Item 3.2.B. 2026.10.26 Special City Council MinutesPage 1 of 2
SPECIAL OTSEGO CITY COUNCIL MEETING
MONDAY, OCTOBER 26, 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, Utility Manager
Kurt Neidermeier, and City Clerk Audra Etzel. City Engineer Ron Wagner arrived at 5:39 PM.
1.2027 Budget Review:
City Administrator/Finance Director Flaherty outlined the Budget Meeting #5 materials that
were included in the packet.
Utility Operations Overview
Utility Manager Neidermeier reviewed the 2027 Utility Budget Narrative and presented a
power point.
The City Council discussed the improvement of water quality with the new treatment process,
benefits of employee retention, planning purchases in advance to avoid delays, Water Tower 3
reconditioning, improved communications, getting to trouble spots in advance of users calling,
and the call volume regarding quality has decreased. Neidermeier said staff has started
tracking the calls to better quantify and qualify.
A. Water Utility Fund.
Flaherty and Neidermeier reviewed the packet materials. The water utility rate study
recommends a 10% rate increase for 2027 which has been factored into the budget.
Flaherty reviewed the Water Access Charge (WAC) fund noting the new debt issuance has been
included.
The City Council discussed grants, tower lease agreements, chemicals and the processes using
new chemicals, contracted services for maintenance, and repair costs.
Flaherty noted the CIP projects for 2027 to 2036, will be reviewed November 23rd at the Special
meeting.
The City Council concurred as presented.
B. Sanitary Sewer Utility Fund.
Item 3.2.B.
MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING OCTOBER 26, 2026
Page 2 of 2
Flaherty reviewed the packet materials. The utility rate study proposes a 2% increase to the
rates, effective March 2027.
The City Council discussed the REC calculation, existing sewer debt, Sewer Access Charge (SAC)
predictions, mill and overlay process and life of equipment, limitations on biosolid material
storage, cost to store and dispose of biosolid material, and marketing biosolid materials.
Flaherty noted the Sewer Access Charge (SAC) fund and the CIP projected projects for 2027 to
2036, this will be discussed at the November 23rd Special Meeting.
The City Council concurred as presented.
C. Storm Water Utility Fund.
Flaherty reviewed the packet materials. Flaherty noted that storm water rates for 2027 are
pending inflationary indexes and would be included in the fee schedule for adoption.
City Engineer Wagner said the last storm water rate study was around 2013. Flaherty said staff
would propose rate studies be completed with the other utility funds in 2028.
The City Council concurred as presented.
Utility Rates
Flaherty reviewed the packet materials noting that the rate increases were discussed with each
respective fund earlier in the meeting.
Flaherty said the next budget meeting is scheduled for November 23, 2026, at 5:30 PM and the
Truth-in-Taxation meeting is scheduled for November 30, 2026, at 6:00 PM.
2. Adjourn.
CM Goede motioned to adjourn at 6:50 PM, seconded by CM Lund. 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