2024.11.20 Special City Council MinutesSPECIAL OTSEGO CITY COUNCIL MEETING
WEDNESDAY, NOVEIVIBER 20, 2024
6*00 PM
Call to Order:
Mayor Stockamp called the meeting to order at 6:00 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, Utility Manager
Kurt Neidermeier, 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 PID #118-500-311100.
CM Moores motioned to close the meeting at 6:01 PM to enter a closed session to discuss PID
#118-500-311100 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 Dahl motioned to reopen the special meeting at 6:15 PM, seconded by CM Dunlap. All in
favor. Motion carried 5-0.
CM Moores motioned to direct staff to make an offer for PID 118-500-311100 in the amount
as discussed in the closed session, and authorize the City Attorney to prepare a purchase
agreement, seconded by CM Dunlap. All in favor. Motion carried 5-0.
2. 2025 Budget, Tax Levy and Capital Improvement Plan Review.
City Administrator/Finance Director Flaherty outlined the Budget Meeting #8 items that were
included in the packet.
General Fund Budget
Flaherty reviewed the packet material. The General fund budget is a balanced budget, with
expenditures totaling $9,940,102, compared with 2024, this is an increase of 5.52% These
expenditures are funded with property taxes being primary source of revenue, which accounts
for 70.34% of all revenues, which is comparable to 67.14% of all revenue in 2024.
CM Dunlap questions the Police Aid funds. Flaherty said the estimated revenue included in
earlier versions of the budget was less than what was received in 2024, so the revenue budget
for 2025 was increased accordingly.
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MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING NOVEMBER 20, 2024
Mayor Stockamp asked about year-to-date election expenses. Flaherty noted the election
judges have not been paid for the 2024 Geneal Election as of this meeting.
Utility Fund Budgets
Flaherty reviewed the packet material. The stormwater utility rates were reviewed today at the
Public Works Subcommittee, and it was recommended to increase based on a 3-year rate
catch-up and current ENR Index.
The stormwater utility fee increase would be part of the fee schedule and go into effect with
the January 2025 billing.
Council concurred to use the 3-year rate catch-up and current ERN Index for 2025.
Property Tax Levy
Flaherty reviewed the packet material. The Preliminary Property Tax Levy for Taxes Payable in
2025 is in the amount of $9,733,646, the maximum amount the City can levy and is the amount
used for truth -in -taxation notices.
Flaherty presented four Property Tax Levy Calculation options for the Council to consider,
noting each can still be modified.
Flaherty reviewed the 2025 capital improvement project levies. Mayor Stockamp asked if the
public works cold storage building was reviewed for longevity. CM Dahl and CM Dunlap said
the staff agreed the proposed building would meet the storage needs.
CM Dunlap asked if the City could bond for projects budgeted in the Capital Improvement
Revolving Fund. Flaherty said he would need to consult with Northland Securities.
Flaherty said if Council reduced the pavement management levy and used fund balance in lieu
of the Fire Reserve Levy, the levy increase would be reduced to approximately 4.50%. Flaherty
noted if the $190,000 is transferred, an interfund transfer resolution will need to be approved
by Council at a future meeting.
The majority of the City Council concurred with that approach. CM Dunlap disagrees and feels
the CIP is surplus funds and should be used to reduce the next years levy, and projects should
be prioritized to reduce costs to be more efficient.
Pay Plans
Flaherty reviewed the packet materials and distributed a memo outlining additional analysis of
COLA comparing data from neighboring communities and the Bureau of Labor and Statistics.
Staff is looking for direction on the COLA for inclusion in the final budget and pay plan adoption
at a future meeting.
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MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING
NOVEMBER 20, 2024
Council concurred to Keep the budgeted COLA of 4.00%. CM Dunlap said the Federal
Government is using 2.5% and is a fair number versus paying what the neighboring cities are
paying. Mayor Stocl<amp asked now the seasonal and temporary employees minimum or
maximum pay is determined. Flaherty said the maximum is typically reserved for long-term
returning seasonal employees.
Capital Improvement Plans
Flaherty reviewed the packet material. The Capital Improvement Plans have been reviewed by
the Administrative and Public Works Subcommittees, noting no purchases will be made without
Council approval.
Next Meetings
Flaherty said the Truth -In -Taxation meeting is scheduled for November 25, 2024 at 6pm, and
the final budgets and property tax levy should be adopted by the City Council on December 9,
2024.
The City Council concurred with cancelling the December 23rd meeting. Staff will add the
cancellation to an upcoming agenda.
CM Dahl discussed exploring additional time -off for employees and to examine the timing of
when time -off is accrued.
3. Adjourn.
CM Goede motioned to adjourn at 8:06 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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Audra EtzEl, CityCierk�
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