The meeting’s most critical agenda item was a detailed presentation of the city’s 2024 year-end audit by a representative from Smith Schaefer Associates. This positive outcome reflects well on the city’s accounting practices and adherence to Minnesota’s legal standards, with no exceptions found in compliance areas such as conflict of interest and bid law.

The audit presentation further dissected the city’s financial data, starting with the general fund, the primary operational fund for Stewartville. The total tax capacity saw a 9% increase, reaching around $7,250,000, while property taxes collected rose by 8% to $4,789,000, comprising roughly 52% of total governmental revenues. Local government aid also increased, totaling $1,315,000 for the year. Expenditures were analyzed, with general governmental expenditures rising to $1,667,000 due to salary and wage adjustments, while public safety expenditures reached $1,370,000, driven by higher costs related to the sheriff’s contract and fire pension obligations.

In terms of budget alignment, general fund expenditures exceeded budget expectations by $180,000, while revenues surpassed projections by $175,000, leaving the fund balance change within $5,000 of the anticipated amount. Special revenue funds, including those for libraries and fire services, reported being under budget, benefiting from an increase in property tax revenues and contributions from the American Rescue Plan Act.

Transitioning from financials to infrastructure, the council discussed a partnership agreement with MNDOT for the Highway 63 and Schuman Drive intersection improvements. The project, aimed at enhancing access to Highway 63, is estimated at $1,376,257, with the city committing $379,287 and submitting a grant request for $997,000 to the state. The council expressed cautious optimism about securing state funding, with the project projected to advance towards implementation by August 2026.

The discussion also touched on the possibility of incorporating a roundabout at the intersection, which would require careful planning and cost-sharing responsibilities. The council recognized the need for clarity on future project costs and the city’s financial commitments, especially given ongoing development activities in the area.

Further discussions focused on transportation improvements, particularly the installation of traffic lights at a specific intersection. Concerns were voiced regarding potential rear-end accidents, with a state representative noting skepticism about the effectiveness of a signal system in a high-speed area. Despite these concerns, the city plans to implement warning lights to alert drivers, a compromise due to financial constraints.

The council also approved a massage therapist application for Shing Yang Zang at Relax Body and Foot Spa, following a favorable background check and county health department approval. While the applicants are still on probation, the motion passed without opposition.

The public works director presented names for new full-time employees, which the council approved after clarifying employment statuses. The mayor provided community updates, acknowledging recent losses and encouraging participation in upcoming community events. The city administrator welcomed a new full-time employee, praised community fundraising efforts, and reminded the council of an upcoming workshop.

In public works updates, the anticipated arrival of a new street sweeper was noted, and ongoing construction projects were reported. The library director outlined summer activities planning, with a lighter schedule in May due to transitions.