Kennedy City audit shows healthy financial position

By Margie Holmgren, Editor
Marit Martell, auditor with Hoffman, Philipp, & Martell, PLLC, informed the Kennedy City Council of their healthy financial position at their March 17 meeting.
Martell went over the audited financials for the year ending Dec. 31, 2024. Kennedy was the first city to have their audit finalized.
“Honestly, overall, the financial position of the city is healthy, very good,” Martell informed the council.
The audit shows the city has increased their financial position by 6.5% in 2024. The city’s assets exceeded liabilities at the close of 2024 by $1,569,128.
Kennedy currently has three asset funds — sanitation, sewer and water. Martell pointed out that all three are doing well.
“We took out the sanitation and made it an enterprise fund and it made $13,500 last year,” she commented.
“All three have income provided by their activity so they are paying for themselves as they should be,” she explained. “You are charging the appropriate amount so they can pay for their own operations.”
The sewer fund made $18,768 last year and the water fund made $26,119.
Martell commented on these funds needing to have money saved up as the water tower project will be starting this year and the city knows they will be making some updates to the sewer system down the road.
The city paid off a loan from the MN Public Facilities Authority and so the only debt service requirement they still have is a UDSA loan for the purchase of a rescue van. the balance on this loan is $14,223 and $969 interest.
The city has $148,581 in their unassigned fund balance.
“We like to see a 30-50% cushion and you are sitting at 59 percent,” Martell explained. “So, you are exactly where you need to be.”
The city had only two findings, which included the segregation of duties and internal controls that most small cities have since there isn’t enough staff to segregate duties.
The other finding has been resolved as it was for the fire department accounting and financial reporting of pensions. This was resolved as of Jan. 1, when the fire relief association joined the Statewide Volunteer Firefighter Plan.
In other business, the city council:
• Approved sending City Clerk/Treasurer Melissa Woinarowicz to the state Capitol to testify before the house committee on Thursday, March 20 to request funding for the water tower project.
• Approved hiring Mike Olson to be the wastewater operator for the city of Kennedy pending his meeting with the personnel committee and signing the state required contract.
• Approved renewing a CD with KodaBank for 15 months at 4.05% interest.
• Approved moving payment of $225 for the water license holder from Greg Mitziga to Woinarowicz as of March 1 as she is now licensed and handling the paperwork for this position.
• Approved holding a public hearing regarding small cities grants at 5 p.m. on Monday, April 14, with the regular meeting to follow.
The next regular meeting is at 5:30 p.m. on April 14.