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Wanamingo council accepts 2025 audit after debate over equipment purchase and reserves
Summary
Council approved the 2025 audit on a 5-0 vote after discussion about an unplanned $87,000 front-end pay loader purchase, leftover bond fund balances, and a small general fund deficit; auditors recommended monitoring utility rates and noted limited segregation of duties typical for a small office.
The Wanamingo City Council unanimously accepted the city’s 2025 audit at its May 11 meeting after councilmembers questioned recent capital spending and reserve levels.
Auditor Kali Lenz of CohnReznick summarized the report, saying the audit found no State or federal single-audit requirements for 2025 and no disagreements with management. The audit showed the city paid down $487,000 of debt last year, and the general fund ended 2025 with a $10,501 deficit and a $582,028 balance — a change that reduced the general fund reserve ratio from about 58% to roughly 50%.
Councilmember Jeremiah Flotterud pressed staff on an $87,000 front-end pay loader that he said was not planned for 2025 and would have turned the reported deficit into an apparent surplus if handled differently. City Administrator Michael Boulton responded that council decisions to alter the streets capital budget and reallocate funds related to a leased skid loader influenced the outturn, and he reiterated that budgeting is an estimate until actual bills arrive.
Lenz also flagged the Water Fund’s cash position: a decline tied to a large utility improvement project and unanticipated leak repairs. She recommended the city monitor water and sewer rates to ensure they cover operational costs and future capital needs.
After discussion the council approved Resolution 26-025 accepting the audit, 5-0. Council comments acknowledged the city’s improved debt position while noting questions about reserve-policy targets and how one-time capital decisions affect fund balances.
The council’s next regular meeting is scheduled for June 8, when members plan a tour of the fire hall and a discussion of future capital needs.
