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07-23-12 SCCSPECIAL CITY COUNCIL MEETING OTSEGO CITY HALL July 23, 2012 *6:00 PM Call to Order. Mayor Jessica Stockamp called the meeting to order at 7:04 PM. Roll Call: Mayor Jessica Stockamp; Councilmembers: Vern Heidner, Dan Scharber, Doug Schroeder and Tom Darkenwald. Staff: Lori Johnson, City Administrator; Gary Groen, Finance Director and Tami Loff, City Clerk. 1. Tile Issue. CM Scharber motioned to approve replacing the carpet with tile up to the wall of the reception counter and hallway on the lower level. Seconded by CM Darkenwald. All in favor. Motion carried. 2. 2013 Budget. City Administrator Johnson reviewed the staff report and presented a PowerPoint presentation on the preliminary 2013 budget, tax levy, and reserve fund levies. She indicated that staff is requesting input from Council on the proposed budget including program changes, staff reorganization, levels of service, cost of living adjustment, and funding strategic planning goals. City Administrator Johnson reviewed market value and tax capacity data. CM Darkenwald asked staff to provide comparative market value and tax capacity data for St. Michael and Monticello. Reserve fund levies were discussed in depth. Finance Director Groen went through the financial data for each fund and responded to questions from the Council. The Council concurred with all of the proposed 2013 reserve fund levies. Finance Director Groen presented the proposed debt levies and the City's outstanding debt obligations. CM Scharber asked for future material to include each bond's interest rate. The City Council recommended exploring refinancing. City Administrator Johnson said that City staff will work with the financial advisors on refunding and restructuring options. Finance Director Groen and City Administrator Johnson presented summary information on the preliminary 2013 General Fund budget. They reviewed all General Government department budgets with the Council. The City Council directed City staff to reorganize to start a Community Development department. No other changes were made. The Public Safety department budgets were reviewed. The budgets were discussed and no changes were made. The next scheduled budget meeting is August 13 to review the Public Works and Recreation department budgets. 3. Any other items. 3.1 Wright County Sheriff/Probation. There was discussion of relocating the Sheriff's department's Otsego office to 8899 Nashua and the use of City Hall for Wright County Sheriff Department probation meetings with probationers. The City Council said they had not approved this use and only became aware when clients were noticed going into the office when Public Works Subcommittee meetings were held. City Administrator Johnson stated that to her knowledge this has been going on for several years. The Council expressed concern with the potential conflicts of public recreation use at 8899 Nashua and the probationers. CM Scharber motioned that no probation meetings can be held at the City facilities. Seconded by CM Darkenwald. All in favor. Motion carried. 4. Adjourn. CM Scharber motioned to adjourn. Seconded by CM Schroeder. All in favor. Motion carried. Adjourned at 9:31 PM. qpqw(316r�, ,D��,� Mayor Jessica Stockamp ATTEST: �J Tamil Loff, City Clerk *immediately following the adjournment of the City Council meeting at 6:00 PM. 2