Special City Council Meeting Memo 2022.09.12
City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163
TO: Mayor and City Council
FROM: Adam Flaherty, City Administrator & Finance Director
DATE: September 12, 2022
SUBJECT: Special City Council Meeting Agenda
This memo is intended to serve as a brief introduction and outline of what to expect for each item
included on Monday’s Special City Council meeting agenda.
1. Progress Report: Public Works & City Hall Facility Study
Council will be joined during this portion of the meeting by representatives of Northland
Securities, Inc. and Wold Architects and Engineers to continue discussions on the study.
PowerPoint Slides
A slideshow presentation has been included within the packet. This material includes both new
information and slides that have been reviewed with the City Council throughout the facility study.
Representatives from Wold will focus discussion on the new information, but the previously
reviewed slides are included as a refresher and for reference during the discussion.
Financial Information
This will be the first meeting where the financial considerations of the facility study will be
discussed with the City Council. Based on that, staff has not been provided specific direction on
what to prepare, so what has been included is intended to be a starting point for the discussions.
Northland and City staff have been working to develop data on the financial impacts of the
projects included within the facility study. Included within the packet is a summary level of debt
service and tax related components. Additional financial information has been prepared to provide
a framework to prepare updated financial considerations depending on City Council direction.
City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441‐4414 Fax (763) 441‐9163
2. 2023 Budget, Tax Levy and Capital Improvement Plan Review
To date, Council and staff have engaged in six previous meetings to discuss the budgets and
property tax levies for 2023.
The Council will need to adopt the preliminary property tax levy, which is the maximum amount
the City can levy for taxes payable 2023. This action will take place at the regular Council meeting
on the 26th of September. It should be noted that the preliminary property tax levy is the amount
used for truth‐in‐taxation notices that are sent to the taxpayers by Wright County.
The final budget and property tax levy will not be adopted by the City Council until December.
Changes to the budget can still be made between now and then but increases to expenditures
become difficult because the primary revenue source to pay for those increases is property taxes.
The property tax levy can be decreased between now and then, but the levy cannot be increased.
Property Tax Levy
Attached with the packet for this meeting, is an updated summary that includes several scenarios
for the 2023 property tax levy. It should be noted that the City Council has not provided specific
direction on what to prepare, so what has been included is intended to be a starting point for the
discussions.
Staff would be seeking Council consensus at the end of this meeting on what to prepare for the
preliminary tax levy adoption at the September 26, 2022, meeting.
Materials Attached for Discussion
1) Facility Study – PowerPoint Slides
2) Facility Study – Summary Financial Data
3) Budget – Changes Tracking Summary
4) Budget – General Fund Summary
5) Property Tax Levy – 2023 Scenarios
6) Property Tax Levy – Future Year Levy Summary