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2023.05.22 Special City Council MinutesSPECIAL OTSEGO CITY COUNCIL MEETING MONDAY, MAY 22, 2023 5:30 PM OTSEGO PRAIRIE CENTER Call to Order: Mayor Stockamp called the meeting to order at 5:31 PM. R�II CaIL• Mayor Jessica Stockamp and Councilmembers: Jeff Dahl, Brittany Moores, and Ryan Dunlap. City Staff: City Administrator/Finance Director Adam Flaherty, Assistant City Administrator/Human Resources Hille, City Planner Daniel Licht, and City Clerk Audra Etzel. Absent Council Member: Tina Goede, 1. 2023 Budget, Tax Levv and Capital Improvement Plan Revievv. City Administrator/Finance Director Adam Flaherty opened the discussion with talking points that will provide the opportunity for the Council to set priorities, expectations and provide direction to staff for preparation of the draft budget. Council Roundtable: Council shared comments they have received from the public regarding City services. Mayor Stockamp noted snow plowing complaints, recreation programs, water quality concerns, and code enforcement effectiveness. CM Moores noted code enforcement effectiveness, pavement conditions deteriorating, and the need to evaluate future funding for park rehabilitation and trail maintenance projects. CM Dunlap noted that when evaluating property tax impacts for 2024 that a broader range of values should be illustrated rather than just the median value. He also noted the funding for park rehabilitation and trail maintenance, his concerns about hiring new positions, and that he would like a reduction in the levy for 2024. CM Dahl noted off -road vehicle regulations, whether the City should be more active in monitoring efforts of the nuclear facility, and comparison information for City benefit plans. Public Safety: The Law Enforcement Contract with the Wright County Sherriff's will expire at the end of 2023. Staff will invite Sheriff Deringer to a future budget meeting to discuss terms and conditions of the contract. Property Tax Levv: City Administrator/Finance Director Flaherty reviewed charts included in the packet related to tax rates. The City's estimated increase is a 15% net tax capacity increase for 2024. Page 1 of 2 MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING MAY 22, 2023 Staffing Plan: City Administrator/Finance Director Flaherty reviewed the 2024-2028 Staffing Plan in summary, noting that each Subcommittee has reviewed this plan already. Staff will continue to work on job descriptions and budget impacts for consideration during the budget review process. Assumptions: City Administrator/Finance Director Flaherty said the compensation study is underway and recommends waiting for the data. CM Dahl discussed the loss of employees and what can be done to keep employees. Mayor Stockamp noted those that have left were for more money. The City Council discussed seeing the budget impacts of COLA of 4.25% based on discussion of the consumer price index in the packet. Fund Balance Policy- Calculation of Transfer: The City's fund balance policy outlines that the ending fund balance in the General Fund should be 45% of the subsequent years budget. The policy further outlines that any balance more than the defined 45% minimum, can be transferred to a capital reserve fund at the Council's discretion. City Administrator/Finance Director Flaherty reviewed the calculation, this will be an ongoing discussion through the budget process. Council discussed different options as to where to use the funds. The City's audit will be presented to Council in the next meeting June 12, 2023. Next Meetings: City Administrator/Finance Director Flaherty is proposing a condense schedule to have less meetings. Staff will present an updated proposed meeting schedule at a future meeting. 2. Adjourn. CM Dahl motioned to close the meeting at 6:52 PM, seconded by CM Moores. All in favor. Motion carried 4-0. " Audra Etzel, City Clerk f Page 2 of 2