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The 2024 audit of North Branch city finances raised a couple issues with non-compliance but for the most part, North Branch has a healthy fiscal situation.  The city was advised the receipts needed to support credit card bills were missing in some cases and the cash reconciliation process needs improvements.

The audit firm Abdo presented the audit data to the city council last week.   Justin Nilson cautioned council the fund balance policy setting the desired balance at 45 to 50 percent of annual expenditures,  is more like 35 percent and council needs to keep in mind that as the city budget grows, the percentage amount needed will be increased also.

City Finance Director Sharon Wright reminded council that they are only able to dip into unassigned fund balance and they have no access to the “assigned” monies that are dedicated.  North Branch spent down $1.1 million of its unassigned balance in 2024.

Abdo compares debt and spending per capita of clients to its other similarly sized cities in its audit reports and North Branch is within the range of the other class three municipalities. In categories like debt per capita at $1,377.  North Branch has $7 million in debt but a couple of major bond issuances are being retired soon. And, city 2024 spending per person was at $632, not all covered through property taxes however.

Nilson told council the stormwater and sewer enterprise accounts are seeing “sufficient” receipts, but the water account is at six months of operating expenses and should be monitored. 

Council accepted the audit unanimously.

In discussion later council adopted a proposed code text amendment to allow single family structures in an R3 zone.  Council agreed if the overall plat development density is at the level the multi-residential standards call for the single family is acceptable.

The Cedar Ridge Community LLC requested the single family housing be allowed to be incorporated into a project proposed for west of the freeway and south of the mall.  There are 52 acres total in the plat and it will be built out in phases, with 75 single family homes and 190 apartments in the initial phase.

Community Development Director Nate Sondrol said the developers have been working with staff and engineering on vegetation and buffer installation and garages among other concerns not addressed in early layout.  This project does not meet the Environmental Assessment Worksheet threshold, he added.

The single family in R3 change will be added to city code and the Cedar Ridge preliminary plat was approved.

~ Council also accepted the resignation of a staff accountant and approved the process for hiring a replacement. Contact city hall human resources Travis Miles.

~ The Press was advised by staff that the sale of the two lots in the area of County Market mall has been finalized.

For the last half-hour of the meeting there was informal council discussion on a topic placed on the agenda by the mayor.  Council talked about pros and cons of lot sizes, tree replacement rules and green space and how code requirements impact housing costs. 

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