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HomeMy WebLinkAbout2025.12.01 CC MinutesMINUTES City Council Meeting City Hall Council Chambers Monday, December 1, 2025 7:00 p.m. MetCall to Order Mayor Weidt called the meeting to order at 7:00 p.m. Roll Call and Pledge of Allegiance COUNCIL PRESENT: Krull, Miron, Strub, Weidt COUNCIL ABSENT: Petryk OTHERS PRESENT: City Administrator Bryan Bear, City Attorney Dave Snyder, Community Development Director Rachel Juba, City Clerk Michele Lindau Approve Minutes for the November 17, 2025, City Council Meeting Miron made motion, Krull seconded, to approve the minutes for the City Council meeting held on November 17, 2025, as presented. All Ayes. Motion carried. Approve Minutes for the November 19, 2025, Met Council Committee of the Whole Meeting Krull made motion, Strub seconded, to approve the minutes for the Metropolitan Council Committee of the Whole Meeting held on November 19, 2025, as presented. All Ayes. Motion carried. Approval of Agenda Weidt made motion, Miron seconded, to approve the agenda as amended by removing the swearing in and badge pinning of Bob Bieniek due to his absence because of a flight delay. All Ayes. Motion carried. Swearing In and Badge Pinning of Tony DeLaRosa as Regular Firefighter On December 5, 2023, Tony DeLaRosa was hired as a Probationary Firefighter with the Fire Department. Tony successfully completed all the requirements to be promoted to Firefighter. Fire Chief Jim Compton recommended Council approve Tony DeLaRosa be promoted to the rank of Firefighter effective December 1, 2025. Fire Chief Jim Compton, Jr., performed the formal swearing in of DeLaRosa. DeLaRosa addressed that Council thanking them for the opportunity to serve the City. He also thanked his cousin Jake Jorgenson, also a Hugo firefighter, and his family for their support. Jake performed the badge pinning. Council Meeting Minutes for December 1, 2025 Page 2 of 5 Approval of Consent Agenda Krull made motion, Strub seconded, to approve the following Consent Agenda: 1. Approve Claims Roster 2. Approve Hiring of Micah Courneya and Ashley Del Pino as Probationary Firefighters 3. Approve Donation to the Hugo Fire Department from the Hugo American Legion 4. Approve Cooperative Agreement for Minnesota Technology Corridor All Ayes. Motion carried. Approve Claims Roster Adoption of the Consent Agenda approved the Claims Roster as presented. Approve Hiring of Micah Courneya and Ashley Del Pino as Probationary Firefighters Micah Courneya and Ashley Del Pino had completed all requirements for hiring. Adoption of the Consent Agenda approved the hiring of Micah and Ashley as probationary firefighters with a start date of December 2, 2025. Approve Donation to the Hugo Fire Department from the Hugo American Legion The Hugo American Legion had requested to donate $1,500 to the Hugo Fire Department from pull-tab proceeds for equipment and training. All donations to the Fire Department need to be approved by the Council. Adoption of the Consent Agenda approved the donation of $1,500 to the Hugo Fire Department. Approve Cooperative Agreement for Minnesota Technology Corridor Since 2018, the City of Hugo had been participating in a collaborative economic development group for development along the I-35E corridor. Six communities along with Washington County and Anoka County have worked on marketing the area known as the Minnesota Technology Corridor. Staff had provided updates from time to time on the work of the group. The group worked to develop a unified strategy for land use, utilities, and transportation, and to identify the best design for the corridor factoring each jurisdiction’s goals. This could include hiring a consultant to work on the jurisdictions’ behalf to create a unified plan. At its November 18, 2025, meeting, the EDA heard a presentation from Chris Eng, Washington County Economic Development Director, and Gregory Frahm-Gilles, Anoka County Economic Development Director. The EDA agreed that the continued partnership in planning the corridor is important and recommended approval of the agreement to the City Council. Adoption of the Consent Agenda approved the Minnesota Technology Corridor Cooperative Agreement. Public Hearing on the 2026 City Budget and Tax Levy Finance Director Anna Wobse presented an overview of the 2026 proposed budget and tax levy, reviewing the City’s reliance on property taxes as its primary revenue source due to the continued absence of Local Government Aid (LGA). In 2025, over $500 million in LGA was Council Meeting Minutes for December 1, 2025 Page 3 of 5 distributed statewide, with Hugo again receiving none. She explained that distribution was based on statutory factors and that Hugo’s lower tax rate and lack of unmet fiscal need likely contribute to its ineligibility. As a result, the City must rely on property taxes to fund operations and infrastructure. Wobse reported that Hugo’s tax on a median-valued homestead remains $206 below the statewide average. Total