08-04-03 WSCITY OF OTSEGO
BUDGET WORKSHOP
August 4, 2003
Roll Call: Otsego City Council: Mayor Larry Fournier,
Councilmembers Jerry Struthers, Vern Heidner, and Virginia
Wendel. Councilmember Scharber arrived at 6:15 p.m.
City Staff: City Administrator Michael Robertson, City Clerk
Judy Hudson, City Accountant Gary Groen, City Bookkeeper
Kathy Grover, and City Assessor Pete Merges.
Mayor Fournier called the workshop to order at 6:00 p.m.
REVIEW OF CITY ASSESSOR'S CONTRACT PROPOSAL
City Assessor Pete Merges was present to review his contract
proposal. He would like to be paid $10 a parcel in 2004.
Plus the County Assessor's office is implementing a $25 fee
for each new building to make up for the extra work done in a
building's first year. Pete would like a similar fee
implemented in Otsego.
There was considerable discussion of the new fee.
Administrator Robertson was directed to check with Wright
County to see if they are charging the fee consistently to
all local governments including townships. Pete Merges noted
there are more trips and paperwork that have to be done for a
new building. Robertson was also directed to find out what
nearby cities are paying for assessing.
Administrator Robertson estimated Assessor costs at $42,000
in 2004. He said the $25 fee would add somewhere between $2-
4,000 in additional costs. Council directed this contract be
placed on the next Council agenda.
REVIEW OF 2003 SEWER & WATER FUNDS
Administrator Robertson and Accountant Groen reviewed the
2003 water and sewer funds. They noted both funds were
making money before depreciation was accounted for.
Robertson said that People Service would do a rate study for
water and sewer for free and that he had told them to go
ahead. Robertson suggested that the Council review that
study which should be completed by the end of the year.
REVIEW OF PROPOSED 2004 BUDGET
Council reviewed the following items.
Salary Increase - Council agreed the proposed 3% increase was
ok.
Health Insurance Increase - Robertson reported that health
insurance was going up 26% and dental was going up 90.
Funding these increases would increase the City's General
Fund cost by $27,000. Council discussed various options for
reducing the costs. Robertson stated that changing to the
next lower health plan would save only $6,000. Robertson was
directed to see how much money could be saved by a
combination of insurance and self insurance on deductibles.
Mayor/Council - There were no major changes and Council was
ok with the proposed budget.
Finance Deipartment - There was an increase of $10,000 due to
Gary Groen's hours being increased. Council was ok with the
proposed budget.
Planning Commission - There were no major changes and Council
was ok with the proposed budget.
Police - Council agreed to add 8 hours per day to the budget,
bringing the total to 32 hours per day.
Code Enforcement - - Council was in consensus to keep code
enforcement within the Building Department because the
Building Inspector will often be the first person to check on
potential problems.
Mayor Fournier adjourned the meeting at 7:54 p.m., stating
that the next budget workshop is scheduled for Monday, August
18, 2003 at 6:00 p.m.