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Edina auditors issue clean opinion on 2025 finances; city issues $20.4M in bonds at favorable rates
Summary
Auditors gave Edina an unmodified opinion on the 2025 annual comprehensive financial report; council received the ACFR. Separately, council approved two bond sales — $8.44M for street/utility work and $11.95M taxable sales‑tax bonds for park projects — at interest costs below pre‑sale estimates.
The City of Edina’s independent auditor presented the 2025 Annual Comprehensive Financial Report to the council on June 16 and issued an unmodified (clean) opinion, meaning the auditor found the city’s financial statements fairly stated in all material respects. Auditor commentary noted a prior‑period restatement that produced a material‑weakness finding and one Minnesota legal‑compliance item involving payment timing; staff and auditors discussed those issues and next steps during the presentation.
Key financial highlights presented by the auditor included a general‑fund revenue increase of about 6% in 2025 (driven primarily by the levy and by permit and license activity), expenditures up about 5%, and an increase in the city’s unrestricted fund balance that kept Edina within the state auditor’s guidance of 35–50% of annual expenditures and within the city’s internal policy range. Enterprise funds showed mixed results: utilities reported surpluses (partly driven by bond proceeds related to capital work), golf operations improved, the arena continued to run a deficit consistent with prior years, and liquor‑operation revenues showed a downward sales trend though gross margin held near prior levels.
During the same meeting the council authorized two bond sales. Financial advisors and staff reported that the Series 2026A general‑obligation bonds for street reconstruction and water/sewer/storm capital were awarded to TD Financial Products (final true interest cost ~3.25%) for about $8.44 million in principal. The Series 2026B taxable general‑obligation sales‑tax revenue bonds for Braar Arena and Fred Richards park work were awarded to Piper Sandler at a true interest cost of roughly 4.53% for about $11.95 million. Council adopted resolutions awarding both sales. Staff described both results as favorable to pre‑sale expectations and said proceeds will fund CIP projects already reviewed by council.
Council voted 4–1 (one abstention) to receive the ACFR; bond sale resolutions passed unanimously. Auditors thanked city finance staff for cooperation; the report and supporting schedules will be filed with the Office of the State Auditor and posted to the city’s website.
