HomeMy WebLinkAbout2017.12.04 CC Minutes MINUTES FOR THE CITY COUNCIL MEETING ON MONDAY, DECEMBER 4, 2017
Call to Order
Mayor Weidt called the meeting to order at 7:00 p.m.
PRESENT: Haas, Klein, Miron, Petryk, Weidt
ABSENT: None
ALSO PRESENT: City Administrator Bryan Bear, City Attorney Dave Snyder, City Engineer
Mark Erichson, Finance Director Ron Otkin, Accounting Clerk Anna Wobse, and City Clerk
Michele Lindau
November 16, 2017 Legislative Reception
Klein made motion, Petryk seconded, to approve the minutes for the November 16, 2017,
Legislative Reception as presented.
All Ayes. Motion carried.
November 20, 2017 City Council Meeting
Klein made motion, Miron seconded, to approve the minutes for the November 20, 2017, City Council
meeting as presented.
All Ayes. Motion carried.
Approval of the Agenda
Weidt made motion, Petryk seconded, to approve the agenda as presented.
All Ayes. Motion carried.
Approval of the Consent Agenda
Miron made motion, Klein seconded, to approve the following Consent Agenda items.
1. Approval of Claims
2. Approve Resolution Approving 2018 Salary and Reimbursement Levels
3. Approve Promotion of Probationary Firefighters Andy Luchsinger, Jason Palmquist, and
Matt Drew to Firefighter Status
4. Approve Hiring Baily Lund as a Probationary Firefighter
5. Approve Retirement of Assistant Fire Chief Jim Fordham from the Hugo Fire
Department
6. Approve Appointment of David Jensen as the New Assistant Fire Chief
7. Approve Pay Request No.l to Peterson Companies for the Waters Edge Stormwater
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Reuse Project
All Ayes. Motion carried.
Approval of Claims
Adoption of the Consent agenda approved the Claims Roster as presented.
Approve Resolution Approving 2018 Salary and Reimbursement Levels
During the 2018 budget process, the City Council had indicated its agreement with the staff's
recommendation to increase the city's salary matrix by 2.0% and to grant step increases to those
employees who had not yet reached their pay grade maximums. Four(4) of the city's 23 full-time
employees would receive step increases. A pay differential of$120/pay period had been added to the
Mechanic's position for the use of personal tools in the performance of his duties. The Utility Billing
Clerk had been moved from Pay Grade 4, Maximum, to Pay Grade 5, Step 4. Additionally, staff had
included a $0.50 per hour increase for firefighters who have completed five but less than 10 years of
service. These adjustments would also allow the City to remain in compliance with Pay Equity
Statutes. Adoption of the Consent Agenda approved RESOLUTION 2017-44 SETTING 2018
SALARIES FOR CITY EMPLOYEES AND ESTABLISHING EMPLOYEE REIMBURSEMENT
LEVELS.
Approve Promotion of Probationary Firefighters Andy Luchsinur,Jason Palmquist, and
Matt Drew to Firefighter Status
Andy Luchsinger, Jason Palmquist, and Matt Drew had completed their probation period with
the Hugo Fire Department. Adoption of the Consent Agenda approved their promotion to
firefighter status.
Approve Hiring Baily Lund as a Probationary Firefighter
Baily Lund had met the necessary requirements to be hired as a probationary firefighter on the
Hugo Fire Department. Adoption of the Consent Agenda approved the hiring of Baily Lund as a
probationary firefighter.
Approve Retirement of Assistant Fire Chief Jim Fordham from the Hugo Fire Department
After ten years of service on the Hugo Fire Department, Assistant Chief Jim Fordham had
submitted his notice of retirement. Adoption of the Consent Agenda approved the retirement of
Jim Fordham effective December 31, 2017.
Approve Appointment of David Jensen as the New Assistant Fire Chief
Four applicants were interviewed for the upcoming assistant fire chief vacancy. Lieutenant
David Jensen was chosen after the interview process. Adoption of the Consent Agenda approved
the appointment of David Jensen as the new assistant fire chief effective January 1, 2018.
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Approve Pay Request No.1 to Peterson Companies for the Waters Edge Stormwater Reuse
Prosect
Peterson Companies, Inc., had submitted Pay Request No. 1 for work done on the Waters Edge
Stormwater Reuse Project. City Engineer Mark Erichson and Senior Engineering Technician
Steve Duff had reviewed the Pay request and found it satisfactory for work done to date.
Adoption of the Consent Agenda approved the Pay Request to Peterson Companies in the
amount of$313,110.
Public Hearing on City Budget and Tax Lew
State statutes requires the City Council to hold a public hearing on the proposed City budget and
tax levy for the 2018 fiscal year. Finance Director Ron Otkin explained that the date for this
public hearing was chosen in September, and the date was on the notices sent out by Washington
County.
