Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Audit Financial topic
No spam. Unsubscribe anytime.
Auditor reports clean 2024 opinion; Stewartville’s reserves, tax revenue rise
Summary
An independent auditor told the Stewartville City Council the city's 2024 financial statements received a clean, unmodified opinion and that fund reserves remain healthy, driven by higher property-tax collections and investment income.
Andrew of Smith Schafer Associates presented the city’s 2024 year-end financial statements and told the council the firm issued a clean, unmodified audit opinion on the city’s financial statements.
“This audit opinion is a clean, unmodified opinion,” Andrew said, adding the audit provides reasonable — not absolute — assurance that the statements are free of material misstatement. He told the council the city’s accounting records were “in good standing,” and that the firm found no exceptions in its tests of Minnesota legal compliance, including conflicts of interest and contracting rules.
The auditor highlighted the city’s tax base and revenue changes: total tax capacity was reported at about $7.25 million, up roughly $620,000 (about 9%) from the prior year, and property-tax collections rose to about $4,789,000, an increase of roughly $356,000 (about 8%). Property taxes represented roughly 52% of governmental revenues in 2024, up from about 49% the prior year. Investment income also increased, contributing to higher overall revenues and to the city’s ability to add to fund reserves.
On expenditures, the auditor said general government spending rose due mainly to salaries and benefits; public safety represented the largest share of governmental expenditures (about 31.5%), driven in part by an increased sheriff contract and fire pension pass-throughs. Public works expenditures rose because of street maintenance and repair work. The library, recreation, economic development and capital project funds were reviewed and presented with supporting figures.
The audit included a five-year look at the city’s debt-service requirements and the auditor noted that several special-assessment bonds and other debt instruments are scheduled to be paid down over the coming years. Net pension liabilities tied to the statewide public multi-employer pension plan (PERA) were presented as actuarially determined amounts recorded on the city’s books.
Council members and staff thanked the presenter after the briefing; no formal action was required to receive the audit presentation.
The council is expected to receive additional budget-to-actual detail as staff incorporate recommended wording changes the auditor flagged for clarity in the annual comprehensive financial report.
