Item 3.2.B. 2025.06.09 Special City Council MinutesPage 1 of 2
SPECIAL OTSEGO CITY COUNCIL MEETING
MONDAY, JUNE 9, 2025
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: Ryan Dunlap, Tina Goede, and Corey Tanner.
City Staff: City Administrator/Finance Director Adam Flaherty, Accountant Julie Weiers (*), and
City Clerk Audra Etzel. Absent Councilmember Michelle Lund.
Attended via video conference (*).
1.2024 Audit – Presentation by BerganKDV.
Nancy Schulzetenberg, BerganKDV (*) presented the summary of the 2024 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 MN Legal Compliance,
which had no findings.
Flaherty noted the 2023 Public Safety Aid funds, per the City Councils request, is being allocated
over 3-4 years in the General Fund budget and the remaining balance is reported in the
restricted fund balance.
CM Dunlap asked about the 45% required fund balance. Flaherty said the verbiage looks at the
unassigned funds. CM Dunlap asked about the Vireo Health funds. Ms. Schulzetenberg said the
respective funds are in the assigned fund balance within the General fund.
CM Dunlap asked about the availability and connection revenues in the utility funds. Flaherty
clarified how those incoming funds are reported in the report, noting they are not operating
revenues, rather reported as capital contributions.
CM Dunlap asked about depreciation expense. Ms. Schulzetenberg noted that depreciation
expense is reported within the operating expenses for each utility fund. Flaherty said the
deprecation schedule depends on the useful life of an item.
CM Dunlap asked about the useful life of a stormwater pipe. Flaherty referenced that City
policy outlines useful lives of assets and is different for each type of asset. Flaherty said the
typical useful life for utility infrastructure assets are 40 years.
Flaherty outlined additional financial reporting requirements that staff will complete once the
City Council adopts the financial statements as official record.
Item 3.2.B.
MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING JUNE 9, 2025
Page 2 of 2
CM Tanner asked about the segregation of accounting duties. Flaherty noted this is a common
issue in smaller cities and outlined examples of compensating controls that provide the best
controls with the limited number of staff.
2.Adjourn.
CM Goede motioned to adjourn at 6:33 PM, seconded by CM Dunlap. All in favor. Motion
carried 4-0.
Minutes prepared by City Clerk, Audra Etzel.
City of Otsego
_________________________________
Jessica Stockamp, Mayor
ATTEST: ___________________________
Audra Etzel, City Clerk