Otkin presented a PowerPoint covering the 2018 budget and tax levy. He provided information
on Local Government Aid, which is distributed based on factors set by the legislature. Hugo is
one of 89 cities that receive no LGA due to the tax rate being too low compared to the statewide
average. Though Hugo received no LGA, its tax rate is still on the low end of the range. He
explained that market values increased in 2017, with the median home increasing 11.2%. Ron
explained the median market value of a home in Hugo is $229,500, and the average Minnesota
tax on a homestead of that value is $951.01. The tax on the same home in Hugo would be
$774.16, 18.6% lower than the average. He explained that the Council has operated on a flat tax
rate, and by keeping the rate the same at 36.294%,he proposed a tax levy of$6,589,302. This
rate is at the low end for cities in Washington County. Ron reviewed the items that made up the
2018 budget and explained contingency budgeting practices, which assure a balanced budget or
possible surplus, and he recommended Council continuing using it. He explained how a home in
Hugo can be taxed at 13 different tax rates, depending on where it is located. He talked about the
homestead credit refund, special property tax refund, and the senior citizen property tax deferral
program. Otkin concluded by saying the budget satisfies the spending and funding priorities
established by the City Council with the urban tax rate remaining the same.
Mayor Weidt opened the public hearing.
Diane and Dan Kirchoffner, 4395 Empress Way North, Unit 2, questioned the increase in their
taxes. It was explained to them the increase in the value of their home would cause their taxes to
increase as well, and if they did not agree with that value it could be disputed at the Board of
Appeals and Equalization meeting in April. In addition, City Assessor Dan Raboin can be
contacted to discuss home values. There was also discussion on the state rebate programs
available.
There was discussion on the Local Board of Appeals and Equalization meeting held every April
and the importance of attending if it was believed their market value was not realistic.
Washington County sends out notices in February/March that states the home value for
following year, and the date of the Local Board of Appeals and Equalization meeting is on that
notice.
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Page 4 of 5
John Waller, 14010 Homestead Avenue North, stated that the City is not asking for enough
money from the Watershed District. He noticed the increase in the stormwater levy and noted
there will be more homes in Hugo, and the District will be getting more money. Waller stated he
will work with the City to get the money to flow back to it.
Betty Zuettel, 5164 158th Street North, talked about the increase in the general fund and stated
she would be attending the meeting in the spring. She was advised to bring evidence for
comparisons such as recent sales data to show their home was overvalued.
Larry Spaniol, 5140 158th Street North, stated he never received the property value notice
because he just bought the home. He questioned why was there such a dramatic increase, saying
it increased by 18.2 %. It was explained that, by law, the assessor changes valuations on a mass
basis, using market trends and sales data that is applied broadly. Spaniol's particular condition
may not fit that, and could be appealed.
Jon Trevillion, 5435 141 Court North, said he bought his home 15 months ago and loves Hugo
but is concerned that someday his home will be valued too high and may become unaffordable.
His taxes went up more than his pay, and that is the challenge he and others face.
Weidt closed the public hearing.
The Council discussed the changes in market values and the importance of paying attention to
that and attending the Board of Appeals and Equalization if necessary. They also encouraged
residents to apply for the refund programs as applicable.
Haas made motion, Petryk seconded, to approve RESOLUTION 2017-45 APPROVING THE
GENERAL FUND BUDGET FOR THE 2018 FISCAL YEAR.
Ayes: Petryk, Klein, Miron, Haas, Weidt
Nays: None
Motion carried.
Haas made motion, Miron, RESOLUTION 2017-46 APPROVING FINAL TAX LEVY
PAYABLE IN 2018.
Ayes: Klein, Haas, Miron, Petryk, Weidt
Nays: None
Motion carried.
Update on Yellow Ribbon Network
Council Member Chuck Haas and Council Member Phil Klein reported on the Yellow Ribbon
Network activities held recently. The 18th Welcome Home Pheasant Hunt was held on
December 2nd. The YRN had been invited to attend the 133rd Air Wing recognition ceremony.
Approximately a dozen secret santas will be providing gifts. They continue to send care
packages, and they received packages from Ryan Companies, who did a community outreach
Hugo City Council Meeting Minutes for December 4,2017
Page 5 of 5
with their employees. They will be talking to St. Pius Church in White Bear Lake about getting
involved in the YRN. Haas said he met with Pat McFarland who runs a golf-based PTSD
program. Last week's Burger Night was sponsored by Mueller Mortuary. A network volunteer
and Hugo resident will be prince for the Winter Carnival and will be attending a burger night.
City Holiday Party on Thursday, December 14, 2017
City Administrator Bryan Bear reminded Council of the City Holiday Party to be held on
Thursday, December 14, 2017, with social hour at 5:30 p.m. and dinner at 6:30. p.m. The event
will be held at the Hugo American Legion.
Reschedule January 1, 2018 Council Meeting to Tuesday,January 2,2018
City Administrator Bryan Bear recommended Council reschedule their January, 2018 meetings
due to the New Year's Holiday and Martin Luther King Holiday.
Haas made motion, Klein seconded, to reschedule the January meetings to January 8, 2018.
All Ayes. Motion carried.
Adiournment
Haas made motion, Klein seconded, to adjourn at 8:15 p.m.
All Ayes. Motion carried.
Respectfully Submitted,
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Michele Lindau
City Clerk