Jun. 23—ROCHESTER — A review of Rochester’s annual audit shows the city increased its general fund revenues by $6 million in 2023, which included an added $3.8 million from local property taxes.
At the same time, the city saw a 9.7% — or $9.4 million — increase in related expenses.
The reported increases included an added $6.2 million in increased costs connected to public safety and $2.4 million for general government operations.
During their 3:30 p.m. study session on Monday, Rochester City Council members will review the latest financial report with Jason Boynton of Smith Shafer and Associates presenting the audit findings.
The information provided to council members ahead of Monday’s review shows the city had a $51.6 million general fund balance at the end of 2023, which is approximately 48% of the nearly $106.8 in fund expenses last year. The Minnesota State Auditor recommends cities maintain a balance of at least 42% to ensure the ability to cover five months of expenses.
Other city funds also saw increases in 2023.
The library operated at a surplus of $223,279, with nearly 82% of its revenue coming from nearly $7.8 million in property taxes. The result has the library fund ending 2023 with $3.4 million, or 37% of last year’s expenditures.
The municipal recreation system, which includes parks, golf, swimming pools and other programs, ended 2023 with a $2.6 million fund balance, which is equal to 19% of last year’s expenses. The program ended the budget year with a $379,000 surplus after relying on nearly $9.7 million in property taxes.
The city’s transit fund, which operates without local property tax revenue, saw a surplus of $1.3 million last year. It ended 2023 with $4.7 million in retained funds after seeing revenues increase by $1.6 million, largely from state and federal grants.
The city also ended the year with $253 million reserved for future capital improvement projects outlined in its six-year plan. It also increased its fund balance for future equipment replacement from $9.5 million in 2022 to $10.4 million by the end of 2023.
Meetings scheduled to be held during the week of June 24 include:
Rochester
—Outside Agency Oversight Committee, 1 p.m. Monday in room 104 of City Hall, 201 Fourth St. SE.
—City Council study session, 3:30 p.m. Monday in council chambers of the city-county Government Center, 151 Fourth St. SE. The meeting will livestream at www.rochestermn.gov/meetings/council-meetings and be available on Spectrum cable channel 180 or 188.
—Public Utility Board, 4 p.m. Tuesday in the Rochester Public Utilities community room, 4000 East River Road NE.
—Heritage Preservation Commission, 5 p.m. Tuesday in council chambers of the Government Center.
—Library Board, 4:30 p.m. Wednesday in the first floor meeting room of the Rochester Public Library, 101 Second St. SE.
—Planning and Zoning Commission, 6 p.m. Wednesday in council chambers of the Government Center.
Olmsted County
—Housing and Redevelopment Authority, 4 p.m. Tuesday in conference room 4 of the government center.
—Sheriff’s Civil Service Commission, 8 a.m. Wednesday with the location to be posted at https://olmstedcounty.primegov.com/public/portal
—Rochester-Olmsted Council of Governments, noon Wednesday in conference room A at 2122 Campus Drive SE in Rochester.
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