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Hugo council adopts 2026 budget, approves final tax levy
Summary
The Hugo City Council adopted the 2026 general fund budget and approved the final tax levy after a staff presentation showing Hugo received no Local Government Aid and a recommended 5.6% preliminary levy increase; the council approved the budget and levy by roll call.
The Hugo City Council on Monday adopted the 2026 general fund budget and approved the final tax levy payable in 2026 following a presentation by Finance Director Anna Wobbsie.
Wobbsie told the council the city received no Local Government Aid for 2025 and that the proposed preliminary levy of $13,567,000 represents a 5.6% increase over 2025’s levy of $12,847,855. She said Hugo’s total taxable market value for Pay 2026 now exceeds $3,000,000,000, with a median homestead market value of $408,700 and an estimated median tax increase of about $43 for the typical homestead.
“This year Hugo did not receive any of this aid,” Wobbsie said, referring to state Local Government Aid distributions. She explained that, without LGA, the city must fund services and capital needs largely through property taxes and listed recommended levies that include $990,753 for bond repayments, a $2,010,000 street CIP levy to avoid borrowing for five-year street projects, $300,000 for equipment purchases, $278,788 for stormwater, and $92,000 for the special parks fund.
Wobbsie also laid out personnel and operating assumptions built into the budget: a proposed 4.44% adjustment to the city salary matrix (comprised of a 3% cost-of-living adjustment, a 1% market adjustment and a 0.44% increase to offset state-mandated paid leave premiums); funding for two vacant positions to be filled as needed; health-insurance cost pressures; and funds to replace aging accounting and permitting software.
After the presentation the council opened the public hearing; no members of the public came forward and the hearing was closed. Council Member Muron moved to adopt Resolution 2025-43 approving the general fund budget for the 2026 fiscal year; Council Member Kroll seconded. The mayor ordered a roll call and the resolution passed with ayes recorded by roll call.
Later the council considered Resolution 2025-44, the final tax levy payable in 2026. Council Member Miron moved adoption, Council Member Scribe seconded, and the council approved the levy by roll call.
Mayor Mary White thanked staff for preparing the budget during a difficult cycle of changing state policy and rising costs. The council also approved several consent items earlier in the meeting, including the hiring of two probationary firefighters and a donation to the Hugo Fire Department.
The approved budget and levy resolutions take effect immediately as the council recorded them; staff will proceed with the implementation steps outlined in the Finance Department’s presentation, including accounting and software updates.
