Jason Boynton, Smith Schafer, reviewed the 2023 financial summary at the city council’s March 11 meeting.
The city received an unmodified “clean” opinion, a reasonable assurance that the financials are free of misstatement. There were no exceptions to Minnesota statute compliance.
Taxable tax capacity had increased from 2022. Local Government Aid (LGA) represented 15.8% of the city’s governmental revenues and 27.7% of the total general fund revenues in 2023. LGA will increase in 2024.
Governmental expenditure increases over 2022 were mostly due to Planning and Zoning professional fees and employee costs and recruitment related to the transition of the city administrator position.
Unassigned general fund balance ($1,841,789) as a percentage of next year’s general fund property tax levy and LGA for 2023 was 69.7% (policy is 40-60%). Boynton explained the reserves are higher than excepted policy due to ARPA funds, excess TIF dollars and Public Safety Aid (one-time items). The Lone Stone TIF District was decertified in 2023.
There was one new bond issue in 2023 for the street improvement project issued for Prospect and Grand streets. Payments are being made timely on all city debt.
The Capital Goods unrestricted fund balance totaled $1,045,372 at the end of 2023. This fund is available to fund items identified in the capital replacement plan.
The Chatfield Center for the Arts project was completed in 2023.
Other Business in Brief
• A resolution was adopted approving the Amco Third Addition Preliminary Plat. The Planning and Zoning Commission had taken public testimony at a March 4 meeting and reviewed the application submitted by G-Cubed Development before recommending approval. Ten conditions are attached to the subdivision preliminary plat for eight family lots. The property is located west of the intersection of Vindmoll Drive SE and Amco Drive SE, along the extension of Amco Lane SE. The platted area is 21.16 acres.
• A detailed list of Chatfield Police Department policies was approved.
• A Joint Powers Agreement with Olmsted County regarding outdoor sirens was approved. Olmsted County Homeland Security and Emergency Management monitors weather conditions throughout the county. The agreement outlines the city’s responsibilities to purchase and install components for the warning system and the county’s responsibility to monitor weather and to activate warning systems under listed conditions.
• Mayor John McBroom congratulated Chatfield wrestlers.
• City Administrator Michele Peterson and staff members will meet with legislators to discuss city priorities.
• The citywide rummage sale is scheduled for May 4.
• The city council meets next on March 25.
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