Kali Lentz, Smith Schafer & Associates, Ltd., reviewed a summary of the city’s 2024 financial audit during the council’s March 17 meeting.
The city was issued an unmodified “clean” opinion of its financial statements. The management’s discussion and analysis was prepared by city staff. There were no exceptions to Minnesota legal compliance.
The tax levy was 44% of total governmental revenues. Local Government Aid (LGA) in the amount of $539,116 was 20% of total governmental revenues.
Preston received $196,723 from the cities of Lanesboro and Fountain for police protection services. An additional $27,608 came from state police aid. Ambulance services are self supporting.
The city’s unassigned General Fund balance as a percentage of General Fund expenditures was 57% in 2024. Historically, the city’s percentage runs between 50% and 60%.
There is a fund balance in the Capital Improvements Reserve of $518,922.
Electric, water, sewer, and storm water services are supported by rate payers. There is no debt in the emergency service fund. Electric, water, and sewer funds are operating with sufficient cash to meet annual debt service and to provide reserves for future capital improvements.
All debt is being adequately funded and all outstanding bonds are being paid on time.
The audit report was approved as presented.
Grass Rig Purchase
Fire Chief Ramon Hernandez explained they were looking at a 2025 3500 Chevrolet truck at a cost of $51,110 to replace the 2006 truck. The total cost to replace the truck fully equipped with skid unit, radio, wrap, tools and other items is expected to cost $118,993.15. The amount budgeted for the replacement is $130,000 ($25,000 city, $25,000 townships, and $80,000 fire gambling). The rig is used primarily for grass and brush fires. The purchase of the new truck and equipment was approved as presented.
There was some discussion about the sale of the 2006 Chevrolet Silverado crew cab truck and equipment. There was a consensus to check with other municipalities first for a possible sale of the equipped unit. If it is not sold to another municipality the city will consider a sealed bid or auction of the truck without equipment. The council passed a resolution to proceed with the sale of the 2006 Chevrolet truck and equipment as discussed.
Other Business in Brief
- An application from Francis and Rebecca Lehto of 109 Main St. SE for a rear lot variance for an addition to an accessory structure was approved. The rear lot coverage variance requested was 36%; city code allows for 30% (the request exceeded lot coverage by 363 square feet). The unique circumstances on the property are due to topography on the lot which limits the buildable area. Approval had been recommended by Planning & Zoning after a public hearing.
- Closures of a parking lot and street closures requested by the Prevent 22 Task Force for an event on June 21 were approved.
- Approval was granted for the purchase of a minimum of 25 ton of road salt for winter of 2025-2026 (annual cost about $2,500).
- Approval was granted for councilman Steve Hall to attend League of Minnesota Annual Conference in Duluth on June 25-27 at an estimated cost of $1,450.
- Approval was granted for city administrator Ryan Throckmorton to attend second year of Minnesota Clerks and Finance Officers Associations as St. Cloud State University from May 5-9 at an estimated cost of $1,750. This is the second year of a three year program.
- The annual Preston Historical Society funding request in the amount of $3,000 was approved.
- Eight proposals have been received for the city’s update on a Comprehensive Plan. Mayor Kurt Reicks along with staff will review the proposals and bring a recommendation back for the council’s consideration.
- The meeting scheduled for April 21 at 6 p.m. will include the Local Board of Appeal and Equalization review.
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