Andrew Forliti of CPA firm Smith Schafer appeared before the Houston City Council at their March 10 regular meeting to present an audit recap of the financials for Houston for 2024. Smith Schafer issued a “clean” opinion on the December 31, 2024, financial statements which means the financials are free from “material misstatement.”
Forliti met previously with city employees Suzie Peterson and Michelle Quinn, and council members, Emily Krage and Danny Todd, to go over the audit. The council meeting was given an abbreviated “CliffsNotes” version.
The 2024 general tax levy was $573,753; there was a 6% increase in delinquent property taxes for the year. LGA revenues (local government aid) totaled $410,789, which was an increase of $26,241 from 2023. LGA is expected to be $411,215 in 2025. With the state not “kicking in as much,” property taxes needed to be increased in order to meet the budget.
The general fund expenditures for the year were under budget by $92,934. All other funds were also under budget with the exception of the volunteer fire fund and park and recreation fund due to capital outlay. General Fund reserves for 2024 showed a 52% unassigned fund balance, which shows the city to be in good shape financially.
The ambulance fund has a positive balance of $473,553; this is an increase of $109,238 for the year and includes a $67,000 grant from the state. The volunteer fire department showed a balance of $101,638; this is a decrease of $26,537 for the year due to a capital purchase and necessary repairs.
The city has been timely in paying off the four general obligation bonds; the last of the four will be paid off in 2031. General obligation revenue funds and other debts are also being paid on time.
Revenues from water and sewer rates are now paying all operating costs, debt service and administrative share.
PFA Loan Applications
Derek Olinger of Bolton Menk encouraged the council to approve city staff submitting applications to MPFA (Minnesota Public Facilities Authority) for funding from both the Clean Water Revolving Fund which is used for wastewater/sewer system improvements and Drinking Water Revolving Fund which is used for water system improvements.
These loan applications are not tied to any of the grant funding that the city hopes to get for lead service line replacement on the Spruce Street project.
The Spruce Street project was originally planned for the summer of 2025, but the state funding was not available. The project has been delayed until 2026. The city is continuing to take the necessary steps to be ready to go as soon as funding becomes available; applying for these two forms of funding is part of the process. The council passed resolutions to apply for both funding programs.
Ambulance 60-year Celebration
On April 26 from 11 a.m. to 2 p.m. the Houston Ambulance will be celebrating 60 years of serving the Houston community, at the community center. The celebration is developing into quite a party; many community groups are supporting the celebration.
The Lions have generously donated financially as well as providing staffing so the ambulance crew members can be at the celebration. They are also sponsoring a silent auction to benefit the ambulance training center.
River Valley Convenience will prepare a pulled pork meal; Rushford State Bank is sponsoring food for the event from local vendors. Carlson Roasting will offer coffee drinks with the proceeds benefiting the ambulance.
Balloons by Kevin will be there. Houston Schools will display art projects celebrating the occasion. Houston Area Museum will host a display of ambulance memorabilia.
The ambulance crew will be conducting blood pressure monitoring with a recording booklet for attendees.
Business Conducted
The council conducted the following business:
•Offering city equipment to the Cross of Christ members to use to repaint parking stall stripes in front of the church correctly.
•Authorizing city staff to close the city’s Bremer credit card and open a credit card with Rushford State bank.
•Adopting a proclamation related to Arbor Day observance and action; this was necessary in order for the Tree Board to apply to be named a Tree City USA.
•Hearing from PWD Randy Thesing that the new water plant is doing its job in removing radium according to recent test results.
•Learning from City Administrator Michelle Quinn that facilities rentals are up significantly for the coming year.
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