05-24-21 Special City Council MinutesCITY OF OTSEGO
SPECIAL CITY COUNCIL MEETING
MONDAY, MAY 24, 2021
5:30 PM
OTSEGO PRAIRIE CENTER
Call to Order.
Mayor Jessica Stockamp called the Special Meeting to order at 5:38 PM.
Mayor Jessica Stockamp; Councilmembers: Tina Goede and Brittany Moores. City Staff: City
Administrator/Finance Director Adam Flaherty; Human Resources/Assistant City Administrator
Sabrina Hille; City Planner Daniel Licht; and City Clerk Audra Etzel (*). Absent Councilmembers
Tom Darkenwald and Jeff Dahl.
This meeting is preceding under MN State Statute 13D.021 allowing members to appear by
telephone or video conference due to the ongoing health pandemic and state of emergency.
Those indicated with a (*) attended via video conference.
1. 2022 Budget, Tax Levy and Capital Improvement Plan Review.
City Administrator/Finance Director Flaherty handed out documents to Council to review. One of
the documents was an outline of the topics. Flaherty asked the City Council to outline any
priorities or expectations for the 2022 budgets.
Mayor Stockamp would like to research street speed limits: data collections, replacement sign
costs, and staff costs. Consider using 2021 funds or budget funds in 2022. City
Administrator/Finance Director Flaherty said state statue allows City's to regulate speed limits.
An engineering speed study would help support Council decision to consider changes based
upon the study. A speed study is not currently budgeted. The 2021 budget has a contingency
of $60,000; these funds could possibly be used to cover the expenses. After discussion, there
was interest amongst the Council to bring back when all the Council Members are in
attendance. Administrator/Finance Director Flaherty said he could include the costs in the
initial draft of the 2022 budget and the Council could decide if they want to proceed.
The Council discussed the fire reserve funds, setting the levy amount, and clean-up day
benefits.
Capital Improvements
City Administrator/Finance Director Flaherty had handouts regarding the property tax levy. The
tax levy for 2021 was $7.8 million. Based on what the county has provided for the total
estimated market value going into 2022, there should be 6.36% growth in net tax capacity. In
theory the council could increase levy by the same percentage without effecting the property
tax rate. The council looked at tax rates of other cities for comparison and found Otsego to be
very comparable. The council also discussed funding capital improvement projects and
equipment.
Cost of Living Adjustments (COLA)
City Administrator/Finance Director Flaherty said staff is looking for a starting point for the 2022
budget. The 2020 pay study showed the last 5 years had been on the low side. The 2021 pay
scale was adjusted by 6.25% (2.25% for COLA and 4% to correct the pay scale up to the
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market of comparable cities). The quarterly news release from the Bureau of Labor Statistics
for the Twin Cities showed a 3% consumer price index. The Council would like to start at 3%
and see more data as the budget process moves forward.
City Administrator/Finance Director Flaherty asked if Council would like to look at Council pay.
After discussion, it was agreed to see where Otsego compares with other cities. Staff will
research and bring back for review.
Policy Fund Balance
City Administrator/Finance Director Flaherty said the City's general fund has a policy that the
fund balance should be a minimum of 45% of next year's budget, this is to cover expense until
the first half taxes are received. In 2020 Council budgeted for 200 residential permit and 403
were actually received, not including commercial, industrial or other permits. The CARES funds
of $1.3 million were received and about half were used for public safety costs; which were
budgeted. There is a $2.4 million transfer in accordance with policy at the Council's discretion
to a Capital Improvement Project Fund. Council will wait until all Council members are available
to discuss where to transfer.
Fire Services
City Administrator/Finance Director Flaherty said Jerry Streich was present at a recent meeting
to discuss fire services. Mr. Streich has sent over an agreement for review. City staff
suggested the language in the agreement be adjusted to broaden the scope of evaluation
services. The City Attorney will review and staff will bring back contract on a future consent
agenda.
Future budget meetings scheduled for June 14th and June 28th at 5:30 PM.
2. Adjourn.
CM Goede motioned to adjourn the meeting at 6:37 PM, seconded by CM Moores.
Roll Call: In favor; Goede, Stockamp and Moores. Against: none. Motion carried 3-0.
ATTEST:
Audra Etzel, City Clerk
M4vor Jessica Stockamp
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