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MINUTES FOR THE COUNCIL BUDGET WORKSHOP OF OCTOBER 23.2007 <br />Mayor Fran Miron called the meeting to order at 9:10 am. <br />PRESENT: Granger, Haas, Petryk, Puleo, Miron <br />City Administrator Mike Ericson, CD Director Bryan Bear, Finance Director Ron Otkin, PW Director <br />Chris Petree, and Administrative Intern Nathan Ehalt <br />PRESENTATION OF PROPOSED 2008 CITY BUDGET <br />Finance Director Ron Otkin provided the Hugo City Council with a detailed PowerPoint presentation of <br />the proposed 2008 City budget highlighted by a reduction in the City's tax capacity rate for the fifth <br />consecutive year. Ron stated that the City's tax capacity rate has been decreased a total of 9.651% over <br />the past five years. He stated that the budget is balanced and that staff has worked with Council members <br />to delay the purchase of equipment from the Capital Improvements Program (CIP). The postponed <br />purchase will allow the Council to allocate those dollars towards construction of the Rice Lake Park <br />Soccer Complex. The Council set a maximum operating tax levy of $3,259,860 at its September 3, 2007 <br />meeting. This number cannot be increased but it can be decreased by Council when it formally adopts the <br />budget in December 2007. Ron shared with Council a proposal to increase the employees' share of health <br />care costs with an employee flex plan, and Council members Frank Puleo and Chuck Haas volunteered to <br />assist the financial director with a review of the health care costs. <br />COUNCIL DISCUSSION <br />The Mayor and Council then asked additional questions of staff, which were answered. Mayor Miron <br />then asked the five members of the "We the People" group if they had any questions and Wally Stoltzman, <br />Vicky Hoftbeck, and Mike McAllister addressed Council. The three spoke about their concern for <br />increased property taxes and Wally said that he now pays more than $5,000 in taxes. Vicky and Mike <br />broadly discussed the budget changes submitted by the "We the People" group. Mayor Miron stated the <br />City would be happy to review the property taxes and valuation for Wally and Vicky's home and property. <br />DISCUSSION ON CITY'S SPECIAL ASSESSMENT POLICY/STREET RECONSTRUCTION <br />City Engineer Jay Kennedy reviewed with Council the City's current policy on street reconstruction, and <br />specifically, the special assessment policy, which is 50/50 between the residents and the City. He stated <br />that the policy should reflect an issue of fairness to the resident and he had a few recommendations for <br />revisions. Council agreed to have the City Engineer submit revisions to policy and return to Council at a <br />regular Council meeting. <br />COUNCIL DIRECTION FOR DECEMBER 2007 TRUTH -IN -TAXATION PUBLIC HEARING <br />Council directed the finance director to make adjustments to the proposed budget and include as part of <br />the formal presentation at the December 3, 2007 Truth in Taxation hearing. <br />ADJOURNMENT <br />Haas made motion, Puleo seconded, to adjourn at 11:49 am. <br />All aye. Motion Carried. <br />Respectfully submitted, <br />Michael A. Ericson, City Administrator <br />