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Otsego council adopts 2026 fee schedule, operating budgets, pay plans and property tax levy

December 09, 2025 | City of Otsego , Wright County, Minnesota


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Otsego council adopts 2026 fee schedule, operating budgets, pay plans and property tax levy
The Otsego City Council adopted a package of fiscal and fee actions for 2026 after staff presentations and a public hearing.

City Administrator Adam Flaherty presented the proposed 2026 fee schedule and explained specific changes: plan‑review fees for deck permits would increase from 10% to 25% of the total permit fee, water‑meter and utility charges were adjusted to reflect vendor price increases, park shelter reservation language was clarified, and the candidate filing fee would rise from $5 to $25. Flaherty told the council the fee updates reflect annual evaluations and statutory limits on imposing development‑related fees.

A public hearing on the fee schedule included comments from residents who opposed raising the candidate filing fee and asked for better, more navigable public information about capital projects. The council adopted Ordinance 2025‑12 establishing the 2026 fee schedule and approved publication in summary form (motion passed by voice vote).

On the budget, staff presented the city’s general, utility, debt service and special‑revenue fund recommendations, and reviewed the capital improvement plan (CIP) for 2026–2035. Flaherty and staff said many large drinking‑water projects are planned across multiple years and rely on mixed financing, including grant dollars and state SRF programs; staff cited $4,900,000 in secured federal funding for two drinking‑water projects and roughly $4,000,000 anticipated from state PFA SRF programs across identified projects.

Council adopted Resolution 2565 adopting the 2026 annual operating budgets (motion by Corey; passed 4–1), set the final property tax levy (motion passed 4–1), and adopted the 2026–2035 Capital Improvement Plan. Council also approved the proposed 2026 pay plans (cost‑of‑living adjustments plus step increases) after debate about whether the COLA should mirror federal figures.

Residents who spoke during open forum continued to press for transparency about how much of the multi‑year CIP will be paid by residents versus grants and requested additional public engagement before the city commits to large projects. Staff clarified that items on the CIP are planning documents that require separate council approvals when funding and contracts are finalized.

Sources: City Administrator Adam Flaherty presentation; council motions and votes recorded during the meeting; public comments from the open forum.

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