1996.08.28 CC Minutes - Laserfiche WebLink

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MINUTES FOR THE HUGO CITY COUNCIL MEETING OF AUGUST '28. 1996 The meeting was called to order by Mayor Fran Miron at 9:15 AM. PRESENT: Aqness, Barnes. Goiffon, Leroux, Miron City Administrator, Robert MUseus City Finance Director, Ron Otkin The Mayor reconvened the City Council meeting of August6, 1996, to consider the City's draft 1997 budget, as well as to determine the City's maximum tax levy required for 1997. The City Finance Director previously provided the Council with copies of a draft budget showing expected funding needs and revenue sources for the Upcoming year. The budget, as proposed, shows a relatively modest .9% increase in general fund operating expenses, though the City is expecting a substantial drop in permit fees due to a slow down in construction. The City has not yet received its 1997 tax capacity rates from the County, which creates an uncertain impact the City will actually have on the public's property taxes. The County Auditor/Treasurer office has stated that they expect the City's tax capacity to grow by 12% for 1997. This growth is due to three conditions: 1. The increased value of agriculture property in the City. This includes not only farmland in production, but also many large acre, rural residential properties, which benefit from agricultural classification. The growth in value of residential properties in the City. 3. The substantial amount of new construction which occurred in the City in 1995. Offsetting this growth in tax capacity is an expected reduction in the building activity in the City durinq the next year, which will reduce revenues from building permit fees. This reduction ins building activity is expected due to the fact that almost all urban residential lots are either built upon or have building permits issued to them. One development has been approved for construction, but is awaiting financing, and there are a small number of rural residential lots available. but due to their hiq_h value. they tend to move at a much slower rate than urban residential lots. Estimated expenditures for 1997 were based on the following assumptions: 1. 4% growth in payroll. 2. No elections in 1997. _. Increase in legal fees. 4. Planning and zoning expenses will drop as there are no major new planning initiatives in 1997. 5. Engineering expenses will increase largely due to storm water improvement projects. 6. The law enforcement contract with Washington County will increase approximately 5.4%. 7. The Fire Department budget will remain steady. S. The County street maintenance contract will increase due to higher benefit levels for County union employees. 9. Minor additional funding has been provided for park maintenance in case the City purchases the Oak shore Parti:. Homeowners Association facility.