09-13-21 Special City Council MinutesCITY OF OTSETO SPECIAL CITY COUNCIL MEETING
SEPTEMBER 13, 2021
CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING
MONDAY, SEPTEMBER 13, 2021
6:00 PM
OTSEGO PRAIRIE CENTER
Call to Order.
Mayor Jessica Stockamp called the Special Meeting to order at 6:00 PM.
Mayor Jessica Stockamp; Councilmembers: Tina Goede, Tom Darkenwald, Jeff Dahl, and
Brittany Moores. City Staff: City Administrator/Finance Director Adam Flaherty, Human
Resources/Assistant City Administrator Sabrina Hille, Streets Operations Manager Kevin Lamson,
Parks and Recreation Director Ross Demant, and City Clerk Audra Etzel.
1. 2022 Budget, Tax Levy and Capital Improvement Plan Review.
City Administrator/Finance Director Flaherty reviewed the budget meeting #7 materials which
included a memorandum, general fund budget summaries, and a tax levy summary as outlined
in the packet. Staff is seeking Council input during these budget review meetings in order to
effectively and efficiently move the budgeting process forward.
City Administrator/Finance Director Flaherty reviewed the following:
Pay Plan Assumptions were discussed at the May 24th meeting, including a 3% cost of living
increase (COLA); comparable to neighboring cities which averaged 3.09%. The Consumer Price
Index (CPI) was also reviewed, starting at 3% in March, up to 4.6% in May and most recently
6.5% in July. CM Darkenwald said they will have to monitor the higher inflation and will need
to review next year, nothing he is comfortable with 3%. CM Goede noted the CPI has changed
since May.
Benefits Assumption were reviewed, the following are estimated increases: Health 10%, Dental
5% and Disability/Life Insurance 3%. Staff is working to finalize the renewals of the City's
policies with the insurance providers. CM Dahl asked about the portion paid in by employees.
City Administrator/Finance Director Flaherty said the City has a maximum contribution towards
the policies. CM Dahl asked about the COLA being enough to cover insurance increases.
Human Resources/Assistant City Administrator Hille said the deductibles are $4,500 for single
and $9,000 for family, this coming year they are planning to add a super tier with in -network
providers for a reduced deductible. City Administrator/Finance Director Flaherty noted the HSA
contribution amount increased in 2021 from $1,000 to $1,500 due to the rising deductibles.
Staffing changes are proposed to include: Administrative Internship (possible $3,500 grant
option), PT Finance Assistant, FT Street Maintenance I, and FT Park & Recreation Operations
Coordinator. Staff provided additional overview and discussed hiring timelines and budget
impacts. CM Darkenwald asked how many hours the current PT Finance Assistant works? City
Administrator/Finance Director Flaherty said 18-22 hours, depending on the week. CM
Darkenwald asked about hiring a FT Finance Assistant vs. two PT Finance positions as an
option. City Administrator/Finance Director Flaherty said that is an option to consider. The FT
Street Maintenance I would most likely be a June hire and the Parks and Recreation Coordinator
would be a possible May hire. Mayor Stockamp asked about the benefits of hiring a Park &
Recreation Operations Coordinator. Parks and Recreation Director Demant said as they talked
through what type of position. The Park and Recreation Operator Coordinator in addition to
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CITY OF OTSETO SPECIAL CITY COUNCIL MEETING SEPTEMBER 13, 2021
park maintenance and recreation would do crossover duties between the departments. Such as
overseeing certain contracts, building maintenance, allowing for more multifaceted tasks. CM
Darkenwald asked if the Parks Department was the best place to add this position? City
Administrator/Finance Director Flaherty explained they would like to have one person
completing these duties. Parks and Recreation Director Demant said they looked at the parks
needs and some staff are helping in both parks and recreation; giving examples of the summer
breakdown 80% P&R and 20% additional tasks vs. the winter breakdown 60-70% P&R and 40-
30% additional tasks, for example coordinating the building maintenance. CM Goede said the
title sounds like staff wants someone to oversee facilities, she thinks the title of the operation
coordinator as a higher level position or manager. Mayor Stockamp asked if less seasonal
positions would be hired with the creation of this position, Ross said yes. CM Darkenwald asked
about using existing staff and hiring someone at a lower level. Human Resources/Assistant City
Administrator Hille said the job descriptions could be modified. Mayor Stockamp also asked
about using existing staff. City Administrator/Finance Director Flaherty said the seasonal
positions are typically June -August, there are significant duties to be completed in the spring
and fall. Parks and Recreation Director Demant Ross said a seasonal Park Maintenance position
is hard to fill. CM Moores asked about seeing the financial impact. Administrator/Finance
Director Flaherty said the budget impact is approximately $51,000 for a May hire with benefits.
