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HomeMy WebLinkAbout2022.12.05 CC Minutes Call to Order Mayor Weidt called the meeting to order at 7:00 p.m. COUNCIL PRESENT: Klein, Miron, Petryk, Strub, Weidt COUNCIL ABSENT: None OTHERS PRESENT: City Administrator Bryan Bear, City Engineer Mark Erichson, City Attorney Dave Snyder, Community Development Director Rachel Juba, City Clerk Michele Lindau Minutes for the November 21, 2022, City Council Meeting Klein made motion, Petryk seconded, to approve the minutes for the Council meeting held on November 21, 2022, as presented. All Ayes. Motion carried. Approval of Agenda Klein made motion, Miron seconded, to approve the agenda as presented. All Ayes. Motion carried Approval of Consent Agenda Miron made motion, Klein seconded, to approve the following Consent Agenda: 1. Approve Claims Roster 2. Approve Appointment of Scott Arcand as an Alternate Planning Commissioner 3. Approve Donation to Hugo Fire Department from Hugo American Legion 4. Approve Resolution Approving Refuse Haulers Licenses for 2023 5. Approve Resolution Approving Liquor and Tobacco Licenses for 2023 6. Approve Resolution Designating Polling Locations for Hugo Elections 7. Approve Letter of Support for the 1-35E/County Road J Improvement Project 8. Approve Release of the Letter of Credit for Victor Gardens North Village 7th Addition 9. Approve Release of the Letter of Credit to The Excelsior Group for Adelaide Landing 1st, 2nd, 3rd and 4th Additions 10. Approve Reduction in Letter of Credit for Rice Lake Reserve 2nd Addition 11. Approve Final Payment to Peterson Companies, Inc. for the CSAH 8 Storm Water Reuse Project All Ayes. Motion carried. Minutes HUGO CITY COUNCIL MEETING HUGO CITY HALL MONDAY, DECEMBER 5, 2022 – 7 P.M. Hugo City Council Meeting Minutes for December 5, 2022 Page 2 of 6 Approve Claims Roster Adoption of the Consent Agenda approved the Claims Roster as presented. Approve Appointment of Scott Arcand as an Alternate Planning Commissioner Scott Arcand served on the Planning Commission from July, 2009 to December, 2021. In May, 2021, Scott agreed to be an interim member on the Planning Commission until vacancies were filled. Vacancies have now been filled and Scott agreed to remain as an Alternate Planning Commissioner. Adoption of the Consent Agenda approved the appointment of Scott Arcand as an Alternate Member of the Planning Commission. Approve Donation to Hugo Fire Department from Hugo American Legion The Hugo American Legion Post 620 requested to donate $1,000 to the Hugo Fire Department for training and equipment. Donations to the Fire Department must be approved by Council. Adoption of the Consent Agenda approved the donation of $1,000 from the Hugo American Legion to the Hugo Fire Department. Approve Resolution Approving Refuse Haulers Licenses for 2023 The City had received applications from six refuse haulers who provide refuse collection and recycling services to Hugo businesses and residents. Seven haulers were allowed by ordinance. SRC, Inc dba Forest Lake Sanitation had sold to Waste Management and did not wish to renew their license. Licenses would be issued to six haulers upon receipt of completed application, $165 annual licensing fee and proof of insurance. Adoption of the Consent Agenda approved RESOLUTION 2022-81 APPROVING 2023 REFUSE HAULERS LICENSES. Approve Resolution Approving Liquor and Tobacco Licenses for 2023 Staff had received the appropriate applications for renewals of liquor and tobacco licenses for 2023. City staff recommended Council approve the annual renewal of the licenses subject to payment of all fees, taxes and utilities, and receipt of certificates of liquor liability insurance. Adoption of the Consent Agenda approved RESOLUTION 2022-82 APPROVING 2023 LIQUOR AND TOBACCO LICENSES. Approve Resolution Designating Polling Locations for Hugo Elections State Statute 204B.16 required municipalities to designate precinct polling places for the following year elections by resolution by December 31 of each year. There were no elections planned for 2023; however, this did not exempt the City from the State Statute requirement to adopt a resolution annually. Adoption of the Consent Agenda approved RESOLUTION 2022- 83 DESIGNATING PRECINCT POLLING LOCATIONS FOR ELECTIONS IN THE CITY OF HUGO, WASHINGTON COUNTY, MINNESOTA. Hugo City Council Meeting Minutes for December 5, 2022 Page 3 of 6 Approve Letter of Support for the 1-35E/County Road J Improvement Project Staff had received an email from Ramsey County discussing an upcoming improvement project for the I-35E/CR J interchange. Scheduled for construction in 2025, the project would add interstate ramps to the north side of the interchange and make improvements to CR J and Centerville