At a recent meeting, the Watertown City Council reviewed and provisionally approved the city's financial statements for 2024. These were presented by Kristen Bobzien, who serves as both Finance Officer and Interim City Manager. The report highlights various funds showing positive trends, such as an increase in sales tax revenue and a robust General Fund balance. However, some areas like the Park and Recreation Fund experienced decreases due to operational costs. Additionally, capital improvements and enterprise funds remain strong despite certain challenges. A final audit is expected to follow this preliminary approval.

In 2024, Watertown demonstrated fiscal responsibility while managing its diverse municipal funds. According to Ms. Bobzien, the General Fund exhibited a notable rise in sales tax receipts, contributing approximately $113,000 more than the previous year. Furthermore, there was a significant addition of nearly $450,000 to the General Fund balance, bringing it up to $13.5 million. This figure aligns with the city's strategic reserve goals, ensuring sufficient reserves to cover several months of operational expenses.

However, not all sectors fared as well. For instance, the Park and Recreation Fund encountered a reduction of about $520,000. Although revenues improved, expenditures surged primarily because of the new ice arena's start-up costs. To support this facility during its nascent phase, the city had set aside $1 million. As anticipated, these allocated resources are currently being used.

The Capital Improvement Fund also witnessed a drop of $1.5 million in its balance, consistent with budget projections for increased street enhancement expenditures. An additional $1.7 million in spending will carry over into 2025, emphasizing the necessity of long-term planning. Despite this decrease, the unassigned balance within this fund remains substantial at over $19 million.

Regarding the Prairie Lakes Wellness Center, its fund balance diminished by $185,000. While revenues remained solid, rising expenditures have necessitated closer monitoring. Significant support from the Capital Improvement Fund has been instrumental in building upgrades, aiming for eventual self-sufficiency through membership growth.

Enterprise funds covering sewer, electric, water, gas, airport, and solid waste operations all reported favorable financial positions. Increased revenues surpassing expenditures were attributed partly to surcharges linked to larger State Revolving Fund loans, which will finance major upcoming projects, including a $60 million sewer initiative. It’s important to note that although fund balances appear sizable, portions are earmarked for future debt obligations tied to these loans.

Council member Lynn Jurrens delved into discussions concerning the financial dynamics of the Wellness Center and the ice arena. Both facilities showed increased usage but faced distinct financial hurdles post-pandemic. Meanwhile, Mike Danforth and Bruce Buhler highlighted the broader community benefits these establishments provide beyond their immediate fiscal results.

The council unanimously endorsed the preliminary financial statements. Once the annual audit concludes, a comprehensive report encompassing detailed findings will be submitted for further review.