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2026.08.11 Special City Council Meeting MinutesSPECIAL OTSEGO CITY COUNCIL MEETING TUESDAY, AUGUST 11, 2026 8:00 AM OTSEGO PRAIRIE CENTER Call to Order: Mayor Stockamp called the meeting to order at 8:00 AM. 17.119011 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 Clerk Audra Etzel, IT Manager Ben Boyd, Fire Chief Jim McCoy, and Parks and Recreation Director Nick Jacobs. 1. Budget Review — Draft of the 2027 General Fund Budget. Flaherty reviewed the budget meeting materials included in the packet. Hille outlined the assumptions for the personnel service budgets including cost of living adjustments, step increases where applicable, health and dental insurance premium increases, and health saving account contribution adjustments due to the increased deductibles on the insurance plans. Administration & Elections Etzel reviewed a brief presentation outlining her department operations. Flaherty reviewed the budget details for each of the two departments. Etzel noted that a special election is being planned for 2027 dependent on the results of the Governor race this fall. Etzel highlighted the addition of a request for election software that will aid in scheduling of precincts, track payroll related documents, and hours worked for the 100+ election judges. Information Technology Boyd reviewed a brief presentation outlining his department operations. Flaherty reviewed the budget details for this department noting most of the increase was from a full year budget compared to a partial year budget in 2026 for the IT Support Specialist position. Boyd highlighted increasing subscription costs for software used by City. Boyd discussed IT system security with the recent news about water system threats. Boyd outlined additional software packages that would be ideal in the future but are not included in the current budget. Public Safety McCoy reviewed a brief presentation outlining his department operations. Flaherty reviewed the budget details for each of the five departments. Flaherty outlined the proposed increase for the law enforcement contract with Wright County and reviewed the use of lawful gambling funds to offset this cost, with the City Council concurring with the amount of funds to be used proposed by staff. Page 1 of 4 MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING AUGUST 11, 2026 CM Dunlap motioned that the City Council finds Councilmember Goede has a potential conflict of interest with respect to this agenda item and to protect the integrity of the City Council's proceedings, preserve the validity of an action taken, and safeguard the public trust, CM Dunlap further moves that the Councilmember be requested to refrain from participating in discussion and voting on this matter, and that the minutes reflect the nature of the conflict and the member's non -participation. The motion failed due to lack of a second. Flaherty reviewed the personal services line items in detail and discussed specifically what positions were included, over -time assumptions, part-time assumptions, the calculation of the contracted fire marshal position, and the respective benefits. McCoy reviewed the supplies, services, and other charges line items in detail. CM Dunlap noted the variances in costs from the fire department presentation in April 2025. Flaherty outlined that the City has refined assumptions since that time by having approved job descriptions and approved pay rates. Flaherty also noted that the presentation in April 2025 did not include the Fire Marshal position and also didn't include the partial year contract with Elk River. CM Dunlap expressed that the City Council should schedule a future meeting to review fire department operations. Flaherty advised that the City Council should send topics to City staff to prepare for such a meeting. The City Council also discussed acquiring additional property for a future fire station on the west side of the City. The City Council took a recess from the meeting at 10:49 AM and returned at 11:01 AM. Public Works Jacobs reviewed a brief presentation outlining his department operations. Flaherty reviewed the budget details for each of the six departments. Flaherty highlighted the requested position for Facilities Maintenance noting that the City does not have any staff currently dedicated to maintaining the facilities and that it is currently department specific employees tasked with that work and noted that is not their primary role so it's difficult to prioritize. The City Council discussed separating the personnel budget for the staff position into its own department rather than as presented in the draft budget. Flaherty noted that will be incorporated into a future draft of the budget. The City Council briefly discussed the space needs of the facilities and that planning efforts and financial planning should be initiated soon for future projects. Flaherty highlighted the staffing changes in the Engineering Department noting the succession contract with Hakanson Anderson for a part-time dedicated City Engineer with a partial year budgeted for the long-term employee hire. The City Council discussed at length the increase in costs and asked for more data on cost allocations of these positions and how development - related activity can offset these costs. Flaherty noted he can provide an additional schedule showing the cost allocations to each department in the General fund at a future meeting. Page 2 of 4 MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING AUGUST 11, 2026 Parks and Recreation Jacobs reviewed a brief presentation outlining his department operations. Flaherty reviewed the budget details for each of the four departments. Flaherty discussed the wage allocation change for the Parks and Recreation Director to be 100% in Park Maintenance for 2027, compared to 75% in Park Maintenance and 25% in Recreation for the 2026 budget. Jacobs outlined the requested addition of a software package for work orders and asset management that is currently used by the Utilities Department with good feedback. Jacobs highlighted the additional budget for Recreation contracted services, which is for Senior Trips in collaboration with the City of Rogers. Flaherty noted that the revenue for Recreation Programs increased in alignment with the additional costs and that staff is tracking this new program closely to ensure it is breaking even. The City Council discussed at length the programs offered by the City to different community age groups. The City Council took a recess from the meeting at 12:40 PM and returned at 12:45 PM. CM Goede needed to leave the meeting for work and did not return. uman Resources. Communications. and Building Sa Hille reviewed a brief presentation outlining her department operations. Flaherty reviewed the budget details for each of the three departments. Flaherty noted most of the increase was from a full year budget compared to a partial year budget in 2026 for the HR/Payroll Coordinator position. Hille outlined the Classification and Compensation Study and that the City has revised or added 13 positions since the last study was completed. The City Council discussed setting aside funds each year in an operational reserve account to not have the big budget swing every few years. Flaherty agreed and related this to past discussions on election budgets and will bring a proposed recommendation for consideration at a future budget meeting. Hille reviewed the budget impacts of ADA compliance for the City website noting the software tools proposed that will meet the requirements. The City Council had discussion on how Laserfiche documents will be addressed with the software and Hille clarified that staff will confirm this with the vendor. Hille reviewed the contracted service increases to reflect the feedback from the City Council goal setting sessions. Hille outlined that the budget could come in the form of contracted services or even part-time or internship type positions based on what would best fit City operations and needs. Flaherty highlighted the staffing change in the Building Safety Department proposed including hiring a Building Official position and the respective decrease in contracted services. Hille referenced the Staffing Plan document distributed at the meeting that showed the proposed organizational chart changes. Page 3 of 4 MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING AUGUST 11, 2026 City Administrator, Finance, and Other Departments Flaherty reviewed a brief presentation outlining his department operations. Flaherty reviewed the budget details for each of the eleven departments. Flaherty highlighted the requested position in the Finance department and outlined the justification for the position. CM Dunlap asked for comparison of legal expenses budgeted compared to surrounding cities. Flaherty noted he can assemble that information for review at a future budget meeting. Due to time constraints, the City Council concurred to review the Revenue budget at a future meeting. Flaherty noted that can be added to the agenda for the August 24 special budget meeting. CM Tanner motioned to adjourn at 2:36 PM, seconded by CM Lund. All in favor. Motion carried 4-0. Minutes prepared by City Administrator, Adam Flaherty. City of Otsego: ATTEST. s' r� Audra Etzel, City Clerk ' oT •, �\%of 1 / Page 4 of 4