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Item 3.2.B. 2025.11.10 Special City Council MinutesPage 1 of 3 SPECIAL OTSEGO CITY COUNCIL MEETING WEDNESDAY, NOVEMBER 10, 2025 5:30 PM OTSEGO PRAIRIE CENTER Call to Order: Mayor Stockamp called the meeting to order at 5:30 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, Assistant City Administrator/Human Resources Sabrina Hille, City Planner Dan Licht, and City Clerk Audra Etzel. 1.2026 Budget, Tax Levy and Capital Improvement Plan Review. City Administrator/Finance Director Flaherty outlined the Budget Meeting #5 items that were included in the packet. General Fund Budget Flaherty reviewed the packet material. Mayor Stockamp asked about advertising in the newsletter. Flaherty said the newsletter will be smaller and not include advertising at this time; the newsletter and layout will be relatively the same. CM Goede asked how many staff were not included in benefits within the August preliminary numbers. Hille thought the difference was three employees. CM Lund asked if the benefit enrollment adjustment includes the new expense for paid leave starting in January. Flaherty said the increase is just for employee health benefits. Flaherty is working with Albertville on getting a better budget cost estimate for the compost site cost sharing calculation and will provide an update when known. The proposed revenue budget totals $10,850,321, an increase of 9.16% compared to the current year. The proposed expenditure budget totals $11,019,558 and increase of 10.86% compared to the current year. The proposed budget is an un-balanced budget in the amount of $169,237. During the 2026 budget review process the City Council has determined that the $169,237 fund balance is more than City policy guidelines and will offset the budget and tax levy within the General Fund rather than be transferred to a capital reserve fund. Flaherty noted the compost site cost and COLA will be discussed at the next Special Budget Meeting. Mayor Stockamp asked about the compost site closing for the winter season and the raw material. CM Dunlap also noted the site will not need to be maintain ed. Flaherty said staff are working with Albertville to figure out a location for Christmas tree disposal. Item 3.2.B. MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING NOVEMBER 10, 2025 Page 2 of 3 CM Tanner asked about a compensation study. Hille said the last study was done in 2023 and is typically done every 3 to 5 years. 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. CM Dunlap asked about the pavement management project. Flaherty reviewed a map of the proposed 2026 pavement management projects outlining one renewal project in an industrial park that may include an assessment. CM Dunlap asked about a Phase 2 of the Prairie Park Renovations. Flaherty said staff has opted to not include Phase 2 until a time when Phase 1 is further along and noted there have been staff discussions whether to complete Phase 2 in a lump sum project or in smaller phased projects over time. CM Lund and CM Tanner said the Park Commission would look for more direction from the City Council on Phase 1 implementation. CM Dunlap noted there are no other parks scheduled. Flaherty said any park redevelopment would be in Fund 205 . CM Dunlap asked about the budget for the CR137 project. Flaherty said the cost with water, roads, and trails is about $730,000, less than budgeted in prior year capital improvement plans. Property Tax Levy Flaherty reviewed the packet material. The Preliminary Property Tax Levy for Taxes Payable in 2026 is in the amount of $11,206,138. Flaherty noted the levy has been reduced by $100,613 since preliminary adoption and reviewed the changes in the levy. Next Meetings Flaherty said the next budget meeting is scheduled for November 24, 2025, to discuss the tax levy and the proposed COLA, the Truth-In-Taxation meeting is scheduled for December 2, 2025, at 6pm, and the final budgets and property tax levy should be adopted by the City Council on December 8, 2025. CM Lund asked about home valuation information. CM Goede asked if many residents have been using the website to calculate their taxes. Hille was not sure if staff is able to track the actual quantity of residents using the calculator. Flaherty showed the website and how t he property tax is calculated. Mayor Stockamp asked if there are additional funds that could be used to reduce the 2026 budget. Flaherty showed calculations how onetime funds would impact future years. CM Lund asked if there are items that can be delayed or will not happen again. Flaherty reviewed the capital levies showing funds that will increase and decrease through different years. CM Dunlap noted there is an increase of almost 2% for the following year due to the unbalanced budget and use of other funds. Mayor Stockamp asked about using the revolving loan funds MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING NOVEMBER 10, 2025 Page 3 of 3 and would like to have a discussion about the purpose of the funds ; the Council will review for future uses. CM Dunlap asked about the letters that will need to be to Otsego residents covered within the Albertville Fire Contract service area. Flaherty said about 4,704 letters would need to be sent, adding this may be able to be included in a future City Newsletter. Flaherty said this notice would be determined by the direction the Council takes for the operation al plan. 2. Adjourn. CM Goede motioned to adjourn at 6:48 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