2024.08.26 Special City Council Meeting MinutesSPECIAL OTSEGO CITY COUNCIL MEETING
MONDAYI AUGUST 26, 2024
5:30 PM
OTSEGO PRAIRIE CENTER
Call to Order:
Mayor Stockamp called the meeting to order at 5:30 PM.
Roll Call:
Mayor Jessica Stockamp and Councilmembers: Brittany Moores, Tina Goede, Jeff Dahl, and
Ryan Dunlap. City Staff: City Administrator/Finance Director Adam Flaherty, Assistant City
Administrator/Human Resources Sabrina Hille, City Planner Dan Licht, and City Clerk Audra
Etzel,
1. 2025 Budget, Tax Levy and Capital Improvement Plan Review.
City Administrator/Finance Director Flaherty reviewed the budget meeting #4 materials
included in the packet. Staff is seeking Council input during these budget review meetings to
move the budgeting process forward effectively and efficiently.
Revenues
Flaherty reviewed the revenue budgets for the General fund. Mayor Stockamp asked what is
the balance of the public safety grant funds. Flaherty said about $180,000 after what was
allocated to the 2024 budget. CM Dunlap asked about the Local Government Aid (LGA)
formula. Flaherty said they are many factors for the formula and Otsego does not qualify for
any funding. CM Dunlap asked about the Recreation fee increase. Flaherty said there are more
revenues being generated by the increase in programs and participants.
Flaherty reviewed the expenditure budget changes since the first meeting in August as outlined
in the packet materials.
Capital Project Funds
Flaherty reviewed the cash flow summaries for the Capital Project Funds.
Pavement Management:
CM Dunlap asked what is the average cost per year. Flaherty said about $2,047,000 million
over 10 years. CM Dunlap asked about sidewalk replacement. City Planner Licht said the City
does not maintain the sidewalks; this is the homeowners' responsibility according to the
sidewalk policy.
Trail Management:
No comments.
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MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING AUGUST zo, 2024
amortization from four years to three years, the preliminary tax levy increase could be reduced
to 7.95%.
CM Dunlap asked if there will be different options for funding for the City Council to choose.
Flaherty said that he can prepare a few options for the City Council to consider for the
preliminary levy.
Flaherty said the City Council will need to adopt a preliminary levy by September 30tn
Adjourn.
CM Goede motioned to adjourn at 6:53 PM, seconded by CM Dahl. All in favor. Motion
carried 5-0.
Minutes prepared by City Cleric, Audra Etzel.
City of Otsego;
Audra Etzel, City Clerk
1
Jes`s4ca Stocl<amp, Mayor
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MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING AUGUST 26, 2024
Parks Capital Equipment:
CM Dunlap asked how the fund is used. Flaherty said this is for replacement, not additional or
new equipment. CM Dunlap asked about Park Dedication fees. Flaherty said the Park
Dedication fees are for new parks and expansion of equipment or amenities within an existing
park. City Planner Licht said there are guidelines for the required amenities for a park; not a
park per development, but within one mile of most residents. CM Dunlap asked if the fund is
intended to cover all replacement costs. Flaherty said this is the intent of the fund.
Revolving Capital Equipment:
CM Moores asked about equipment once fully depreciated. Flaherty said most equipment has
little resale value once it meets its useful life; funds from items sold are put back into the fund.
Fire Reserve:
CM Dunlap asked when the depreciation for the larger equipment will begin. Flaherty said the
depreciation of the larger equipment will need to be defined by 2027, when the fire
department is up and running. Flaherty noted the Council will have options to fund that
depreciation and that it will be discussed as part of the 2027 property tax levy. CM Dunlap
asked about the lease payment for the station. Flaherty said this would not come out of the
fire reserve, a separate debt service fund would be set-up; and noted there is no tax levy
component for debt service in 2025. Flaherty said there is an interest payment budgeted for
M25 which are accounted for in the bond proceeds. CM Dunlap asked if there is an estimated
debt service levy for 2026. Flaherty said the estimate will depend on the funding factors
decided by the City Council and EDA; 2026 will be the first levy to include the funding. CM
Dunlap would like to know the overall impacts for the Fire Department expenses for future
years. Flaherty said the 2026 expenses will mainly be contracted service rates with some
staffing in the fourth quarter of 2026. Flaherty asked City Council for direction on preparing
funding recommendations to be included in the 2025 levy. Mayor Stockamp asked for
clarification on the funding source of the small equipment in 2026. Flaherty noted this
expenditure will be funded with cash reserves currently in this fund and not part of the debt
issuance.
City Buildings &Property Maintenance:
No comments.
Property Tax Levy
Flaherty reviewed the tax levy summaries of 8.29%for taxes payable in 2025. He noted there is
an estimated decrease of 0.47% in tax capacity noting stabilizing or decreasing residential
values and the implementation of the change in homestead market value exclusion. The
median valuation is $386,400, for an estimated City tax of $942 or an increase of $14 in City tax
from the previous year median value.
Mayor Stockamp asked about allocation of the public safety grant funds. Flaherty reviewed the
percentage to be allocated the next three years. Flaherty noted that by modifying the
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