{KXLG – Watertown, SD} The Watertown City Council received and preliminarily approved the 2024 financial statements presented by the city’s Finance Officer/Interim City Manager Kristen Bobzien at their Monday night meeting.
Bobzien said a final audit and report will follow…
The General Fund, which includes the Capital Improvement Fund, showed positive signs. Sales tax revenue increased by 1.1%, amounting to roughly $113,000. The city also saw a healthy increase in its General Fund balance of approximately $450,000, bringing the unassigned fund balance to $13.5 million. The Finance Officer noted that while this might seem high, it aligns with the city’s goal of maintaining three to four months of operating expenses in reserve, which is estimated to be between $7.6 and $7 million.
The Park and Recreation Fund’s fund balance decreased by around $520,000. While revenues increased, expenditures rose, largely due to the new ice arena’s initial operating costs…
The city had previously allocated $1 million in cash flow to support the ice arena in its early years of operation, and these funds are being utilized.
The Capital Improvement Fund also saw a decrease in its fund balance by $1.5 million, which was anticipated in the 2024 budget, reflecting a significant increase in the street improvement budget. An additional $1.7 million in expenditures is planned to be carried over into 2025, highlighting the importance of long-term capital planning. The unassigned balance in this fund remains healthy at over $19 million.
The Finance Officer emphasized that the goal of municipal budgeting is to maintain a conservative approach while still providing services and maintaining infrastructure…
The Prairie Lakes Wellness Center fund experienced a $185,000 decrease in its fund balance, with strong revenues but increasing expenditures. This fund, heavily supported by the Capital Improvement Fund for building improvements, is a focus for continued monitoring to achieve operational self-sufficiency through memberships.
Enterprise funds, including sewer, electric, water, gas, airport, and solid waste, all reported an increase in revenue over expenditure, indicating a positive financial position. The Finance Officer explained that revenue increases in the sewer and water funds are partly due to surcharges related to larger State Revolving Fund (SRF) loans, which will fund significant upcoming projects, including a $60 million sewer project. While fund balances may appear large, a portion is reserved to cover future debt payments associated with these loans…
Council member Lynn Jurrens discussed the financial aspects of the Wellness Center and the ice arena…
Bobzien responded that while both saw increased usage, the Wellness Center has faced financial challenges since the COVID-19 pandemic, making it difficult to achieve operational break-even and build the intended reserves for equipment replacement. The ice arena, in its first year, saw strong revenues but also utilized allocated funds to offset initial costs…
Council members Mike Danforth and Bruce Buhler noted the considerable community impact and economic benefits these facilities bring, extending beyond their direct financial performance…
The preliminary financial statements were unanimously approved by the council. Following the completion of the annual audit, a more comprehensive report will be presented.
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{KXLG – Watertown, SD} During Monday night’s open forum portion of the City Council meeting, resident Zach Thompson raised concerns regarding …
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