HomeMy WebLinkAbout1998.08.31 CC Minutes - Budget meetingMINUTES FOR THE HUGO CITY COUNCIL MEETING OF AUGUST 31.1998
The meeting was convened by Mayor Fran Miron at 9:10 a.m.
PRESENT: Arcand, Barnes, Goiffon, Leroux, Miron
City Administrator, Robert Museus
City Engineer, Tom Angus
Finance Director, Ron Otkin
The purpose of this meeting was to review the draft 1999 budget prepared by the City's
Finance Director, and discuss the amount to be set as the City's maximum 1999 tax levy.
Ron Otkin presented a draft 1999 budget for the Council's consideration, and explained
how the budget was developed, line item by line item. Discussion was held regarding
lowing Council salaries to offset the increased cost for the new Fire Hall.
Miron made motion, Leroux seconded, to have staff present an ordinance to the Council
reducing the Mayor and Council member's salaries by 15%.
All aye. Motion Carried.
Substantial discussion was also undertaken regarding the way budget cuts made by the
Council during 1998 are reflected in the budget for 1999, and how they will be
represented on the tax statement provided to property owners. The City Administrator
explained that the City makes two levies each year: one for operations and maintenance
and one for debt service. The budget cuts made by the Council to fund the new Fire Hall
show up on the operations and maintenance account, reducing the requirements for the tax
levy in this area. As a matter of form, the tax levy for debt service will increase to account
for the bonding for the new Fire Hall, increasing the tax levy for debt service. Reduction
in the operations and maintenance levy, plus the increase in the debt service levy balance
out to no tax increase for the Fire Hall. This will not be clear on the property tax
statements. In order to make the Council's actions and intent clear:
Leroux made motion, Goiffon seconded, to transfer $64,356 from the City's capital
improvement account to debt service account to avoid increasing the 1999 property tax
levy for debt service.
All aye. Motion Carried.
Debra Barnes left the meeting at 11:55 a. m.
Following discussion on the proposed budget, the City Administrator provided the
Council worksheets for the Council to fill out indicating their priorities for capital
improvements during the next five years, and requested they be returned to him on
September 8th.
City Council meeting of August 31, 1998
Page 2
During review of the priorities worksheet, the Council discussed the need for various
improvements.
Miron made motion, Leroux seconded, directing City staff to prepare a petition to the
RCWD for the removal of obstructions in Hardwood Creek at CR4 and Harrow Avenue.
All aye. Motion Carried.
Miron made motion, Leroux seconded, directing the City's Finance Director to prepare a
financial feasibility report for the construction of a new well and tower for the community.
All aye. Motion Carried.
Based on the Finance Director's recommendation:
Leroux made motion, Goiffon seconded, to direct City staff to prepare a petition for
consideration at the Council's September 8, 1998 meeting establishing the maximum 1999
tax levy that will not result in an increase in the City's debt service levy and keeps the
City's overall tax rate the same in 1999, as in 1998.
All aye. Motion Carried.
The Council then discussed the need to coordinate certain City activities with Forest Lake
Township, specifically relating to commuter rail and the cleaning of Hardwood Creek.
Miron made motion, Leroux seconded, directing City staff to coordinate a meeting
between the Town Board and the Hugo City Council to discuss these matters, and present
timing options for such a meeting to the City Council at its meeting of September 8th.
All aye. Motion Carried.
Goiffon made motion, Leroux seconded, to adjourn at 1:05 p.m.
All aye. Motion Carried.
Robert A. Museus
City Administrator