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HomeMy WebLinkAbout07-14-26 (Worlshop - 2025 Financial Audit Review)HUTCHINSON CITY COUNCIL REVIEW OF 2025 FINANCIAL REPORT WORKSHOP MINUTES TUESDAY, JULY 14, 2026, 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 2025 FINANCIAL REPORT 2. 2025 Financial Report Justin Juergensen, Assistant Finance Director, introduced Abby Schmidt of Abdo (City's auditing firm) to the Council who presented the City's 2025 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 opinion, or clean opinion, has been issued by Abdo with one instance of noncompliance. This instance was related to a responsible contractor bidding requirement. Ms. Schmidt reviewed general fund balances. Items reviewed were unrestricted fund balance, budget, fund balance policy and committed for contingencies and tax levy stabilization. at 50%. The unrestricted fund balance was at 54.5% for 2025. 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 2025 and cash has increased significantly since 2023. Ms. Schmidt reviewed comparisons of key performance indicators with other class three cities, other cities in McLeod County and other comparable cities related to tax rates, debt per capita, and current expenditures per capita. Overall, the report shows that the City is fiscally healthy. It was noted that in the Water/Sewer fund — when the sales tax drops off, the debt will fall off as well. Council Member Burley commented on the fire ladder truck and potential City Center remodel debt the City is considering. Ms. Schmidt noted that the City just needs to remain mindful and continue with thoughtful planning of this additional debt on top of regular debt. 3. Adjournment Motion by May, second by Czmowski, to adjourn the workshop at 4:55 p.m. Motion carried unanimously.