HomeMy WebLinkAbout2026-06-22 Joint Power Water Board AgendaJoint Powers Water Board
AGENDA
Regular Meeting of June 22, 2026
Joint Powers WTP
11100 50th Street NE
Albertville, MN
6:00 PM
Chairperson Engineer
Mike Amery, City of Hanover Chris Larson, SEH
Board Members Operations
Rob Olson, City of Albertville John Seifert, Veolia
Gretchen Barrett, City of Hanover Ruth Klick, Veolia
Joe Hagerty, City of St Michael Dustin Carlson, Veolia
Zach Schoen, City of St Michael
Bob Zagorski, City of Albertville
1.Call to Order / Roll Call
2.Approve Agenda
3.Consent Agenda
3.1. Approval of Previous Regular Board Meeting Minutes – Page 2
3.2. Approval of List of Claims – Page 4
3.3. Approval of Investments - Page 5
3.4. Approval of Monthly Operations Reports – Page 8
3.5. Approval to Purchase Dehumidifier - Page 12
4.General Business
4.1. 2025 ABDO Financial Audit Presentation and Documents - Page 14
5.Engineer - None
6.Operations - None
7.Other Business / Announcements / Correspondence
7.1. Boy Scouts Appreciation - Page 61
8.Adjourn
Page 1 of 61
Joint Powers Water Board
Regular Meeting Minutes
April 27, 2026
1. Call to Order. The regular meeting of the Joint Powers Water Board was called to order by Chairperson
Amery, on Monday, April 27, 2026 at 6:00 p.m. at the Joint Powers Water Board Water Treatment Plant,
11100 50th St NE, Albertville, MN 55301.
Board present: Mike Amery Gretchen Barrett Joe Hagerty
Rob Olson Zach Schoen Bob Zagorski
Board absent: None
Board substitute: None
Staff present: John Seifert, General Manager, Ruth Klick, Project Associate
Staff absent: Dustin Carlson, Plant Supervisor
Engineering absent: Chris Larson, Short Elliott Hendrickson, Inc. (SEH)
2. Agenda: Hagerty moved, Schoen seconded to adopt the Agenda as presented.
Motion to approve carried 6-0.
3. Consent Agenda For item 3.3, discussion occurred in which Seifert provided background
information on the ASR and Bacteriological reports.
Hagerty moved, Olson seconded to approve the Consent Agenda as presented.
Motion to approve carried 6-0.
4. General Business: For item 4.1, Olson moved, Barrett seconded to approve the LMCIT renewal
Motion to approve carried 6-0.
For item 4.2, Olson moved, Schoen seconded to award the website upgrade to
Catalis. Motion to approve carried 6-0.
5. Engineer: The Board discussed the letter to the Wright County Highway Department on
County Road 18. No motion needed.
6. Operations: None
7. Other Business: The Board discussed the Xcel Energy rebate. No motion needed.
8. Adjournment: Barrett moved, Schoen seconded to adjourn the meeting at 6:39 PM.
Motion carried 6-0.
Page 2 of 61
Joint Powers Water Board
Regular Meeting Minutes
May 27, 2026
1. Call to Order. The regular meeting of the Joint Powers Water Board was called to order by Chairperson
Amery, on Monday, May 27, 2026 at 6:00 p.m. at the Joint Powers Water Board Water Treatment Plant,
11100 50th St NE, Albertville, MN 55301.
Board present: Mike Amery Joe Hagerty
Rob Olson Zach Schoen Bob Zagorski
Board absent: Gretchen Barrett
Board substitute: None
Staff present: John Seifert, General Manager, Ruth Klick, Project Associate
Staff absent: Dustin Carlson, Plant Supervisor
Engineering absent: Chris Larson, Short Elliott Hendrickson, Inc. (SEH)
2. Agenda: Hagerty moved, Schoen seconded to adopt the Agenda as presented.
Motion to approve carried 5-0.
3. Consent Agenda Schoen moved, Zagorski seconded to approve the Consent Agenda as
Presented. Motion to approve carried 5-0.
