HomeMy WebLinkAbout2016.08.22 CC Minutes - Budget Workshop i
MINUTES FOR THE HUGO CITY COUNCIL
MID-YEAR BUDGET REVIEW WORKSHOP
MONDAY,AUGUST 22,2016
Mayor Weidt called the meeting to order at 7:00 p.m.
PRESENT: Klein,Miron, Petryk,Weidt
ABSENT: Haas
STAFF PRESENT: City Administrator Bryan Bear, Finance Director Ron Otkin,
Accounting Clerk Anna Wobse, and City Clerk Michele Lindau
Discussion on Possible Investigator Position—Sheriff William Hutton
Sheriff William Hutton spoke to the Council about the need for a deputy/investigator to
serve the City of Hugo. There are currently seven individuals, led by Sergeant Wayne
Johnson,who are contract deputies assigned to Hugo.As such,they are able get to know
and work with residents, and are familiar with the community. With Hugo's growing
population,they are kept very busy and sometimes need to do their own follow-up
investigations. It is estimated approximately 25 percent of their time is doing follow-up
on calls, and they often need to go outside of Hugo. An investigator would be able to do
this follow-up work without taking a deputy away from the community. Performing
investigations would be their primary responsibility,but they would also be available to
assist in calls. The cost of an additional deputy would be$120,000,including wages and
other support. Adding this additional position would raise the cost per capita from $60.24
to $68.88 in 2017.
Council generally agreed that law enforcement has changed over the years,with many
additional duties and complications.
2017 Budget Presentation
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Finance Director Ron Otkin presented a PowerPoint slideshow to the Council to review
the 2016 mid-year budget and to lay the groundwork for the 2017 budget and tax levy.
Ron talked about"contingency budgeting"for expenditures that may or may not occur,
which helps keep Hugo's bond rating at AA+. Again this year,Hugo received no Local
Government Aide. A slight increase in market value has increased the tax levy by
$214,172 if the City maintains the current flat tax rate. If the Council chose to increase
the rate by I%, an additional $53,000 could be levied,and that would result in a$10.50
increase on each property tax bill.
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Ron presented the proposed 2017 tax levy. All but one of the City's existing bond issues
will be paid off in 2020. Ron talked about the CIP for streets that included eight road
projects. With current levy and state aid funds,not all these projects can be completed in
Hugo City Council Meeting Minutes for August 22,2016
Midyear Budget Review
Page 2 of 2
eight years;however,when the debt levy drops off in 2020,these funds will be surplus
funds available and could be transferred into the CIP fund.
Ron concluded by saying that the budget as prepared is balanced with no transfers in, and
the proposed tax levy of$5,848,244 keeps the urban tax rate the same. Desired but not
included the budget was an apprentice position for the Public Works Department,two
monument signs,and replacement of the roof on the Fire Hall. Ron stated there is a need
to establish a facility maintenance fund.
There was discussion on the housing market,and how that affects the budget. Ron stated
that the City would not be able to maintain the flat tax rate if there was a large decline in
home values. With a lot of services tied to residential development,the City would
benefit by having more businesses. There was also discussion on increasing the tax rate
to get some of the things done that needed to be done, and Council talked about creating a
building levy and parks levy fund. The Council agreed on the need for an additional
deputy, and there was discussion on hiring one for half the year to allow for funds to be
spent on one of the monument sign.
Conclusion
Council agreed to talk about a CIP for parks and facility maintenance at the next goal
setting workshop in January 2017 and to consider an increase to the 2018 tax rate at that
time.
Staff was directed to prepare a resolution for approval at the September 19,2016 City
Council meeting keeping the tax rate the same. Staff was fixrther directed to investigate
phasing the police position to pay for a monument sign and look for a way to fiord the
apprentice position in the Public Works Department. It was noted that it had been eight
years since a position was added to the Public Works Department.
Adjournment
Weidt made motion,Klein seconded,to adjourn at 9:05 p.m.
All Ayes. Motion carried.
Respectfully Submitted,
*, VI-L-�
Michele Lindau
City Clerk