taxable market value for Pay 2026 exceeds $3 billion, a 6 percent increase, with the median homestead value rising 3 percent to $408,700. The City continues to follow its flat tax rate policy. The Council previously adopted a preliminary 2026 levy of $13,567,000, a 5.6 percent increase over 2025. She reviewed the major components of the proposed levy, including $990,753 for bonded debt obligations related to street projects, the Public Works facility, and Lions Park. A Street CIP levy of $2,010,000 was recommended to support future roadway improvements without borrowing. Additional recommended levies included $300,000 for equipment replacement, $278,788 for stormwater improvements, $92,000 for the Parks Special Fund, and $32,728 for the Fire Relief Pension Fund. The City’s per capita debt remains well below the statewide average. The 2026 General Fund budget supports day-to-day City operations and includes funding for 27 full-time positions and two vacant positions to be filled as needed. Wobse reviewed the implementation of the State of Minnesota Paid Leave Program effective January 1, 2026, and the City’s selection of an equivalent private plan. A 4.44 percent salary matrix adjustment was recommended, consisting of a 3 percent cost-of-living adjustment, a 1 percent market adjustment, and a 0.44 percent premium offset for paid leave costs. Step increases for 10 employees were also included. Health insurance premiums will increase 14.95 percent for 2026, with no deductible changes. The budget also includes funding for new vision insurance for full- time employees. Wobse reported that one-time Public Safety Aid funds continue to support the cost of the additional deputy approved in 2024. The total General Fund budget increase for 2026 is $749,500, reflecting wage and benefit increases, inflationary costs, the 2050 Comprehensive Plan update, roadway maintenance programming, replacement of the City’s accounting software, and new permitting and planning software. Approximately 91 percent of General Fund revenues continue to be funded by property taxes. Wobse reviewed fiscal disparities, noting that Hugo will receive $1,124,330 in 2026, covering more than 8 percent of the total levy. Based on County calculations, the City’s tax rate will remain stable, and the median-valued homestead was projected to see a City tax increase of $43. It was noted that Hugo does not impose additional service fees or charges on residents. She also reminded the Council that the City was only one of several taxing jurisdictions reflected on a resident’s property tax statement. Wobse also reviewed available State property tax relief programs for qualifying residents. She concluded her presentation by saying that the City remains in a strong financial position while maintaining its infrastructure commitments. She recommended Council open the public hearing and consider adoption of the final budget and tax levy following public comment. Council Meeting Minutes for December 1, 2025 Page 4 of 5 Mayor Weidt opened the public hearing. There were no comments, and he closed the public hearing. Miron made motion, Krull seconded, to approve RESOLUTION 2025 - 43 APPROVING THE GENERAL FUND BUDGET FOR THE 2026 FISCAL YEAR. Roll call vote - Ayes: Strub, Miron, Krull, Weidt Nays: None Miron made motion, Strub seconded, to approve RESOLUTION 2025 - 44 APPROVING THE FINAL TAX LEVY PAYABLE IN 2026. Roll call vote - Ayes: Strub, Miron, Krull, Weidt Nays: None Reminder - Santa Party and Tree Lighting on Wednesday, December 3, 2025 City Administrator Bryan Bear reminded Council they had scheduled a meeting to attend the fourth annual Santa Party on Wednesday, December 3, 2025, from 5-7 p.m. at the Peder Pedersen Pavilion. The tree lighting ceremony will be at 6:30 pm. Reminder – Holiday Party on Thursday, December 4, 2025 City Administrator Bryan Bear reminded Council they had scheduled a meeting to attend the annual holiday party in appreciation of volunteers and commissioners on Thursday, December 4, 2025, at 5:30 at the Peder Pedersen Pavilion. Fire Department Toy and Food Drive on Saturday, December 6, 2025 City Administrator Bryan Bear reminded Council the Hugo Fire Department will hold a Toy Drive on Saturday, December 6, 2025. Locations to “stuff the truck” are the Hugo Fire Station and Festival foods parking lot from 10 a.m. to 2 p.m. Approve Closing of City Hall on Friday, December 26, 2025 As provided for in the Hugo Personnel Policy, each regular, full-time employee is granted one day of their choosing as a personal holiday. Staff requested to use their personal holiday on Friday, December 26, 2025, and requested Council close City Hall on that date. Weidt made motion, Strub seconded, to close City Hall on Friday, December 26, 2025. All Ayes. Motion carried. Council Meeting Minutes for December 1, 2025 Page 5 of 5 Adjournment Miron made motion, Krull seconded, to adjourn at 7:42 p.m. All Ayes. Motion carried. Respectfully Submitted, Michele Lindau, City Clerk