4. General Business: None
5. Engineer: None
6. Operations: None
7. Other Business: None
8. Adjournment: Olson moved, Schoen seconded to adjourn the meeting. Motion carried 5-0.
Page 3 of 61
JOINT POWERS WATER BOARD CHECK REGISTER SUMMARY MEETING DATE: 4/27/26
Check #Vendor Check Date Amount Comments
e CITY OF ST MICHAEL 6/22/2026 $386,227.36 May 2026 Receipt by Charge
e CENTERPOINT ENERGY 6/26/2029 $103.26 May 2026 Invoices
e MN DEPT OF REVENUE 6/9/2026 $1,367.00 May 2026 Sales Tax
e Xcel Energy 6/2/2026 $19,430.21 May Electricity
e Payment Services Network 6/22/2026 $6,401.11 May Credit fees
Andrew/Michelle Sawrey $122.61 Ref cr bal 10667 38th Cir NE
Brenda/Dean Rostamo $185.05 Ref cr bal 13415 44th Cir NE
Catherine Ako $1,000.00 Ref cr bal 2689 Ivy Ave NE
City of Hanover $69,096.86 May 2026 Receipt by Charge
Davd/Anastasia Becker $86.70 Ref cr bal 1401 Janett Ave NE
DDT LLC $307.28 Re-issue check #21768 lost in the mail
Dean/Bernie Grant $159.99 Ref cr bal 416 Cottonwood Av NE
Donavan/Lisa Moon $147.39 Ref cr bal 4560 Mason Av NE
ESRI $691.00 Annual ArcGIS Invoice#5140649
Glenn Sanders $88.95 Ref cr bal 11911 48th St NE
Hoff Barry Attorneys $519.00 Re-issue invoice 19409
James/Rebecca Reynolds $3.00 Ref cr bal 68 Gillard Ave SE
Jason Emch $125.34 Ref cr bal 2409 Jaber Ave NE
Jeff/Christine Jankowiak $117.87 Ref cr bal 14980 47th St NE
Jessica Vankuyk $126.56 Ref cr bal 4173 Jandel Ave NE
Jim/Dar Walczak $5.14 Ref cr bal 7299 20th St NE
Jodi Favata $107.32 Ref cr bal 409 Heights Rd NW
Justin Bretz $156.13 Ref cr bal 11247 16th St NE
Kali Perkins $3.98 Ref cr bal 12745 39th St NE
Kathy Johnson $124.07 Ref cr bal 13487 45th St NE
Kelly/Darrin Bennett $161.75 Ref cr bal 3896 Melby Ave NE
Loren/Diane Bell $163.95 Ref cr bal 3262 Kahlen Av NE
MCFOA $50.00 Member application for Sara
Mike Fehn $2,108.77 RPZ return
Mitch/Elizabeth Faust $146.69 Ref cr bal 300 Edgewood Dr SE
Nicolas Jones & Ashley Hoagland $161.76 Ref cr bal 2274 Langston Ct NE
Open Door $175.00 Ref cr bal 209 Grand Ave
Open Door Labs Inc $160.42 Ref cr bal 573 Kayla Ln NE
Peter/Barbara Sargent $181.35 Ref cr bal 1569 Hansack Av NE
Randolph Wacker $157.68 Ref cr bal 3286 Lachman Ct NE
Shawn Dutton $166.96 Ref cr bal 300 Ivory Av NE
Veolia Water $29,397.01 July bill & 2025 R&M reconciliation
Weber Lawn & Landscape LLC $2,724.00 May Invoice #3002
WSB $482.00 May GIS Fees
Yisel Andrade $126.85 Ref cr bal 2301 Kester Ave NE
$523,067.37
Mike Amery Rob Olson
Gretchen Barrett Bob Zagorski
Joe Hagerty Zach Schoen
Page 4 of 61
Investment Summary 05/31/26
Page 1
Purch Maturity Certificate Balance Transfers Transfers Unrealized Interest/Balance
PMA Date Date Amount Rate 4/30/2026 Purchases Sales in out Gain/(Loss) Dividends 5/31/2026
4M Portfolio (Rev Project Fund)3.60% $515,710.26 $1,573.40 $517,283.66
