as contained in the pro forma financial guide. Bear explained it is an enterprise fund and expenses and revenues need to balance. Mr. Wicklander questioned if the rate increase was due to the White Bear Lake lawsuit. He wanted more information on what was driving the cost factor and what could be done to get other agencies to stop increasing costs. Bear replied that, so far, the White Bear Lake issues have not affected the water rate; it is impactful, but the City has been aggressive in addressing it. There are legal fees, but they do not apply to water rates. One outcome from the lawsuit could be a total watering ban. The City derives income from people using water, and irrigators do pay a substantial amount. Overall, the water and sewer total bill will result in about a 5% increase, which is directly related to operating the water utility and the Metropolitan Council’s increase in fees for treatment costs. Mr. Wicklander thanked the Council. Weidt added that the City has been a good steward by working on water reuse projects that saved the City nearly 100 million gallons of water last year.