Minnetonka accepts 2025 audit: unmodified opinion, no findings; general fund balance rises to $29.6M

The Minnetonka City Council on Monday unanimously accepted the city—s 2025 Annual Comprehensive Financial Report after auditors reported an unmodified opinion and no findings.

Aaron Doll of audit firm BerganKDV told the council the auditors issued "an unmodified opinion on the city's basic financial statements," the firm—s highest assurance, and reported no internal-control or Minnesota legal compliance findings.

Finance staff and the city manager highlighted the city's financial position: the general fund—s assigned and unassigned fund balance stood at about $29.6 million as of Dec. 31, 2025, an increase from the prior year. General fund revenues totaled roughly $57.6 million in 2025, up about 9.9 percent, while expenditures rose driven in part by capital outlay and a one-time accounting recognition for multi-year software subscriptions.

Finance Director Daren Nelson and City Manager Mr. Funk said the capital outlay figures include offsetting other financing sources required by new accounting guidance and do not represent an $8 million cash shortfall. Nelson explained the accounting recognizes the full capital cost in year one alongside a financing source while the payment is spread over multiple years.

Councilmember Calvert moved to accept the ACFR and related audit reports with BerganKDV; Councilmember Maxwell seconded. The motion passed on a roll-call vote with all members present voting yes.

The city has posted the full ACFR and supporting schedules on its website for residents and analysts seeking detailed fund-level information.