HomeMy WebLinkAbout1996.08.28 CC MinutesMINUTES 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.
City Council meeting of August 28, 1996
Page
The draft budget does not include $50,000 in capital improvements proposed
to be funded from the general fund next year in the CIF' plan, including
the School Section Lake outlet project and the Lake Air Estate outlet.
In preparation of the final budget for 1.997, other capital expenditures
may be be identified.
In summation. the Finance Director recommended that the Council establish
a maximum tax levy for 1997 based on keeping the City's tai; rate the same
as was the case in 1996.
Barnes made motion, Miron seconded, to adopt RESOLUTION 96-7, AP'P'ROVING
PAYABLE 1997 PRELIMINARY LEVY CERTIFICATION IN SUCH AN AMOUNT THAT WILL
MAINTAIN THE CITY'S CURRENT PROPERTY TAX RATE.
VOTING AYE: Agness, Barnes, Goiffon, Leroux. Miron
VOTING NAY: None
Motion Carried.
Council member Agness raised the issue whether the City should be
providing information to the public on the expected impact of the
Council's 1997 budget on their property taxes, as well as the potential
for shift in tax: burden among property classifications due to the
Minnesota Department of Revenue's order to increase the assessed value of
agriculture property in Washington County.
Miron made motion. Leroux seconded, to have staff develop a press release
for Council review and approval in order to clarify these issues for the
Public.
All aye. Motion Carried.
Leroux: made motion. Barnes seconded. to adjourn at AM.
All aye. Motion Carried.
Robert A. Museus
City Administrator