Oak Park Heights audit: clean opinion, general fund up about $637,000; pension liability noted

Rebecca of Redpath and Company told the Oak Park Heights City Council that the firm issued an unmodified (clean) opinion on the city’s 2024 financial statements and that a single audit finding — a required audit adjustment — was reported as a routine internal-control item.

"We issued a clean, unmodified opinion on the financial statements," Rebecca said, adding that the internal-control item involving an audit adjustment is common and not a concern. She said the audit also includes a Minnesota legal compliance review required by the Office of the State Auditor and that no legal compliance findings were identified for the year.

Rebecca summarized several financial highlights: the city’s general fund had an increase in fund balance of about $637,000 in 2025, revenues were modestly ahead of budget (notably investment earnings), and expenditures were under budget in areas including public safety salaries and snow clearing. She identified two sensitive accounting estimates: valuation of land held for resale and the city’s share of the net pension liability allocated by PERA; she said Oak Park Heights’ share for 2025 is just under $1,500,000.

On business-type funds, Rebecca said utility infrastructure costs are high and urged maintaining a gap between operating revenues and expenditures so the city can save for future debt service or capital needs. She recommended caution on reserves because property tax receipts arrive mainly midyear, and reserves help cover early-year cash flow.

The auditor invited questions; council members thanked Rebecca for the clear presentation. The report was accepted and no additional follow-up items were directed at staff at the meeting.