HomeMy WebLinkAbout2007.10.23 CC Minutes - Budget WorkshopMINUTES FOR THE COUNCIL BUDGET WORKSHOP OF OCTOBER 23.2007
Mayor Fran Miron called the meeting to order at 9:10 am.
PRESENT: Granger, Haas, Petryk, Puleo, Miron
City Administrator Mike Ericson, CD Director Bryan Bear, Finance Director Ron Otkin, PW Director
Chris Petree, and Administrative Intern Nathan Ehalt
PRESENTATION OF PROPOSED 2008 CITY BUDGET
Finance Director Ron Otkin provided the Hugo City Council with a detailed PowerPoint presentation of
the proposed 2008 City budget highlighted by a reduction in the City's tax capacity rate for the fifth
consecutive year. Ron stated that the City's tax capacity rate has been decreased a total of 9.651% over
the past five years. He stated that the budget is balanced and that staff has worked with Council members
to delay the purchase of equipment from the Capital Improvements Program (CIP). The postponed
purchase will allow the Council to allocate those dollars towards construction of the Rice Lake Park
Soccer Complex. The Council set a maximum operating tax levy of $3,259,860 at its September 3, 2007
meeting. This number cannot be increased but it can be decreased by Council when it formally adopts the
budget in December 2007. Ron shared with Council a proposal to increase the employees' share of health
care costs with an employee flex plan, and Council members Frank Puleo and Chuck Haas volunteered to
assist the financial director with a review of the health care costs.
COUNCIL DISCUSSION
The Mayor and Council then asked additional questions of staff, which were answered. Mayor Miron
then asked the five members of the "We the People" group if they had any questions and Wally Stoltzman,
Vicky Hoftbeck, and Mike McAllister addressed Council. The three spoke about their concern for
increased property taxes and Wally said that he now pays more than $5,000 in taxes. Vicky and Mike
broadly discussed the budget changes submitted by the "We the People" group. Mayor Miron stated the
City would be happy to review the property taxes and valuation for Wally and Vicky's home and property.
DISCUSSION ON CITY'S SPECIAL ASSESSMENT POLICY/STREET RECONSTRUCTION
City Engineer Jay Kennedy reviewed with Council the City's current policy on street reconstruction, and
specifically, the special assessment policy, which is 50/50 between the residents and the City. He stated
that the policy should reflect an issue of fairness to the resident and he had a few recommendations for
revisions. Council agreed to have the City Engineer submit revisions to policy and return to Council at a
regular Council meeting.
COUNCIL DIRECTION FOR DECEMBER 2007 TRUTH -IN -TAXATION PUBLIC HEARING
Council directed the finance director to make adjustments to the proposed budget and include as part of
the formal presentation at the December 3, 2007 Truth in Taxation hearing.
ADJOURNMENT
Haas made motion, Puleo seconded, to adjourn at 11:49 am.
All aye. Motion Carried.
Respectfully submitted,
Michael A. Ericson, City Administrator