At the May 27 city council meeting, Andrew Forliti of Smith Schafer presented the annual financial audit for the city of Caledonia. Forliti reported that the city received an unmodified or “clean” audit opinion for 2024, indicating that the city’s financial statements were presented fairly and in accordance with accounting standards.
Mayor Jeremy Leis called the meeting to order at 6 p.m., followed by the Pledge of Allegiance. The agenda and minutes from the previous meeting were approved as presented.
Council members in attendance were Robert (Bob) Klug, Amanda Ninneman and John Rauk. David Fitzpatrick was absent.
As in previous years, the city received one finding: a lack of segregation of accounting duties. Importantly, there were no compliance exceptions, and there was not a single audit in 2024.
Forliti went through the 44-page audit summary he referred to as the “Cliff Notes” version. Highlights included the following key points: 1. Unassigned fund balance in the General Fund $1,241,32, which was 60% of 2024 general fund expenditures. 2. LGA contributes less governmental revenue than property taxes. 3. Ambulance/Fire Building had a deficit fund balance in 2024. 4. Debt outstanding, net discount – Governmental $1,532,018 – Enterprise $8,694,302. All bond payments were made on a timely basis. 5. Water, sewer, dump, electric, stormwater, and liquor funds are generating sufficient cash flow to service outstanding bonds and maintain cash reserves. 6. The liquor fund reported a net increase of $27,149. Fund has a cash balance of $215,922.
The consent agenda was unanimously approved. Items included: payment of bills and disbursements; the hiring of EMT/EMR personnel – Tiffany Hill, Jack Strub, Skyler Paus, Michaela Kasten, Lakeisha Shannon, Jordan Tornstrom – who recently completed the EMT class offered by the Caledonia Ambulance Service, contingent upon passing their final EMT certification. Approval was also given for the purchase of a moisture analyzer at an estimated cost of $3,300 with surcharges and shipping for the Wastewater Treatment Plant (WWTP). Additionally, the council approved the declaration of surplus equipment for one retired ambulance, valued at approximately $15,000, to be processed through the State of Minnesota’s Surplus Services. As equipment is replaced, becomes inoperable, or reaches the end of its useful life, it is declared surplus and is no longer needed. It was noted that the city received a new ambulance on May 15. The council also approved a setback variance for properties located at 607 Winnebago St. S. and 608 N. Pine St., along with a lot subdivision for parcel ID 21082300.
Philanthropy Director Aaron Johnson of the Southern Minnesota Initiative Foundation (SMIF) attended the council meeting to share information about the resources SMIF offers communities in southern Minnesota. He explained that SMIF’s key focus areas include entrepreneurship, early childhood development, and community vitality.
SMIF ensures that “entrepreneurs and the region have the resources needed to thrive.”
Johnson highlighted that “SMIF has invested over $170 million in the region since 1986.” He noted that for every $1 donation to the foundation from Houston County, $12 is invested back into Houston County communities through grants, loans and programming. To date, SMIF has provided 11 loans to support entrepreneurs, awarded 171 grants to support community projects, and invested a total of $2.6 million in Houston County.
Johnson highlighted the $6,000 that was awarded through the Taylor Rural Childcare Grant to Blue Jays Daycare in Caledonia. The city of Caledonia is a Rural Entrepreneurial Venture community; the city received a $20,000 grant from SMIF in 2024 and is using the funds to support an E-Navigator to work in partnership with the Caledonia Chamber of Commerce.
Before the meeting was adjourned at 6:57 p.m., the Police Officer Wellness program discussion was tabled, and the council reviewed the overtime report for the pay period ending May 11.
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