2023.08.14 Special City Council MinutesSPECIAL OTSEGO CITY COUNCIL MEETING
MONDAY, AUGUST 14, 2023
5:30 PM
OTSEGO PRAIRIE CENTER
Call to Order:
Mayor Stockamp called the meeting to order at 5:31 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.
1. Kittredge Crossing Parl< Shelter Repair —Review Funding Sources.
City Administrator/Finance Director Flaherty reviewed the Kittredge Crossing Park Shelter
Repair funding options included in the packet.
City Council discussed the options and directed staff to take the $81,423 as a transfer from the
capital improvements revolving fund. Staff will prepare an interfund transfer resolution for a
future meeting.
2. 2024 Budget, Tax Levy and Capital Improvement Plan Review.
a. Wright County Sheriff Contract.
b. New Revenue Sources.
City Administrator/Finance Director Flaherty said a new Wright County Sheriff's contract has
been received, noting some of the language has changed since current and previous year
contracts. Flaherty highlighted the changes.
City Council discussed the contract and the proposed changes. Flaherty noted the contract
would be presented at a future meeting for City Council approval. The City Council asked staff
to arrange for the Sheriff to join for a future meeting.
City Administrator/Finance Director Flaherty said the City will receive two new sources at the
end of 2023 and in 2024. The 2024 Certified Local Government Aid (LGA) formula allots
$73,598 to the City; LGA was last received in 2020. Staff does not expect the LGA funding to be
ongoing. Flaherty said the funds are not restricted and can be used in the general fund.
The 2023 Omnibus Tax Bill included $210 million in one-time public safety aid that will be
distributed to cities at the end of 2023. The City will be allotted $931,588 which is based on
2021 populations from the State Demographer. Flaherty provided a guide of eligible expenses
and discussed possible funding options. City Council agreed to use $105,577 of the funds
towards the Wrigth County Sheriff's Contract one-time increase for 2024. The Council also
discussed an allocation between law enforcement and fire protection expenditures. Staff will
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MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING AUGUS 14, 2023
develop a possible allocation and amortization schedule on the remaining funds for review at a
future budget meeting.
3. Cannabis Legislation — Review Impact.
a. Joint Powers Agreement for Cannabis Licensing and Regulation.
b. County Ordinance Regulation Cannabis Use in Public Places.
City Administrator/Finance Director Flaherty said Wright County had developed a proposed
Joint Powers Agreement (JPA) which would permit the County to enforce and regulate cannabis
in the City. The proposal would be consistent with the current regulation of tobacco products
in the City by Wright County. The City Attorney is in the process of reviewing the JPA. Staff is
recommending the City participate in the JPA.
Wright County has developed an ordinance that will regulate the use of cannabis in public
places throughout Wright County. The ordinance is in the process of being reviewed by the City
Attorney. The Administrative Subcommittee has had informal discussions on the impacts of
cannabis in the community and provided staff direction to prepare a City ordinance
amendment prohibiting the smoking of cannabis in City parks, which is consistent with the
current prohibition of smoking tobacco or similar products. Wright County is holding a public
hearing tomorrow to discuss their proposed ordinance which would regulate cannabis.
Hille said even if the City entered into the JPA, the City would still get their revenue allocation
from the State.
City Council discussed the JPA and Wright County's proposed ordinance regulating the use of
cannabis. City Planner Licht said the sale of cannabis can be regulated to certain zoning
districts.
Staff will have more information following the public hearing held by Wright County regarding
their cannabis ordinance.
4. Reauest for Financial Incentives —Discuss Reauest.
City Administrator/Finance Director Flaherty said RLR Investments, LLC has formally requested
financial incentives fora proposed project for RL Carriers. The primary request is for property
tax abatements and reviewed the other components of the request. Flaherty reviewed the
Economic Development Strategies and Priorities Policy, and is looking for direction if the City
wants to provide incentives. The Council discussed the project and how the request aligns with
the policy. After discussion the Council agreed not to move forward with the request for TIF or
abatement, but would consider assessments for development fees. Staff will relay the Council
direction to the applicant.
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MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING AUGUS 14, 2023
5. Ad'lourn,
CM Dunlap motioned to close the meeting at 6:49 PM, seconded by CM Dahl. All in favor.
Motion carried 5-0.
ATTEST:
Audra Etzel, City Clerk
i #a Stockarnp, Mayor
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