Hugo council adopts 2025 budget and final tax levy; finance director outlines impacts

The Hugo City Council adopted the proposed 2025 general fund budget and the final tax levy at its Dec. 2 meeting following the required truth‑in‑taxation public hearing.

Finance Director Anna Wobbsie presented the budget and levy. She said Hugo did not receive any Local Government Aid (LGA) in 2024 and explained how changes to the homestead market value exclusion and an overall market‑value decline will affect tax capacity for Pay 25. Anna identified the city’s three bond issues totaling $15,145,000 and said the 2025 levy for bond principal and interest is $997,855. Staff presented a preliminary levy adopted in September of $12,847,855 (a 4.3% increase over the 2024 levy of $12,318,875) and described a recommendation to add $850,000 to the street CIP levy — bringing the street CIP levy to $2,010,000 — to fund a recently updated five‑year street CIP without borrowing.

Anna also described personnel and benefit items in the general fund: a 5% adjustment to the salary matrix (3% COLA plus 2% matrix adjustment) and step increases, with a total general fund cost for those adjustments of $140,500. Health insurance premiums were cited as increasing 13.4% for 2025. Staff said the total 2025 general fund budget is up $223,298 compared with the prior year.

After the presentation and a public hearing with no public commenters, the council approved Resolution 2024‑60 adopting the general fund budget for fiscal 2025 and then approved Resolution 2024‑61 certifying the final tax levy payable in 2025 by roll call vote.

Quote: Finance Director Anna Wobbsie told the council, “The City of Hugo is one of 94 cities that do not receive any LGA funds.”