03-16-09 SCCCITY OF OTSEGO
SPECIAL CITY COUNCIL MEETING MINUTES
March 16, 2009
Roll Call: Otsego City Council: Mayor Jessica
Stockamp, Councilmembers Dan Scharber, Mark
Thorsted, Tom Darkenwald and Vern Heidner.
City Staff: City Administrator Michael Robertson,
Finance Director Gary Groen and Public Works
Supervisor Brad Belair.
1. Mayor Jessica Stockamp will call the meeting to
order.
Mayor Stockamp called the meeting to order at 5:40
p.m.
2. Review of Potential 2009 Budget Cuts
Finance Director Groen reviewed the City's current
financial condition. In 2008, the City received
more revenue than anticipated, primarily due to
payment of back taxes by the hotel. The City also
did not spend its entire budget due to staff efforts
to cut back in the last few months as the economy
worsened. Because of this the City's fund balance
has increased to 40% of the 2009 budget. The State
Auditor recommends that fund balances be between 35-
50% of the budget and the City's auditor recommends
40-45% so the City meets both standards.
Groen noted that the State had cut $187,921 from
City aids in 2009, which is 4.8% of the budget.
Administrator Robertson said that the City had only
budgeted to receive 95% of its tax levy in
anticipation of these cuts. He added that the City
should still make cuts from the budget because no
one could determine how long the recession would
last and the City should plan to build up a reserve
in case things became worse.
Robertson and Public Works Supervisor Belair
reviewed possible budget cuts. Council discussed
the options. The Council decided to carry the
meeting over until Monday, March 23 at 6:00 p.m. to
make the final decisions. Robertson was directed to
prepare a resolution listing the budget cuts and the
reasons for them for adoption that evening.
In addition, Council asked staff to break out future
Park Equipment replacement costs by park, to list
the land purchased for a future fire station as an
asset on the financial information and to go out for
bids on the newsletter.
The Council also set a workshop for Wednesday, April
8 at 5:30 p.m. to review Capital Equipment needs for
the Public Works and Parks departments for the next
few years.
The meeting was continued until Monday, March 23 at
6:00 p.m.
Michael obertson
City Administrator