2023.04.10 Special City Council MinutesSPECIAL OTSEGO CITY COUNCIL MEETING
MONDAY, APRIL 10, 2023
5:30 PM
OTSEGO PRAIRIE CENTER
Call to Order:
Mayor Stockamp called the meeting to order at 5:30 PM.
R�II Call:
Mayor Jessica Stockamp and Councilmembers: Brittany Moores, Tina Goede, and Ryan Dunlap.
City Staff: City Administrator/Finance Director Adam Flaherty, Assistant City
Administrator/Human Resources Sabrina Hille, City Planner Daniel Licht, City Engineer Ron
Wagner, and City Clerk Audra Etzel. Absent Councilmember Jeff Dahl. City Attorney Dave
Kendall arrived at 6:20 PM.
1. Wright Countv Assessor's Office — Discussion on UacominR Local Board of Appeal and
Equalization Meeting.
City Administrator/Finance Director Flaherty introduced the Wright County staff: Mike
Vanderlinden, Jamiee Jensen, and Tammy Anderson. Mr. Vanderlinden said their office called
for the meeting to prepare for the upcoming Local Board of Appeal and Equalization meeting.
Ms. Anderson presented a power point presentation and the property Taxation Timeline was
reviewed. The sales ratio study period is October 1, 2021 to September 30, 2022. There have
been 104 calls to -date regarding valuations and 16 appointments have been made to review
the property and look for any discrepancies. Mayor Stockamp asked why the other callers are
not having reviews. Mr. Vanderlinden said the other callers were able to get their questions
answered.
Mr. Vanderlinden said the Mississippi Pines development had 71 properties that had their land
adjusted twice (approximately 2-3% difference). Wright County has made the corrections and
sent a letter to all the affected properties.
Mr. Anderson reviewed the LBOAE meeting process and the options City Council can take. The
Minnesota Department of Revenue (DOR) requires a review of the property before any
adjustments can be made to the value. The values of the property can be 90-105% of the
market value.
The Wright County Board of Appeal and Equalization is scheduled for June 12, 2023,
appointments are required by June 5, 2023.
The City Council wants to have the packet information available the Friday before the meeting.
Additionally, the City Council would be interested in definitions when describing properties.
City Administrator/Finance Director Flaherty suggested any property owners showing up at the
meeting without having contacting the Assessor's Office to consider taking their information
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MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING
APRIL 10, 2023
and reconvene their request until the Wright County Assessor's Office can review. Ms. Jensen
said their office will review based on City Council direction.
The City Council thanked the Wright County Assessors for coming to the meeting.
2. Pavement Management —Review and Discuss Funding Policy.
City Administrator/Finance Director Flaherty distributed a report prepared by City Council
Member Dunlap regarding special assessments.
CM Dunlap outlined his report, he noted there are two reasons why he would like to reconsider
special assessments: current litigation regarding special assessments within other cities and the
market. CM Dunlap has concerns about the assessments meeting the special benefit test.
Mayor Stockamp said the previous policy was a 50/50 cost share. The City Council reviewed the
special assessment policy and agreed a small portion ($1,092) should be cost shared with the
benefiting properties. City Administrator/Finance Director Flaherty said the amount was
$1,000 and increased to $1,092 in 2022; the City Council capped the amount going forward.
CM Dunlap thought $1,092 would need to be proven as a value if there was litigation. City
Attorney Kendall said it would not be an issue to prove a benefit of $1,092, as it plays into the
sale of the property.
City Administrator/Finance Director Flaherty said over the next 10-years about $740,000 is
projected from special assessment paid by residents, which is a small portion of the Street
Management Funding. Staff can prepare further numbers to calculate out the impact on a
median value home. Mayor Stockamp would like to see the funding difference if special
assessments were not collected.
CM Dunlap would still like to remove special assessments and have the funding come out of the
property tax levy.
City Attorney Kendall noted the City of St. Paul litigation for special assessments was for street
maintenance: street sweeping and mill & overlay. City Engineer Wagner explained the process
for a mill and overlay vs. a reclaim. City Attorney Kendall said an appraiser would testify more
than $1,092 in value is received to the property and he would have no issue with litigation.
City Administrator/Finance Director Flaherty will review the funding with CM Dunlap. Staff will
have a recap during the upcoming budget review.
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MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING
APRIL 10, 2023
3. Adjourn.
CM Goede motioned to adjourn at 6:56 PM, seconded by CM Moores. All in favor. Motion
carried 4-0.
ATTEST:
Jessifa Stockamp, Mayor
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