The meeting’s centerpiece was a detailed financial audit presentation by a representative from ABDO. The auditor outlined the financial status of the city, presenting a qualified opinion due to the non-implementation of Fire Relief Actuarial standards, justified by a cost-benefit analysis. The audit revealed five internal control findings, consistent with previous years, notably in the segregation of duties and financial statement preparation. Despite these findings, improvements were noted in the management of compensated absences and fire-related expenses.

The city’s general fund showed a robust unassigned fund balance, improving from 37% to over 53% of budgeted expenditures. This positive variance was attributed to factors such as public safety aid and nursing home-related refunds. Moreover, the TIF District number one saw an increase in fund balance, albeit with a $350,000 deficit, while the rural fire fund also experienced growth. The ARPA fund was noted to have funds earmarked for spending in 2024, and capital project funds included $120,000 in revenue for park enhancements.

The audit also highlighted enterprise funds, with the water fund’s improved cash balances due to bond maturation and the sewer fund’s declining cash balances, necessitating strategic planning for infrastructure maintenance. An important recommendation was made to develop documentation for internal controls to aid in staff transitions.

On the topic of garbage collection, the council discussed transitioning to a single service provider, emphasizing transparency and competitiveness in the selection process through a request for proposals. A point of contention arose regarding the lack of public vote on the decision, with some members advocating for residents’ ability to opt-out. The debate underscored differing opinions on service consolidation and its impact on police workload related to cleanup disputes.

The meeting also tackled utility rate adjustments, with a proposal to lower water rates while increasing sewer rates. This move was intended to strengthen the sewer enterprise fund, which has been under financial scrutiny. The council noted a previous request for a utility rate study, highlighting its necessity for informed decision-making in the upcoming budget cycle.

In other council business, a request by a resident to install a memorial bench and two red maple trees at a lakeside park was approved. The council emphasized coordination with the city’s director to ensure compliance with regulations. Additionally, the fire department reported on essential training exercises, and the police department updated on service calls and vehicle maintenance, stressing the need for streamlined repair protocols for emergency vehicles.

The council approved $13,000 for library tuckpointing repairs, with $6,000 already allocated from the previous budget. The council underscored the importance of maintaining the library’s historical integrity while ensuring necessary repairs. The administrator’s report highlighted ongoing projects, including a new grant opportunity for wastewater treatment, and confirmed the legitimacy of a mail program offering water service line insurance to residents.