2023.06.12 Special City Council MinutesSPECIAL OTSEGO CITY COUNCIL MEETING
MONDAY, JUNE 121 2023
6:00 PM
OTSEGO PRAIRIE CENTER
Call to Order:
Mayor Stockamp called the meeting to order at 6:00 PM.
Roll Call:
Mayor Jessica Stockamp and Councilmembers: Jeff Dahl, Tina Goede, 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.
Those indicated with a (*) attended via video conference.
Ber�anKDV —Presentation of 2022 Audit.
Nancy Schulzetenberg, Berganl<DV (*) presented the summary of the 2022 audit that included
the review of the Communications Letter. The auditors expressed an unmodified opinion on the
City's financial statements. Ms. Schulzetenberg also noted testing of the MN Legal Compliance
had no findings.
CM Dunlap asked about the storm water fund. City Administrator/Finance Director Flaherty
explained that accounting standards require that some sources of funding such as property
taxes cannot be shown as operating revenue therefore contributing to the operating loss.
Flaherty explained that depreciation expense on developer contributed assets is driving the
increase in operating expenses and noted they are anon -cash expense and that the cash flow
statement for this fund is very healthy. CM Dunlap asked about other operating expenses for
the storm water fund. Flaherty said the inspections, maintenance, engineering, and staff time
get expensed against this fund.
The Annual Comprehensive Financial Report is on the regular City Council meeting consent
agenda for adoption this evening.
2. Pavement Management — Review and Discuss Funding Policy.
City Administrator/Finance Director Flaherty said this is a continuation of a previous discussion
regarding funding of pavement management. The 2023 Street Renewal Project is underway
and if there were changes, the City Council would need to provide direction to staff. Flaherty
reviewed two different revenue assumptions for the City Council to consider, one including
special assessments and the other without.
CM Dunlap asked about the special assessments for property owners on gravel roads. Flaherty
said the property owners) would need to petition the City for the pavement project and would
be responsible for 100% of the project costs through a special assessment. City Planner Licht
said the existing gravel roads usually go away with development and the developer pays.
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MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING
DUNE 12, 2023
Staff is looking for direction to move forward with the special assessment hearing or a policy
change.
CM Dunlap agreed with the assumptions prepared by staff, he would look to remove special
assessments for pavement projects. CM Dunlap said the City Council has done a good job
minimizing the cost to residents and would like to see the $1,092 go away and come out of the
property tax levy.
Mayor Stockamp said the new amount is a reduction from previous years and there are other
factors to consider.
CM Dahl said the past discussion was to have residents be invested in the pavement project by
having a special assessment portion.
CM Goede said her mind has not changed on special assessments. It's easier for the residents
to have a flat amount for the projects, $1,092,
CM Moores said the residents in 2022 were just billed for their pavement project and she finds
it hard to make it fair. CM Moores would like to continue with special assessments for
pavement projects at this time.
Mayor Stockamp said the difference she noted would be not needing the public hearing. The
meetings lead to open houses and these are good to keep the residents informed on the
project status. CM Goede agrees with the residents being allowed to voice their opinions and
get involved. Mayor Stockamp said the residents that did attend the recent public hearing
were happy to have the road completed. CM Moores agreed with the process allowing
residents to be up-to-date and involved in the project.
CM Dunlap asked if there have been legal costs associated with the special assessments.
Flaherty noted very little cost is associated with special assessments and typically involves
review of resolutions required by statute.
CM Dunlap motioned to direct City staff to prepare a policy change to eliminate special
assessments for pavement projects. Motion failed for lack of a second.
3. Ad'lourn.
CM Dunlap motioned to close the meeting at 6:55 PM, seconded by CM Moores. All in favor.
Motion carried 5-0.
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MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING
JUNE 12, 2023
ATTEST: " � 9
Audra Etzel, City Clerk
JesicaSt�ci<amp, Mayor
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