Road. Ramsey County asked whether the City would be interested in writing a letter of support for their Corridors of Commerce grant request. Adoption of the Consent Agenda approved the letter of support for the I-35E/CR J project. Approve Release of the Letter of Credit for Victor Gardens North Village 7th Addition Rich Kettler, the developer for Victor Gardens North Village 7th Addition, had requested the City release the letter of credit being held for the Victor Gardens North Village 7th Addition. City staff had inspected the work and recommended the release of the letter of credit. Adoption of the Consent Agenda approved the release of the letter of credit being held for the constructed improvements for the Victor Gardens North Village 7th Addition. Approve Release of the Letter of Credit to The Excelsior Group for Adelaide Landing 1st, 2nd, 3rd and 4th Additions The Excelsior Group had requested the City release their letter of credit for Adelaide Landing 1st, 2nd, 3rd and 4th Additions. City staff had inspected the work, and the warranty period had expired; therefore, staff recommended the release of the letter of credit. Adoption of the Consent Agenda approved the release of the letter of credit being held for the constructed improvements in Adelaide Landing 1st, 2nd, 3rd and 4th Additions. Approve Reduction in Letter of Credit for Rice Lake Reserve 2nd Addition The Rice Lake Reserve 2nd Addition had substantial work completed to date and M/I Homes of Minneapolis/St. Paul, LLC. had requested a reduction in the letter of credit. The current letter of credit for the Rice Lake Reserve 2nd Addition was in the amount of $826,810. Staff had inspected the work completed to date and recommended approval. Adoption of the Consent Agenda approved the reduction in the letter of credit to $82,681 based on the value of work remaining to be completed. Approve Final Payment to Peterson Companies, Inc. for the CSAH 8 Storm Water Reuse Project The CSAH 8 Storm Water Reuse Project had been successfully completed. Staff had received all the contract close-out documents for the project. The two-year warranty would begin upon acceptance of the improvements. Adoption of the Consent Agenda approved the improvements and final payment to Peterson Companies, Inc. in the amount of $17,771.18 Public Hearing on 2023 City Budget and Tax Levy State statutes required the City Council to hold a public hearing on the proposed City budget and tax levy for the 2023 fiscal year. Hugo City Council Meeting Minutes for December 5, 2022 Page 4 of 6 Finance Director Anna Wobse presented the budget and tax levy to the Council prior to taking public comment. She began by explaining the City of Hugo received no Local Government Aid again this year. Hugo is one of 110 cities that do not receive any LGA, likely because the City’s tax rate is lower than state-wide average. She provided a 2022 tax rate comparison by using the median taxable value of a home in Washington County of $315,600. The average state-wide tax on that home would be $1,381. The same home in Hugo would be $1,209, 14% lower. Hugo’s lower tax rate was due to keeping the tax levy low and having high market value on homes. She explained that as a property’s value increases, so do taxes owed on that home. Values had increased 21% for residents and 5.4% for commercial and industrial. Because of the large increase in values, Council met in a workshop on July 25, 2022, to discuss whether to keep the same tax rate or lower the rate. The City had been operating on a flat tax rate, but it was decided by Council to lower the rate to 36.274% for one year and prepare the 2023 Budget and Tax Levy reflecting the lower rate. This meant the proposed levy could not exceed $10,998,874. Wobse next reviewed the principal and interest payments on the City’s three bond issues that total $16,235,000. This equaled a debt load per capita of $988, much lower than the state-wide average of $1,927. The payments on these bonds would be $992,174 in 2023. Wobse recommended increasing the Equipment Levy by $40,000 for a total of $300,000 for future Fire Department and Public Works purchases. The largest piece of the levy was for the general fund operations. Wobse talked about the technique of contingency budgeting that had been used over the past 31 years that would assure that the budget would balance or there would be a surplus. This was cited by Standard & Poors as a favorable tool. There were 27 regular full-time employees in the 2023 budget. In addition, there was a vacant community development assistant and new deputy clerk position included in the budget. The budget also allowed for restructuring in the Public Works Department. The budget contained funding to allow for the hourly rate