Ada City Council Faces Financial Challenges Amidst Audits and Community Projects
- Meeting Overview:
The Ada City Council convened to tackle pressing financial issues, including deficits in various funds and the impact of a recent audit. While the city’s financial health was a major focal point, discussions also touched on ongoing community projects, union negotiations, and regulatory matters. Key among the financial concerns was the revelation of deficits across several city funds, which if left unresolved, could necessitate borrowing from other funds, potentially leading to increased rates to balance the books.
During the meeting, it was emphasized that a strategic plan was needed to address these financial shortfalls. A participant referenced the financial report, highlighting the need to close out a stalled capital project due to prohibitive engineering costs. This project, known as “the rage second edition,” had not advanced due to its substantial financial burden. The council also reviewed an indebtedness schedule, which outlined upcoming debt payments, with most obligations considered manageable due to low interest rates.
The audit report provided further insight into the city’s finances, revealing discrepancies such as a significant cash reconciliation adjustment of approximately $33,000. The need for review and reconciliation of bank statements was underscored to prevent outdated checks from becoming unclaimed property. Additionally, the audit highlighted concerns about pledged collateral for bank deposits.
In an effort to enhance financial transparency and accuracy, new systems and procedures were being implemented to ensure timely audits and improved financial management.
Beyond financial matters, the council addressed several community projects and updates. The council also discussed ongoing contract negotiations for department heads, opting to move these discussions to a closed session to maintain privacy and allow for candid dialogue.
The meeting also highlighted the city’s beautification efforts, including plans to replace damaged American flag banners with new ones, alternating with anniversary-themed banners. The council approved a budget for fiberglass poles and flags to enhance the city’s aesthetic appeal, particularly for the upcoming 150th anniversary celebrations.
Union negotiations yielded agreements on employee compensation, including cost-of-living adjustments and increased longevity pay. The council recognized the importance of these changes. On the regulatory front, the council reaffirmed its alignment with county cannabis regulations, allowing for two establishments in Norman County, while leaving room for potential policy revisions based on community interest.
Additionally, the fire department welcomed two new members.
Finally, the council addressed various donation requests, including contributions to the Norman County Sheriff’s Department’s drug prevention program and local school events.
John Hintz
City Council Officials:
Scott Erickson, Mike Nelson, Scott Nordquist, Eric Ness, Casey Krieger, Shawn Roux, Wayne Kroshus
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Meeting Type:
City Council
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Committee:
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Meeting Date:
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Recording Published:
10/17/2025
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Duration:
71 Minutes
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Notability Score:
Routine
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State:
Minnesota
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County:
Norman County
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Towns:
Ada
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