07-08-2025 (Workshop - 2024 Audit)HUTCHINSON CITY COUNCIL
REVIEW OF 2024 FINANCIAL REPORT WORKSHOP
MINUTES
TUESDAY, JULY 8, 2025, AT 4:30 PM
CITY CENTER — COUNCIL CHAMBERS
1. Call to Order
Mayor Forcier called the workshop to order at 4:30 p.m. Members present included Dave
Sebesta, Pat May, Tim Burley and Chad Czmowski. Others present were Matt Jaunich, City
Administrator, Andy Reid, Finance Director, and Justin Juergensen, Assistant Finance Director.
REVIEW OF 2024 FINANCIAL REPORT
2. 2024 Financial Report
Justin Juergensen, Assistant Finance Director, introduced Abby Schmidt of Abdo (City's auditing
firm) to the Council who presented the City's 2024 audited financial report.
Ms. Schmidt provided an overview of the audit results, general fund results, other governmental
funds, enterprise funds and key performance indicators. An unmodified, or clean, opinion has
been issued by Abdo meaning there were no instances of noncompliance.
Ms. Schmidt reviewed general fund fund balances. Items reviewed were unrestricted fund
balance, budget, fund balance policy and committed for contingencies and tax levy stabilization.
at 40%. The unrestricted fund balance was at 54.7% for 2024. Ms. Schmidt reviewed general
fund budget amounts to actual amounts and the variance with the final budget. Ms. Schmidt also
reviewed the general fund revenues by type, general fund expenditures by type, special revenue
fund balances, capital projects fund balances, debt service funds, and debt service. Ms. Schmidt
then reviewed the enterprise funds and reviewed the cash flows from operations and cash
balances in the water fund, sewer fund, refuse fund, composting fund, public utilities commission
fund, storm water fund, and the liquor fund. Ms. Schmidt noted that gross profits for the liquor
fund increased from 2023. Ms. Schmidt reviewed comparisons of key performance indicators
with other class three cities and other cities in McLeod County related to tax rates, taxes per
capita, long term debt per capita, debt service expenditures as a percentage of current
expenditures, and current expenditures per capita. Overall the report shows that the City is
fiscally healthy.
Andy Reid, Finance Director, noted that expenditures are increasing in the refuse fund which is
why the rates are being increased, as well as additional expenditures are occurring in the
stormwater fund.
Discussion was held on the hard -good pickup which is increasing in cost every year to the City.
More discussion will be held on this topic at the Council workshop held at a later date on the
enterprise funds. Other discussion was held on revenues/expenditures on the facilities included
within the parks and recreation department and whether or not enough is being charged for the
services/facilities.
3. Adjournment
Motion by Czmowski, second by May, to adjourn the workshop at 5:05 p.m. Motion carried
unanimously.
ATTEST:
Gary T. Forcier Matthew Jaunich
Mayor City Administrator