for qualified firefighters under the retention program to be increased by $.50 per hour. Per Council’s direction, funding for a full-time fire chief was also included. Wobse talked about data compiled by the League of Minnesota Cities that showed Hugo’s salary matrix pay grade minimums were 2% less than average and maximums were in line with other cities that reported. The proposed budget contained a 4.5% cost of living adjustment and step increases for employees that had not reached their pay grade maximums. These changes added $191,907 to the general fund budget, not including $191,799 for a full-time fire chief. Health insurance premiums increased by 2.15%, and Health Partners was not increasing their deductibles. Other increases included funds to operate Lions Volunteer Park, updates to the City website, room rental software, and planning application tracking software. She also talked about how inflation affected spending. For the fifth consecutive year, the budget contained $200,000 for budget stabilization. Wobse explained that property taxes fund the majority of the general fund budget. The City also receives an annual distribution from the fiscal disparities pool. In 2023, the City would receive $923,170 from this pool, 8.5% of the City’s total levy. The County, using the City’s proposed levy, calculated the median value residential home would see a City tax increase of $156. If the Council had chosen to keep the flat tax rate, the City tax owed would have been $274. She compared Hugo to other cities in Washington County and reviewed the other 13 different tax rates. She provided information on the Homestead Credit Refund and Special Property Tax Refund available to property owners. A Senior Citizen Property Tax Deferral program was also available to those 65 years or older. Hugo City Council Meeting Minutes for December 5, 2022 Page 5 of 6 The Council had no questions, and Mayor Weidt opened the public hearing. Rick Bieniek, 5161 Farnham Drive North, questioned where all the tax money goes. He talked about how he pays into his homeowner’s association for street and ground maintenance, and their sidewalk clearing comes out of HOA funds. There were no other comments, and Weidt closed the public hearing. Petryk said she was in favor of the resolutions, and answered Bieniek’s questions saying the City provided police and fire protection, and maintains water systems, drainage, and roads outside of their community. All single-family homes had the same services. Klein added that there was a wide variety of parks their community is privy to. This new Lions Volunteer Park adds a lot of amenities, and everyone pays for it. This provides amenities residents want and need and that is what makes Hugo a great place to live. Miron made motion, Klein seconded, to approve RESOLUTION 2022 – 84 APPROVING THE GENERAL FUND BUDGET FOR THE 2023 FISCAL YEAR. Roll call vote-all Ayes. Motion carried. Miron made motion, Klein seconded, to approve RESOLUTION 2022 – 85 RESOLUTION APPROVING FINAL TAX LEVY PAYABLE IN 2023 Roll call vote-all Ayes. Motion carried. Reminder-Santa Party Wednesday, December 7, 2022 City Administrator Bryan Bear reminded Council they had scheduled a meeting to attend the annual Santa Party on Wednesday, December 7, 2022, from 5-7 p.m. at the Peder Pedersen Pavilion. The tree lighting would take place at 6:30 p.m. Reminder - Holiday Party Thursday, December 15, 2022 City Administrator Bryan Bear reminded Council they had scheduled the annual Holiday Party for Thursday, December 15, 2022, beginning at 5:30 p.m. at the new Peder Pedersen Pavilion. This event is held in appreciation of volunteers and staff. Schedule Fire Department Workshop for Wednesday, January 18 or 25, 2023 City Administrator Bryan Bear recommended Council schedule a workshop to continue discussions surrounding staffing needs within the Hugo Fire Department. Hugo City Council Meeting Minutes for December 5, 2022 Page 6 of 6 Miron made motion, Klein seconded, to schedule a workshop for Wednesday, January 25, 2023, at 7 p.m. All Ayes. Motion carried. Reschedule First Meeting in January to Monday, January 9, 2023 and Cancel January 16, 2023, Due to New Year’s Holiday and Martin Luther King Day City Administrator Bryan Bear informed Council that the New Year’s Holiday is recognized on Monday, January 2. This was the same day as the Council’s first regular meeting of the month. The second regular meeting of the January would fall on Martin Luther King Day. Weidt made motion, Miron seconded, to hold only one meeting in January on Monday, January 9, 2023. All Ayes. Motion carried. Adjournment Klein made motion, Strub seconded, to adjourn at 7:39 p.m. All Ayes. Motion carried. Respectfully Submitted, Michele Lindau City Clerk