Otsego council adopts 2025 operating budgets, final levy and 10-year CIP; one vote against

The City of Otsego on Dec. 9 adopted a package of budget measures for 2025, including a set of operating budgets, a final property tax levy and a 10‑year capital improvement plan (CIP).

City Administrator Adam summarized the package, noting that the council previously adopted a preliminary levy of $9,733,646 and that the proposed final levy under consideration is $9,392,870 for taxes payable in 2025 (the staff presentation described a 4.5% increase for the final levy figure relative to baseline). The operating budgets cover the general fund, the three public utility funds (water, sanitary sewer, stormwater), special revenue funds including three tax increment districts, and debt service funds. The EDA submitted a budget request that was included as a section of the package.

Council moved to adopt the operating budgets (Resolution 2024‑87). During discussion Council Member Ryan Dunlap acknowledged several cost‑saving efforts identified by staff but said he could not support the overall package because growth in spending exceeded an estimated growth rate. "Ultimately, I cannot approve this budget tonight because it is too much," Dunlap said.

Council then adopted the final property tax levy (Resolution 2024‑88) and the capital improvement plan for 2025–2034 (Resolution 2024‑89). The motions to adopt the operating budgets and the levy were approved by recorded tally of 4–1; the CIP motion was recorded as passing in the meeting minutes.

Next steps: staff will implement the approved budgets, proceed with capital project planning consistent with the CIP, and execute tax‑collection arrangements for the levy payable in 2025.