2024.09.09 Special City Council Meeting MinutesSPECIAL OTSEGO CITY COUNCIL MEETING
MONDAY, SEPTEIVIBER 9, 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: Assistant City Administrator/Human Resources Sabrina Hille, City
Planner Dan Licht, and City Clerk Audra Etzel.
1. Closed Session —Develop Offer for the Purchase of Real Property (MN Statute 13D.05,
Subd. 3. C-3).
Mayor Stockamp stated this meeting will be closed in accordance with Minnesota Statute
13D.05, Subd. 3. (C-3) to develop an offer for the purchase of property at PIDs #118-254-
002010, 118-254-0020201 118-800-261200, 118-800-261400, and 118-500-321100.
CM Dunlap motioned to close the meeting at 5:33 PM to enter a closed session to discuss PID
#118-254-002010, 118-254-002020, 118-800261200, 118-800-261400, and 118-500-321100 in
accordance with Minnesota Statute 13D. 05, Subd. 3, C-3 to develop offers for purchases of
real property, seconded by CM Goede. All in favor. Motion carried 5-0.
CM Goede motioned to close the closed session at 6:42 PM, seconded by CM Dahl. All in
favor. Motion carried 5-0.
CM Goede motioned to reopen the special meeting at 6:42 PM, seconded by CM Moores. All
in favor. Motion carried 5-0.
CM Dahl motioned to direct City Attorney Kendall to disclose the appraisal for PID 118-500-
321100 and authorized staff to make an offer as discussed in the closed session, seconded by
CM Goede. All in favor. Motion carried 5-0.
CM Goede motioned to make offer as discussed in the closed session for PID 118-254-0020101
seconded by CM Dahl. All in favor. Motion carried 5-0.
CM Dahl at 6:46 PM motioned to continue this special meeting following the 7pm City Council
meeting, seconded by CM Goede. All in favor. Motion carried 5-0.
Mayor Stockamp motioned to reopen the special meeting at 7:25 PM, seconded by CM
Goede. All in favor. Motion carried 5-0.
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MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING SEPTEMBER 9, 2024
City Attorney Kendall, City Engineer Wagner and Utility Manager Neidermeier did not return to
the meeting.
2. 2025 Budget, Tax Levy and Capital Improvement Plan Review.
Assistant City Administrator/Human Resources Hille reviewed the budget meeting #5 materials
included in the packet. Staff is seeking Council input and direction during these budget review
meetings to move the budgeting process forward effectively and efficiently.
Hille reviewed the four prepared Property Tax Levy options provided in the packet; staff is
looking for direction to move forward.
CM Dahl would like to discuss city commission stipends and employee benefits. Hille said the
health benefit numbers are not final at this time; an estimate was used for budgeting. Mayor
Stockamp said there was discussion to increase the current commissioner pay, current pay is
$10 per meeting, and $20 per meeting for Planning Commission. CM Moores would like staff to
research surrounding communities pay for commission members. Hille will research and bring
back to City Council for review at a future meeting.
CM Dunlap does not like any of the four options since he feels they lock in the bond, stating the
honest number is $1.7 million, not the $514,799 estimated in Option D for the lease payment.
CM Dunlap would like to see a full lease payment included. CM Dunlap would approve and
support a 3% increase to the total levy; he feels cuts could be made to the budget. Staff
requested direction on what should be cut or reviewed to achieve that. CM Dunlap noted the
potential cuts could be to the IT project, park projects, and COLAs. Mayor Stockamp will check
with surrounding cities regarding COLAs, and council can further discuss this prior to the Final
Levy approval in December. There was discussion on the concern of delaying the IT project.
Mayor Stockamp said funds have been put into the fire reserve in the past to start to save for
the fire department. CM Dunlap said City Council discussed ending the fire reserve in 2023 with
the creation of fire department and now there is funds allocated to it in the amount of
$190,000. Hille noted the reserve funds had been included and reviewed prior to tonight. Hille
noted there have been comments regarding inequities of emergency services with having
different responding departments.
City Council had a lengthy discussion regarding the options provided. City Council considered
the option to include an interest payment for next year. Hille said it is common for interest only
payments on bond debt payments for the first year. City Council discussed the remaining fund
in the fire reserve and fund balances, which could be used to reduce debt or assist in a future
payment.
The majority of City Council agreed and directed staff to use the green Preliminary Levy option
from the August 26, 2024 meeting for the September 23, 2024 Preliminary Levy Presentation.
Hille said staff can prepare different financial options; including reserve options, commissioner,
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MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING SEPTEMBER 91 2024
and COLA options at a later date as this is just a Preliminary Levy and there is time until
December.
Hille said the City Council will need to adopt a preliminary levy at the September 2:5 meeting,
this amount will be used on the Truth in Taxation statements.
Adjourn.
CM Goede motioned to adjourn at 8:57 PM, seconded by CM Dahl. All in favor. Motion
carried 5-0.
Minutes prepared by City Clerk, Audra Etzel.
City of Otsego:
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Jessic� Stocl<amp, Mayor
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