Waverly accepts clean 2025 audit, approves bond transfer and records-retention resolution; nuisance-code items tabled

Auditor Tyler See of Abdo Solutions presented the City of Waverly’s 2025 financial‑statement audit on April 14 and issued an unmodified (clean) opinion, noting no Minnesota legal compliance violations. The auditor identified three internal control findings common in small governments: limited segregation of duties, staff preparation of financial statements, and material audit adjustments that required auditor assistance. The auditor recommended diversifying where the city holds cash and developing a long‑term financial plan; he also noted capital project funds were about $300,000 in deficit after the Legion Park bathroom project.

See presented detailed fund-level information: the general fund balance equaled about 94 percent of the 2026 budget benchmark; revenues were roughly $150,000 over budget (attributed to building permits, grant revenue and development reimbursements) while expenditures ran about $93,000 over (driven by IT and engineering costs). Enterprise fund analysis showed the water fund cash balance below targets due to rising debt service, while the sewer fund exceeded targets and the stormwater fund showed a deficit tied to a recent stormwater study pending grant reimbursement.

Following the audit presentation, the council approved Resolution 2026‑18 to transfer the balance of a 2010 general obligation bond into the 2018 bond fund (motion Duske/Kittock; roll call vote 3–0). The council also approved Resolution 2026‑21 adopting the general records‑retention schedule and establishing electronic files as permanent records (motion Duske/Kittock; roll call vote 3–0).

City Administrator Carrie Krienke told the council that the city’s planned server replacement was budgeted at $13,000 but now estimates about $20,000 due to equipment price increases. Liquor Store Manager Wanda Tussing reported March liquor sales of $62,000, down from the prior year, and said a new liquor‑store manager will begin May 1. City Attorney Rhonda Pagel updated the council on proposed Chapter 90 nuisance ordinance revisions but the council tabled related resolutions 2026‑19 and 2026‑20 until the April 22 meeting to allow for additional review and consistency with other changes.

The council also approved routine agenda and consent items, a street‑dance request for June 6, and a motion supporting a Minnesota Mayors Association letter on the cost impacts of mandated leave programs for small cities; all recorded motions passed by unanimous vote of members present (3–0). The meeting adjourned at 7:26 p.m.