City auditor issues unmodified opinion on St. Paul Park 2024 finances; highlights strong reserves

A representative of Smith Schafer told the City of St. Paul Park City Council on July 21 that the firm issued an "unmodified opinion" on the city's 2024 financial statements and found no legal compliance exceptions in its audit procedures. The auditor said property taxes were the largest revenue source in 2024, rising about 7% year over year and representing roughly 53% of total revenues (excluding transfers and bond proceeds). Local Government Aid (LGA) rose substantially and accounted for roughly 15% of overall revenues, the auditor said. The auditor summarized major expenditures and balances: general government spending (excluding capital and debt) was about $1,471,000 in 2024 (a 5% increase), public safety was the largest departmental expenditure at just under $1,900,000 (about 47% of expenditures, up 8%), highways and streets totaled about $1,084,000 (a 14% increase), and parks and recreation spent about $304,000 (a 9% increase). The auditor noted large engineering and repair costs tied to the Third Street improvement project and other maintenance work. The auditor also said the assigned and unassigned general fund balance stood at nearly $2.8 million at year-end, the equivalent of about 80% of 2024 expenditures, above the State Auditor27s typical guidance of 35% to 50%. Regarding city debt, the auditor reported total bonds and notes payable of $4,534,000 and that debt service payments are being made timely. On the enterprise side, the auditor reported small operating losses in both the water and sewer utility funds before transfers and capital contributions and noted those funds are generally supported by user rates. The auditor said net position balances remain positive but cautioned the council to monitor operating losses and consider future rate adjustments if losses continue. The auditor added that a new accounting standard effective in 2024 was implemented for the city and that the change did not materially affect the presentation because the city had already been accounting consistently with the new guidance. The presentation was described as a draft of the financial statements; the auditor said a few remaining items were being finalized by city staff and the city27s consultant. Council members at the meeting asked follow-up questions about internal controls and capital asset tracking. The auditor said no deficiencies or material weaknesses were noted this year and that capital assets were accounted for based on the information provided. The presentation was informational; no formal council action on the audit was recorded during the meeting.