Auditor presents 2024 financial summary to Cottage Grove trustees; general fund reserves within policy, utilities show improved reserves

Cottage Grove, Wis. — Auditors from Baker Tilly (presented by Amanda Blomberg) delivered the Village of Cottage Grove's 2024 audited financial statements at the May 19 board meeting, reporting a $429,000 increase in the general fund balance for the year and noting that the village's unassigned fund balance sits within its 20–30% policy goal.

Amanda Blomberg summarized key metrics from the audit results and the financial statements, telling trustees the general fund's net income for 2024 was about $429,000 and that most of the increase flowed to the village's unassigned reserves. She explained that the village's unassigned plus assigned fund balance compared with budgeted expenditures produced a ratio of about 28%, inside the board's 20–30% target range.

The auditors also reviewed the village's general obligation (G.O.) debt, reporting that the village's outstanding G.O. debt represented roughly 47% of its statutory debt limit at the end of 2024 — a level the auditor described as sound. The audit noted that a substantial portion of the village's debt burden is tied to active tax increment financing (TIF) districts, where the TIF projects, not the general levy, primarily support debt service.

Amanda discussed utility results: the water utility achieved an operating return and held about $1.8 million in unrestricted reserves at year-end (roughly 11 months of operating revenue), enabling the utility to cash-fund approximately $600,000 of water plant work instead of issuing debt. The sewer utility had roughly $3.0 million in cash on hand (about 13 months of operating revenue) after a rate increase went into effect Jan. 1, 2025.

Trustees asked clarifying questions about trends in fund balance, whether the Amazon permit revenue distorted 2024 results (staff clarified that 2024 permit activity increased both revenues and expenditures and that 2025 budgeted expenditures are lower), and about debt service ratios. Finance staff and the auditor noted that the village meets its fund-balance target and that many debt-service payments are TIF-related, which lowers the levy's net debt burden.

The auditor also discussed internal controls, upcoming reporting standard changes and an audit results letter that included suggested minor recommendations for staff. Trustees thanked village staff for assembling records and cooperating with the audit.

The board accepted the presentation and agreed staff would follow up as needed on audit recommendations during the budget and capital planning process.