--- ## author: Sue Barry date: D:20260604202021-05'00' --- ## AGENDA ## City Council ## Workshop Meeting June 9, 2026 ## Discovery Center, 4444 Hadley Ave N ## 5:15 PM 5:15 PM Review of 2025 Financial Audit 5:40 PM Police/City Hall Budget and Value Engineering 6:05 PM Wetland Outlots and City Ownership Discussion ## 6:25 PM Administrator Update ## 6:35 PM Council Topics ## 6:50 PM Adjourn ## COUNCIL MEMORANDUM ## To: Honorable Mayor and City Council ## From: Mikaela Huot, Finance Director Date: June 9, 2026 ## Subject: Review of 2025 Financial Audit ## BACKGROUND Minnesota Statutes require that cities issue an annual financial report prepared in accordance with generally accepted accounting principles (GAAP), which is audited in accordance with those principles by a firm of licensed certified public accountants or the Office of the State Auditor. This report consists of management’s representations concerning the finances of the City of Oakdale. Consequently, management assumes full responsibility for the completeness and reliability of all the financial information presented in this report. The City of Oakdale’s financial statements have been audited by LB Carlson, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended December 31, 2025, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent audit has issued an unmodified (“clean”) opinion on the City of Oakdale’s financial statements for the year ended December 31, 2025. The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Annual Comprehensive Financial Report for the year ended December 31, 2024. This was the 35 th consecutive year that the City has achieved this prestigious award. To be awarded a Certificate of Achievement, the City published an easily readable and efficiently organized report. Staff believes this year’s report will satisfy the requirements as well and will submit the finished Annual Comprehensive Financial Report to the GFOA for consideration. Jackie Huegel, Principal, from LB Carlson, will present an overview of the audit process and results. There is no action required of the City Council as this review is informational only. Formal acknowledgement of receipt of the 2025 Annual Comprehensive Financial Report (ACFR) will be at the Regular City Council meeting following Council Workshop on June 9, 2026. The Annual Comprehensive Fina…

--- ## author: Sara Ludwig date: D:20260619082700-05'00' --- ## WORKSHOP MINUTES ## OAKDALE CITY COUNCIL ## JUNE 9, 2026 The City Council held a Workshop on Tuesday, June 9, 2026 at Oakdale Discovery Center, 4444 Hadley Avenue North, Oakdale, Minnesota. The meeting began at 5:15 PM. ## Present: Mayor Kevin Zabel ## Council Members: Kari Moore ## Andy Morcomb ## Gary Severson ## Katie Wrich ## City Staff Members: Chris Volkers, City Administrator ## Sara Ludwig, City Clerk ## Jake Foster, Assistant City Administrator ## Mikaela Huot, Finance Director ## Melanie Lee, Human Resources Director ## Judie Maas, Accountant ## Luke McClanahan, Planning Manager ## Nick Newton, Police Chief ## Lori Pulkrabek, Communications Manager ## Mark Statz, City Engineer ## Ryan Stuart, Police Captain ## Cory Tietz, Public Works Director ## Miranda Williams, Accountant ## Kevin Wold, Fire Chief ## Others Present: Mike Healy, Project Architect, BKV Group ## Jackie Huegel, Principal with LB|Carlson ## Joe McCormick, Project Manager, Kraus-Anderson ## REVIEW OF 2025 FINANCIAL AUDIT Finance Director Mikaela Huot introduced Jackie Huegel, Principal with LB|Carlson, and noted that this item is informational only, with the City Council acknowledging receipt of the 2025 Annual Comprehensive Financial Report at their regular meeting later tonight. Ms. Huegel briefly went over the three reports provided to Council, the auditor’s role, and audit results for the year ended December 31, 2025. The City received an unmodified or “clean” opinion which is the desired audit result. No findings to report for internal control and compliance – financial audit and Minnesota legal compliance. Ms. Huegel presented the changes in the governmental fund balances by classification. Mayor Zabel asked what makes up the Restricted funds for the Public Works Facility. Ms. Huegel stated both bond proceeds and local option sales tax revenue. ## WORKSHOP MINUTES ## JU NE 9, 2026 ## PAGE TWO In response to Mayor Zabel’s question about the true bottom line of the total governmental funds without one-time outliers, Ms. Huegel noted approximately $40 million. Moving on, Ms. Huegel went over the General Fund year-end fund balance, noting compliance with the City’s fund balance policy for the last three years. In response to Mayor Zabel’s question about the dollar amount represented by an estimated reduction in current fund balance while remaining within the City's fund balance policy that incorporates maintaining a balance of 5.5 months of the subsequent years’ budgeted expenditures for working capital (percentage of 45.83%), Ms. Huot stated an estimated $3-4 million. Regarding the City’s fund balance policy, Mayor Zabel inquired whether the policy applies to the Enterprise Funds. City Administrator Chris Volkers recalled it does not. City staff will look into proposed changes in this regard. Mayor Zabel suggested that staff look int…