Lakeville council acknowledges clean 2025 audit; general fund balance exceeds policy

City officials presented and the council acknowledged Lakeville's 2025 comprehensive annual financial report after an audit from ABDO. Tyler C, identified in the meeting as a senior audit manager at ABDO, told the council the firm issued an unmodified (clean) opinion on the city's financial statements and found no instances of noncompliance on either the financial-statement audit or the federal single-audit work, which included SAFER grant testing.

Tyler summarized key financial figures: the city's fund-balance policy calls for 40–50% of the following year's budget; at the end of 2025 the general fund balance was presented as roughly 54% of the following year's budget, exceeding the policy target. The presentation showed the general fund balance increased by about $2.2 million during 2025 with an ending general fund balance near $25,000,000. Tyler also noted approximately $1,800,000 was transferred from the general fund to capital project funds during the year.

The auditors presented other fund details: capital project fund balances were reported around $80,000,000 (mostly restricted or committed), enterprise and liquor fund cash positions and operating trends were reviewed, and the city's total cash and investments across all funds were shown at approximately $182,000,000. Council members asked questions about debt-per-capita and capital spending; the auditor said elevated debt measures reflect an active capital year and timing of projects.

Council member (speaker 2) moved to acknowledge receipt of the annual report and the motion passed on roll-call: Walter, Volk and Burm recorded aye. After formal acknowledgement, staff will post the report on the city's website as part of the official record.