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River Heights audit shows $480,000 surplus, no major compliance issues
Summary
The city auditor told the River Heights City Council the fiscal year ended June 30, 2025 with roughly $9.1 million in assets, no material compliance deficiencies and about $480,000 added to surplus; council and staff discussed reserves and capital priorities.
River Heights’ independent auditor told the City Council on Jan. 6 that the city ended the fiscal year on June 30, 2025 with strong financials and no material compliance deficiencies.
Matt Regan, the city’s auditor, summarized the annual audit presentation and said the financial statements “present fairly in all material respects.” He told the council the city’s total assets were about $9,100,000, liabilities were roughly $147,000, and combined funds added about $480,000 to surplus during the year. “Everything looked great,” Regan said.
Regan reviewed the audit process and state reporting obligations, noting the state auditor’s transparency requirements and the city’s responsibility to file multiple financial reports. He described the audit work as gathering evidence and comparing it with internal records to confirm accuracy and compliance.
Council members asked about the city’s ability to finance upcoming capital needs. Regan said the city has “about $2,000,000” across general, capital and enterprise funds, and that the current position — approximately one year’s worth of expenditures in reserve — is generally sound but could be consumed quickly by major water, sewer or road projects.
Mayor Blake Wright said the council has intentionally kept reserves for enterprise funds: “we would try and keep in reserve 1,500,000.0 between the water and sewer enterprise funds.” Wright and others noted the rationale is to avoid emergency borrowing if infrastructure fails; he cited a past incident when a failed well cost the city roughly $750,000.
Regan said the audit did not identify internal-control deficiencies significant enough to report and that annual compliance testing found the city complied in all material respects with state requirements for the year ended June 30, 2025. He also confirmed the audit, associated reports and supporting disclosures have been uploaded to state systems and are public record.
Next steps: council and staff will use the audit information as they consider capital projects and budget planning in the coming months; Regan offered to provide copies of his PowerPoint presentation and the audit packet to council members.
Sources: presentation and discussion with Matt Regan at the Jan. 6 City Council meeting.
