06-13-22 Special City Council MinutesOTSEGO CITY COUNCIL SPECIAL MEETING
MONDAY, JUNE 13, 2022
5:30 PM
OTSEGO PRAIRIE CENTER
Call to Order.
Mayor Stockamp called the meeting to order at 5:30 PM.
Roll Call:
Mayor Jessica Stockamp; Councilmembers: Tina Goede, Brittany Moores, Jeff Dahl, and Tom
Darkenwald. City Staff: City Administrator/Finance Director Adam Flaherty; Human Resources/Assistant
City Administrator Sabrina Hille; and City Clerk Audra Etzel.
Those indicated with a (*) attended via video conference.
1. BerganKDV — Presentation of 2021 Audit
Nancy Schulzetenberg, BerganKDV (*) presented the audit findings that included the review of the
Communications Letter. The auditors expressed an unmodified opinion on the City's financial statements.
Ms. Schulzetenberg stated the PFA funding was tested due to being over $750,000, issuing an
unmodified opinion; clean report. Ms. Schulzetenberg also noted testing of the MN Legal Compliance
had no findings.
CM Darkenwald asked about the general revenue taxes for 202160.5% vs 2020 51.1%, what was the
2019 percentage? City Administrator/Finance Director Flaherty said 2019 was 64.7% and 2018 65.5%,
being a slight decline.
The Annual Comprehensive Financial Report is on the regular City Council meeting consent agenda for
adoption this evening.
2. 2023 Budget, Tax Levy and Capital Improvement Plan Review.
City Administrator/Finance Director Flaherty reviewed the following budget information in detail as
outlined in the packet.
• Special Revenue Funds, reviewing the eight funds, with only three tax increment district funds
having adopted budgets.
• Debt Service Funds, stating that there are four debt service funds with only two having adopted
budgets and the other two were paid in full at the end 2021; propose closing the two funds at a
future City Council meeting in 2022.
• Assumptions in relations to personnel; staff has prepared a comparison for COLA's ranging from
3% to 6% for City Council consideration. Staff will prepare additional data for the next budget
meeting.
• Penalties for delinquent account balances are currently at 5%, the rate before the COVID-19
pandemic was 10%. City Council agreed to continue the late payment fee at 5%. Staff was
directed to prepare an ordinance amendment.
• Property Tax Levy information was also reviewed; at this time much of the information being
used is estimates with the 2023 tax capacity and market value increasing approximately 20%.
Market Value conditions have changed significantly.
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MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING
JUNE 13, 2022
City Administrator/Finance Director Flaherty noted the next budget meeting is June 27th. Staff will
review the Capital Improvement Fund Levy's.
3. Parks and Recreation Director Recruitment (Verbal Update
Human Resources/Assistant City Administrator presented a general outline for the recruitment of the
Parks and Recreation Director position. The schedule included posting, interviews, final interviews, City
Council approval and an anticipated start date in October. Staff does not have any recommendations to
change the job description. Mayor Stockamp said she wanted to make sure applicants would be aware
of snow plowing as being included in the other duties. The final interviews with City Council are
proposed for Tuesday, August 23rd
4. Adjournment.
CM Darkenwald motioned to adjourn at 6:47 PM, seconded by CM Goede. All in favor.
Motion carried 5-0.
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Audra Etzel, City Clerk
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mayor Jessica Stockamp