Chaska City Council — Transcript
Monday, July 21, 2025
Annual Financial Review and Audit
Economic Development Initiatives and Local Business Expansion
Votes (4)
2024 Annual Financial Reports
Moved by Council member Hatfield [0:34:04] · Seconded by Council member Gra [0:34:11]
The City of Chaska received an unmodified, or 'clean,' audit opinion on its 2024 Comprehensive Annual Financial Report (CAFR), the highest level of assurance. This was the first audit by Clifton Larson Allen (CLA) in 25 years. Restatements primarily concerned asset classification (utility assets into the utility fund, lease accounting for the turbine fund), bond premium amortization, and revenue recognition for receivables, with no significant impact on overall financial position. A federal single audit was also conducted and received a clean opinion on compliance, with a minor finding about documentation of review processes. The City maintains strong bond ratings (AA for general obligation debt, A for electric revenue debt) and its GFOA Certificate for Excellence in Financial Reporting for the 35th consecutive year, which is valued by bond analysts. The Chaska Fire Relief Association's financial report also received an audit, noting consistent internal control weaknesses due to limited staff and a new legal compliance finding regarding an unobtained insurance certificate, both of which are being addressed.
Authorize Letter of Intent for TIF Assistance for the Proposed EDCO Project
Moved by Council member Gra [0:38:29] · Seconded by Council member Benes [0:38:33]
The City Council considered authorizing a Letter of Intent (LOI) to provide Tax Increment Financing (TIF) assistance for EDCO's proposed 235,000 sq ft headquarters, manufacturing, and warehouse facility in the Southwest Chaska Business Park. The estimated TIF assistance of up to $1.644 million over an 8-year economic development district aligns with city policy to expand the tax base, create jobs, and support industrial development. The LOI is a preliminary, non-binding step to formalize a TIF plan and development agreement, which will return for future council approval. This item also required approval from the EDA.
Letter of Intent with Autopros to Purchase and Expand on EDA Property at 1595 Old Ottabon Road
Moved by Commissioner Hatfield [0:50:41] · Seconded by Commissioner Bennish [0:50:45]
The Economic Development Authority (EDA) approved a Letter of Intent (LOI) allowing AutoPros, a local auto repair business, to purchase a vacant, under half-acre EDA-owned lot at 1595 Old Ottabon Road. AutoPros plans a 3,000 sq ft expansion, which includes four new service bays, a new lobby, and is expected to create 7-8 new jobs. The negotiated sale price is $35,000, contingent on planning approvals and dedicating a larger easement for an existing sewer line. This project supports a long-standing local business, contributes to job growth, and allows for productive reuse of a vacant EDA property.
Authorize Letter of Intent for TIF Assistance for the Proposed EDCO Project (EDA)
Moved by Commissioner Hatfield [0:52:50] · Seconded by Commissioner Gra [0:52:55]
The Economic Development Authority (EDA) officially authorized the Letter of Intent (LOI) for TIF assistance for the proposed EDCO headquarters and manufacturing project. This action mirrored the City Council's earlier approval, as TIF requests require endorsement from both the City Council and the EDA to proceed. Staff confirmed that the details and rationale were consistent with the prior council discussion, emphasizing the project's contribution to local economic development and job creation.
Notable Quotes (8)
The bottom line on this report is it's referred to as an unmodified or clean opinion. That means there's no qualifications that they found in their audit. It's the highest level opinion that they can issue for the report. Um, it is our goal to make sure we maintain that through our operations each year to maintain that status.
The city received an unmodified or clean audit opinion. That is that highest level of assurance that we that we can provide as your external auditors and that's the opinion you want to see on that. That means your financial statements are fairly fairly stated in all material respects.
I was at GFOA this year and I was in a session with bond rating analysts and I actually posed the question of what how does this certificate when they review a financial report for a governmental entity change their process and they said you know it does give us a baseline that's a higher expectation so we already know that this has been thoroughly reviewed it it has a higher level of disclosure and so as we're doing our analysis we probably don't need to do as much of a detailed review as as we would someone else who we have to basically do our analysis from the ground up.
To help make the project financially feasible, ADCO has submitted requests for TIFF financing. Uh TIFF, just kind of as a reminder of what TIFF is, it's a public financing tool um that uses the increase in the property taxes generated by the new development and it's used to help offset certain eligible project costs and also it helps with city infrastructure costs that are necessary for the project.
I mean I agree with you. I think it's it's exciting and I think you know being able to use this um having our tiff policy kind of customized for each individual kind of component or business that comes in and having these opportunities um allows our community to grow and to build a better job base and opportunities. So, it's a kind of a tool in our tool belt that you know we can use um that can be for the benefit of the community at large.
AutoPros is a long-standing locallyowned auto repair business. It's outgrown its space, proposing a 3,000 square foot expansion. It would add four new service bays, a new lobby, and between seven and eight new jobs to the area. The expansion aligns with our industrial land use for the area and our goals.
I was super excited when I saw this because great business, Chesca Ruts, Chesa Connection... But what actually sticks out to me, and I think it's worth saying because you talked about the integrities. I had a family member who went to a different place... Went to Autoros... and got a very honest, integrity, reasonable price and was the right answer.
President and Commissioners. So, I don't think we need to probably go through this again. It's the exact same item that was in the council meeting. Uh, just we need to have it approved through the EDA as well. Uh, so unless you have any questions, uh, staff recommends moving forward with this.
Ordinances & Resolutions (24)
The main financial document reviewed by the City Council.
The financial report of the Chaska Fire Relief Association, audited annually.
The city's primary and most detailed financial report, approximately 178 pages long.
Governmental Accounting Standards Board principles that guide financial reporting and implementation.
A guide published by the Office of the State Auditor used for external audits.
An additional audit required when federal expenditures exceed a certain threshold ($750,000 in 2024, rising to $1 billion in 2025).
A non-binding document outlining general terms for TIF assistance for the EDCO project.
The city's adopted policy supporting industrial projects through TIF assistance.
Initial plans for the EDCO project, previously approved by council in May.
The expected next stage of plans for the EDCO project, anticipated in August.
A formal plan to establish a TIF district.
A formal agreement to be negotiated with EDCO following the LOI.
The annual property tax collected to support general governmental operations.
A quarterly report shared with the council detailing cash balances and investments.
Legal requirements restricting the use of certain bond proceeds.
A resolution approved by the City Council determining benefit increases for the Fire Relief Association based on funding level.
An annual award received from the Government Finance Officers Association (GFOA) for high standards in financial reporting.
A future agreement to be negotiated for the sale of EDA property to AutoPros.
The process used by the city to select a new independent auditor.
Financial element related to the turbine fund, subject of a restatement.
Financial asset class, subject of a restatement related to revenue recognition timing.
Employee benefit (accrued vacation and sick leave), calculation updated due to new accounting standards.
A significant accounting estimate for the city's future benefit obligations.
A federal requirement site for continuing debt disclosure filings by bond issuers.