North St. Paul City Council — Transcript
Tuesday, May 5, 2026
2025 Financial Report Review
Alley Improvement Process Discussion
Votes (2)
Review of the 2025 Financial Report with the city audit firm LB Carlson LLP
The audit presented an 'unmodified' (clean) opinion for the 2025 financial statements, with no findings on internal controls but one comment regarding late invoice payments (2 of 40 tested were outside the 35-day window). The city's General Fund balance increased significantly to $6.9 million, reaching 67% of the next year's budget, well above the 50% policy, which positively impacts the city's Double A+ credit rating. Enterprise funds showed overall improved performance, though the Fiber Optic fund remains in a deficit. Future discussions will delve into the 10-year plan, cash balances, Q1 2026 performance, and a proposal to cap summer electric costs.
Alley Improvement Process Discussion
The discussion centered on developing a policy for private property owners wishing to improve public alleys, specifically focusing on 'segment' improvements rather than full 'through alleys.' Staff noted the lack of existing guidelines, leading to confusion when residents inquire. Key issues included establishing construction standards (e.g., proper base, width, drainage), determining city vs. private responsibility for maintenance and snow removal, addressing liability, and managing access. The city manager suggested using legal agreement mechanisms (like encroachment or license agreements) for private work, distinguishing them from city-led improvements. The council requested further research and a sample private agreement for future discussion, acknowledging the complexity of the issue.
Notable Quotes (6)
I think you're going to see once again that we have very good financial results and you're going to there's some graphs that um um our uh auditor will go through that'll really show you how much we have changed in the five years. Um it's pretty staggering. Um we've really put ourselves in a really good financial position and it's really due to the leadership that we get from city council, our city manager and all of our department heads.
For the audit results over that financial statement, we issued an unmodified opinion which is a clean opinion. That is the opinion you're looking for as part of your audit.
Part of it was, uh, the emphasis that we have a 50% fund balance policy and that we're above that. Um and Brian and and I um filled out all the questions that they had and one of the components that that uh they were concerned about is can we maintain that 50%. Um as you can see the results of this is at 67%. Um my comfort level is I wouldn't ever drop it below 60%. Um but yes, I think what uh at the end of the day, what the results of 2025 shows is that we definitely will maintain that double A+ um unless something um drastically goes wrong during this year.
And really what it is is discussion. We want to have a discussion as staff with council about public alleys and the concept of private improvements made in public alleys. And what brought this to our attention recently is we were approached as staff by property owners that abuted alley that is under improved with gravel and they said well we want to put some black top down. What do we do? Staff looked at each other and said we don't know. we don't have a process in place documented any place what they should do what the standard should be should the city even allow it.
I think this is a bigger bigger conversation and I I'll use my place as an example. Um behind my house there's this alleyway, but the alleyway isn't really an alley. It's a driveway to an individual's home. However, should something there's electrical can come over, there's power lines right there. It's there's city access. But if something happens to piping, water, water breaks, whatever that is, where on that line is it my responsibility or is it the homeowners? So, I look at it. If some of we have some of these gravel um alleyways and they're through alleyways, we should be treating them as if they are our part of our roads.
So, um, we've been talking a lot about and there there are a ton of complications here, right? And so, calling out things like drainage and survey and making sure that things are done correctly um is certainly a thing. I do um want to point out that there are potential agreement mechanisms that are available that allow private property owners to make improvements within public lands.
Ordinances & Resolutions (13)
The primary financial document being reviewed by the city council and auditor.
Large financial statements prepared by the city for audit and GFOA award submission.
Document summarizing audit findings or opinions.
LB Carlson document summarizing the audit results, used for the presentation.
Office of the State Auditor document outlining specific statutes for auditors to test annually.
Federal regulations governing federal funding received by local governments.
City policy requiring a minimum unassigned general fund balance of 50% of the subsequent year's budgeted expenditures.
The city's long-term financial planning document.
Request for Proposal for solid waste services, currently in the interviewing phase.
Local regulations defining alleys and governing construction, such as garages.
State administrative rules that provide a definition for public right-of-ways.
A potential legal mechanism discussed for allowing private property owners to make improvements within public lands.
A potential legal mechanism discussed, similar to an encroachment agreement, for private improvements on public land.