2026.08.10 Special City Council Meeting MinutesSPECIAL OTSEGO CITY COUNCIL MEETING
MONDAY, AUGUST 10, 2026
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, City Planner Dan
Licht, and City Clerk Audra Etzel.
1. 2027 Budget Review —Special Revenue Funds, Debt Service Funds & Fund Balance Policy
Transfer:
City Administrator/Finance Director Flaherty presented the budget meeting materials as
included in the packet.
Flaherty reviewed the eight special revenue funds and noted that only the three tax increment
district funds have adopted line -item budgets.
The Council discussed the 10% Lawful gambling funds and agreed to continue to allocate a
portion towards the law enforcement contract with Wright County.
The Council asked about using the Tax Increment District 1— Great River Center funds towards
the street improvements. Flaherty will research what portion could potentially be used.
Mayor Stockamp asked about the Tax Increment District 4 — Riverbend North project
completion. Flaherty noted that Phase 2 was not completed within the time requirements of
the TIF Agreement and that staff have not issued the additional TIF Note for Phase 2.
Flaherty reviewed the three debt service funds: Series 2018A, Series 2020A, and Series 2024A.
CM Dunlap asked if it would be beneficial to refinance the 2018A bond. Flaherty said staff can
further evaluate but noted with the small principal balance outstanding that it may be a better
option to pay it off early rather than refunding the bond.
CM Dunlap asked about the Fund 303 — EDA Lease Revenue Bond, Series 2024A payments.
Flaherty said two payments are made annually in February and August; 2026 payments were
interest only and 2027 will include interest and principal.
CM Dunlap asked about the US Bank Trustee funds. Flaherty said those funds are restricted by
the bond issuance documents. Flaherty reviewed the current funds available and expected
project costs remaining, noting that if there are construction funds remaining, they can be used
to reduce future tax levies to repay the debt service, but cannot be used for other City projects.
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MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING AUGUST 10, 2026
CM Lund asked about the soil on site at the Fire Station. Flaherty reviewed the proposals
received for removal and noted that staff rejected them due to the cost. Flaherty said staff are
aware of a pending project that may be short on soil, and staff will look at adjusting the soil
removal timeline. The Council discussed different options for the excess soil and the timing to
expense the project before closing the project account. Flaherty noted the funds can be used
through 2027.
Flaherty reviewed the fund balance transfer calculation that is based on the 2025 ending fund
balance compared to the 2026 budget. Flaherty presented a few items for the City Council to
consider which the City Council discussed at length.
CM Dunlap asked about using the Building Permit revenue for the Fire Marshal position and the
formula used. Flaherty will review the Fire Marshal funding option for future consideration
from transferred funds.
The Council considered budgeting an election amount every year to offset the high increases in
an election year.
Flaherty noted the budget meeting tomorrow will include the General Fund, and that the
meeting on August 24 will review Capital Project funds.
Flaherty said the City Council will need to adopt a preliminary levy before September 301n and
noted the last City Council meeting before that date is September 28tn
2. Adjourn.
CM Dunlap motioned to adjourn at 6:46 PM, seconded by CM Tanner. All in favor. Motion
carried 5-0.
Minutes prepared by City Clerk, Audra Etzel.
City of Otsego:
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Audra�VAc4q to Clerk
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Jes ca Stockamp, Mayor
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