2026.08.24 Special City Council Meeting MinutesSPECIAL OTSEGO CITY COUNCIL MEETING
MONDAY, AUGUST 241 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. Budget Review Draft 2027 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.
A. General Fund Revenues
Flaherty reviewed the draft revenue budget as included in the packet. He highlighted the
change in presentation of certain licenses and permits due to the new permit software. He
highlighted this is the last remaining year of allocating public safety aid funds received in 2023,
e highlighted the engineering revi Hew fees which are still under consideration. Flaherty noted
that revenue budgets will continually be evaluated throughout the remainder of the budget
process.
CM Dunlap asked about the tax court settlement mentioned by the Assessor's office at a
pI evious meeting. Flaherty said a settlement had been reached and that additional details will
be available soon from Wright County. Flaherty noted any impact to the City is typically netted
with future tax distributions from the County and could cause the delinquent line item to be
negative because of this.
CM Lund asked about the Fire Aid formula. Flaherty said the 2027 revenue budget is for
training reimbursement and per firefighter aids. The amount will increase in 2028 as the
contract partners retain the Otsego Fire Aid in 2027.
B. Capital Proiect Funds
Flaherty said the City maintains fourteen Capital Project Funds but the discussion tonight will
focus on those with a proposed tax levy for 2027. Flaherty noted a future budget meeting will
provide a complete review of the Capital Improvement Plan. Flaherty reviewed the cash flow
summaries for the funds as included in the packet.
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MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING AUGUST 24, 2026
CM Lund asked about inflation being included for Pavement Management. Flaherty noted the
cost estimates are based on current and previous year projects and that inflation is applied
throughout the forecasted years.
CM Dunlap asked if the projects for Trail Management are contracted. Flaherty confirmed that
is correct.
CM Dunlap asked about future year levies in Parl< Equipment not increasing after 2028. Flaherty
noted that projects are typically every other year and discussed the lifecycles of the parks will
spread the projects out even more in the future.
CM Dunlap asked for clarification on Capital Equipment Revolving vehicle discussed at Public
Works Subcommittee. Flaherty clarified that staff opted to not pursue purchase in 2026 and
noted where it was included on the cash flow forecast in 2027.
CM Lund asked what types of projects were included in the Building &Property Maintenance
fund. Flaherty outlined the nature of the projects, noting mostly small easily identifiable
improvements but many of the major systems like roofs, hvac, etc are not included. Flaherty
noted this is another task supporting the requested facilities maintenance position.
CM Dunlap asked for clarification on turnout gear being in both the operating and capital
budgets. Flaherty confirmed it is included in both budgets, with the operating portion being for
any staff additions or turnover, with the capital portion for the full replacement based on
lifecycle of the gear. CM Tanner asked what kind of useful lives were used for the calculations.
Flaherty provided examples of useful lives for equipment and vehicles, mostly ranging from 10
to 25 years.
C. Preliminary Property Tax Levy:
Flaherty reviewed the three levy scenarios included in the packet Cl"d recommends the purple
(Draft C) option.
The City Council discussed the scenarios presented with the primary focus on review of the
debt service levy reduction for the Fire Station. The City Council discussed maintaining the
appropriate funds available to remove the soil from the fire station parcel if necessary.
D. Follow -Up Items
Flaherty reviewed the follow-up items from the previous meeting including:
Legal Service Budgets: Flaherty reviewed legal service budgets from nine surrounding
communities. Flaherty noted these were obtained from staff in those cities and that they are
draft budgets. After review and discussion, the City Council asked for no additional information.
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MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING
AUGUST 24, 2026
Net Department Budgets: Flaherty reviewed a schedule outlining department budgets net of
interfund transfers from the Utility funds. The City Council had no additional questions.
Fund Balance Transfer: Flaherty reviewed a revised calculation based on previous budget
meeting feedback. The City Council discussed it in length. CM Dunlap asked for an additional
scenario maintaining 45% of fund balance compared to the draft 2027 budget for the next
meetingI
Engineering Budget: Flaherty presented a calculation comparing the proposed engineering
budget to the current year. The City Council discussed at length the ability for development
reimbursements to bridge this difference so that tax levies are not subsidizing new
development. Flaherty will budget these reimbursements accordingly and include in a future
meeting for review.
Flaherty said the preliminary levy will need to be adopted at the City Council meeting on
September 28, The City Council agreed they would like to review the changes before adopting.
Flaherty is requesting a Special City Council meeting on September 14th to continue budget
discussions. Flaherty also noted staff will include an agenda item for a closed session to discuss
project easement costs.
Mayor Stockamp motioned to schedule a Special City Council meeting for September 14,
2026, at 5@30 PM as discussed, seconded by CM Tanner. All in favor. Motion carried 5-0.
The City Council requested Flaherty to include future facility project estimates at the next
meeting. Flaherty noted he can show a few examples of how that would look but noted they
will obviously increase the levy.
2. Adjourn.
CM Dunlap motioned to adjourn at 6:55 PM, seconded by CM Goede. All in favor. Motion
carried 5-0.
Minutes prepared by City Clerk, Audra Etzel.
City of Otsego:
Audra Etzel, City Clerk
J
ica Stockamp, Mayor
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