Item 3.2.B. 2025.09.08 Special City Council MinutesPage 1 of 4
SPECIAL OTSEGO CITY COUNCIL MEETING
MONDAY, SEPTEMBER 8, 2025
5:30 PM
OTSEGO PRAIRIE CENTER
Call to Order:
Mayor Stockamp called the meeting to order at 5:33 PM.
Roll Call:
Mayor Jessica Stockamp and Councilmembers: Ryan Dunlap, Tina Goede, Michelle Lund, and
Corey Tanner. City Staff: City Administrator/Finance Director Adam Flaherty, and City Clerk
Audra Etzel.
1.2026 Budgets and Property Tax Levy:
City Administrator/Finance Director Flaherty reviewed the budget meeting #3 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.
Capital Project Funds
Flaherty reviewed the cash flow summaries for each of the fourteen Capital Project Funds.
Pavement Management: Fund 201
CM Dunlap inquired about the impact of the franchise fee rebates. Flaherty estimated $1,000-
$2,000 of refunds have been issued so far. CM Lund inquired about the cash balance
percentages at the bottom of the schedule. Flaherty discussed how they are calculated, what
their purpose is for evaluation, and noted the fund balances are healthy.
Trail Management: Fund 202
CM Dunlap asked about the life of a trail. Flaherty noted about 30 years before an overlay
would be required. Mayor Stockamp noted some trails have failed sooner.
Park Development Fund: Fund 203
CM Lund asked about the negative balances shown in future yea rs. Flaherty discussed the
Prairie Park Phase 1 Improvement costs shown and that the schedule is illustrating the need to
issue bonds or to phase the projects differently.
Parks Capital Equipment: Fund 205
CM Lund asked about the funding being less than the budgeted projects. Flaherty explained
that funding is shown as near-level funding annually and projects are staggered.
Capital Equipment Revolving Capital: Fund 206
CM Tanner asked about the revenue forecasts changing compared to the prior year. Flaherty
noted that inflation and timing of replacements/additions modify the calculations each year.
Item 3.2.B.
MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING SEPTEMBER 8, 2025
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CM Lund inquired about funds from the sale of assets. Flaherty identified those funds on the
schedule and noted that they are not forecasted for future years.
Fire Reserve: Fund 214
CM Tanner asked for more information on this fund. Flaherty noted this fund will be closed
once the department is operational and that a new fund will be created for future capital of the
department.
MSA Construction Fund: Fund 403
CM Lund asked how these funds will be used with no projects shown. Flaherty discussed the
types of projects that would qualify for this funding , noting that future collector road projects
are the most likely.
North Mississippi Watershed Fund: Fund 405
CM Dunlap asked how much of the area is in the Wild and Scenic. Flaherty did not have a n
accurate percentage prepared but noted there are portions that may not be developable. CM
Lund asked about the fee formula. Flaherty said the formula is based on acreage remaining in
the watershed.
Lefebvre Creek Watershed Fund: Fund 406
No comments.
Otsego Creek Watershed Fund: Fund 408
CM Tanner asked about the 2024 grant. Flaherty noted that was a grant from Wright County
for the Otsego Creek Rehabilitation project.
Crow River Watershed Fund: Fund 410
CM Tanner asked where this watershed was located. Flaherty noted that is a better question
for the City Engineer but generally described the area east of TH 101 and south of CSAH 38.
Capital Improvement Fund: Fund 414
No comments.
City Buildings & Property Maintenance: Fund 439
No comments.
Fire Capital Revolving Fund: Fund 447
CM Dunlap asked about the apparatus in the Capital Improvement Plan. Flaherty noted this
schedule shows full reserve funding of department equipment but noted the Council will need
to have more discussion before the 2027 levy. Flaherty explained there can be hybrid financing
with reserve funds and equipment certificates. Flaherty discussed equipment certificates in
more detail. CM Lund asked if other equipment is funded in that way. Flaherty explained that
currently they are reserve funded, however, the department equipment is more expensive and
warrants discussion of options.
MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING SEPTEMBER 8, 2025
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Preliminary Property Tax Levy:
Flaherty reviewed the five levy scenarios included in the packet and provided additional
supporting materials on how to achieve each scenario.
The City Council had lengthy discussion on each of the scenarios, discussing the balance of using
reserve funds to offset the levy impact and whether that was the best approach. After
discussion, the majority of the City Council was in favor of using some reserve funds when
adopting the preliminary levy and wanted to further explore using other reserve funds before
the final levy is adopted.
Flaherty recapped the discussion and noted that for the preliminary levy, use of reserve funds
for the General Fund balance policy transfer amount, and amounts from lawful gambling will be
accounted for.
CM Lund at 6:49 PM motioned to continue this special meeting following the 7 PM regular
meeting, seconded by CM Tanner. All in favor. Motion carried 5-0.
Mayor Stockamp motioned to reopen this special meeting at 7:30 PM, seconded by CM
Goede. All in favor. Motion carried 5-0.
2. 2026 Fire Protection Agreement – City of Albertville.
Flaherty reviewed the packet material.
City Attorney Kendall said he has reviewed the contract and has had conversations with City
staff on the amended language. CM Lund asked about not hiring Albertville Fire Department
members. Flaherty noted that recruitment process will incorporate due diligence to avoid this.
CM Dunlap noted the agreement has no language for service in 2027. Flaherty noted that is
correct and that staff can continue discussions with Albertville if the City Council provides that
direction in the future.
CM Tanner motioned to approve the 2026 Albertville Fire Contract, seconded by CM Dunlap.
All in favor. Motion carried 5-0.
3. Fire & Emergency Services Department – Transition Planning.
City Administrator/Finance Director Flaherty reviewed the packet material.
The Council discussed different options for the transition of the Fire & Emergency Services
Department. Flaherty said staff would recommend an interim contracted position until the
position is filled. Flaherty said staff has meet with Michael Scott formerly of Eagan, Shakopee
and St. Louis Park and recommend hiring him for Professional Services to the City at an hourly
rate.
The Council would like to meet Michael Scott and have a proposed agreement before moving
forward. Flaherty will check with Mr. Scott’s availability to meet on September 15th and
MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING SEPTEMBER 8, 2025
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prepare a brief presentation for Council. Flaherty said staff have also obtained a proposal from
Citygate Associates who would complement the interim services which will be discussed more
at the next meeting.
4. Adjourn.
CM Goede motioned to adjourn at 8:25 PM, seconded by CM Tanner. All in favor. Motion
carried 5-0.
Minutes prepared by City Clerk, Audra Etzel.
City of Otsego:
_________________________________
Jessica Stockamp, Mayor
ATTEST: ___________________________
Audra Etzel, City Clerk