CM Darkenwald noted there is more work as the City continues grows, he is just trying to
understand the transition to a 40 -hour position. CM Moores would like to see an example of
daily tasks. Mayor Stockamp noted she is struggling with the title of the position.
CM Darkenwald at 6:55 PM motioned to reconvene this special meeting following
the 7 PM City Council meeting, seconded by CM Goede. Roll Call: In favor; Goede,
Stockamp, Darkenwald, Moores and Dahl. Against: none. Motion carried 5-0.
Mayor Stockamp reconvened the special meeting at 7:39 PM
City Administrator/Finance Director Flaherty said the Park's position will need more outlined
information. Does the City Council want to include the funds in the preliminary budget on
September 27th and have the option to remove before the final budget adoption in December?
After further discussion, the City Council concurred to remove the staff addition from the
budget. The City Council agreed they would like to see more details regarding the proposed
position.
City Administrator/Finance Director Flaherty reviewed the following:
Contracted Services included: Assessor, Building Official & Inspections, Law Enforcement and
Fire Protection. The City Council concurred as presented.
City Administrator/Finance Director Flaherty said there are unique expenses in the budget.
Elections are held every other year with approximately $69,000 in the 2022 budget. IT has
funding for information security analysis working with a third parry to do a comprehensive
information security analysis. The Comprehensive Plan was last updated in 2012, approximately
$38,000 was included in the budget.
City Administrator/Finance Director Flaherty reviewed the budget summary: noting a $757,738
increase (11.5%). The budget breakdowns were presented. With the changes discussed
tonight, the budget will be reduced with the removal of the full-time position. CM Dahl asked
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CITY OF OTSETO SPECIAL CITY COUNCIL MEETING SEPTEMBER 13, 2021
why franchise fees were declining? City Administrator/Finance Director Flaherty, less customers
paying for cable.
The proposed levy for September 27th is $8,585,005 with all the information currently available
and maintain the rate of the current year which is 34.653. A median valued home with the
appraised value from Wright County, the value of that home increased over 12%, but their
taxable market value increased over 14%. The City is maintaining the tax rate, however the
value increase is driving up the tax by 13% on the City portion; it is tied to the value of the
home increasing.
Mayor Stockamp motioned to call for a special meeting on September 27, 2021 at 6
PM to meet with the Wright County Sheriff's contract and discuss franchise fees,
seconded by CM Dahl. Roll Call: In favor; Goede, Stockamp, Darkenwald, Moores
and Dahl. Against: none. Motion carried 5-0.
CM Darkenwald asked about the Franchise Fee funds. City Administrator/Finance Director
Flaherty said the funds would go into the pavement management fund (franchise fees, property
taxes, special assessment and state aid), not in the general fund budget.
The Council will adopt the Preliminary Tax Levy for Taxes Payable 2022 at the September 27th
meeting as a consent agenda item.
The final budget and property tax levy will not be adopted by the City Council until December,
so changes to the budget can still be made between now and then. Noted, the property tax
levy can be decreased, but the levy cannot be increased. The City Council concurred as
presented.
2. Adjourn.
CM Darkenwald motioned to adjourn the meeting at 8:20 PM, seconded by CM
Goede. Roll Call: In favor; Goede, Stockamp, Darkenwald, Moores and Dahl.
Against: none. Motion carried 5-0.
(ti
Ma or Jessica Stockamp
ATTEST: "
! �L—
Audra Etzel, City Clerk
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