4MP 3.62% $1,283,517.20 $3,945.85 $1,287,463.05
CD Latino Community Credit Union 2/28/2024 2/27/2026 $228,000.00 4.75%$0.00
CD American National Bk & Trst 2/29/2024 3/2/2026 $228,550.00 4.65%$0.00
CD FirstBank Southwest, GA 9/17/2025 6/15/2026 $243,000.00 3.79% $243,000.00 $0.00 $243,000.00
CD Third Coast Bank, TX 9/17/2025 6/15/2026 $243,100.00 3.75% $243,100.00 $0.00 $243,100.00
CD KS StateBank, KS 9/17/2025 9/17/2026 $240,600.00 3.86% $240,600.00 $0.00 $240,600.00
CD Minnesota Power EE Crd Union, MN 9/17/2025 9/17/2026 $240,700.00 3.77% $240,700.00 $0.00 $240,700.00
CD Freedom Northwest Crd Union, ID 9/17/2025 9/17/2026 $240,800.00 3.78% $240,800.00 $0.00 $240,800.00
CD Servis First Bank, FL 9/17/2025 9/17/2026 $240,700.00 3.78% $240,700.00 $0.00 $240,700.00
CD Western Alliance Bank , CA 9/17/2025 9/17/2026 $240,800.00 3.76% $240,800.00 $0.00 $240,800.00
CD Consumers Credit Union, IL 9/17/2025 9/17/2026 $240,400.00 3.94% $240,400.00 $0.00 $240,400.00
CD NorthEast Comm Bank, NY 9/17/2025 9/17/2026 $240,200.00 3.97% $240,200.00 $0.00 $240,200.00
CD NexBank, TX 9/17/2025 9/17/2026 $240,800.00 3.79% $240,800.00 $0.00 $240,800.00
DTC Valley Natl Bk Wayne, 4/2/2024 4/2/2027 $244,960.22 4.46% $245,446.14 -$303.17 $245,142.97
Total $4,455,773.60 $0.00 $0.00 $0.00 $0.00 -$303.17 $5,519.25 $4,460,989.68
Wells Fargo Purch Maturity Certificate Interest Balance Transfers Transfers Unrealized Interest/Balance
Date Date Amount Rate 4/30/2026 Purchases Sales in out Gain(Loss) Dividends 5/31/2026
MM Checking 3.90% $548,581.64 $302,250.00 $1,645.29 $852,476.93
Bond Federal Home Loan 3/2/2021 2/25/2026 $185,000.00 0.90%$0.00 $0.00 $0.00 $0.00
Bond Federal Home Loan 7/28/2021 7/28/2026 $300,000.00 1.50% $298,734.00 $0.00 $459.00 $299,193.00
Bond Federal Home Loan 10/28/2021 10/28/2026 $300,000.00 1.60% $299,238.00 $0.00 $231.00 $299,469.00
Bond Federal Home Loan 11/1/2021 11/23/2026 $300,000.00 2.00% $299,688.00 -$300,000.00 $0.00 $312.00 $0.00
Bond Federal Home Loan 12/30/2021 12/30/2026 $200,000.00 2.00% $198,898.00 $0.00 $56.00 $198,954.00
Bond Federal Home Loan 7/12/2021 7/12/2027 $275,000.00 2.00% $269,043.50 $0.00 $233.75 $269,277.25
CD JP Morgan Chase BK 11/30/2020 11/30/2026 $200,000.00 0.75% $196,460.00 $0.00 $450.00 $196,910.00
CD Manuf & Traders Tr Co 1/20/2023 1/20/2027 $245,000.00 4.00% $245,132.30 $0.00 -$124.95 $245,007.35
CD Morgan Stanley Bk , UT 3/31/2022 3/30/2027 $245,000.00 2.25% $241,295.60 $0.00 $149.45 $241,445.05
CD BMO Harris BK NA 7/13/2021 7/13/2028 $245,000.00 1.00% $233,262.05 $0.00 -$193.55 $233,068.50
$2,830,333.09 $0.00 -$300,000.00 $302,250.00 $0.00 $1,572.70 $1,645.29 $2,835,801.08
CDARS Settle Maturity Certificate Interest Balance Purchases Sales Transfer Transfer Unrealized Interest/ Balance
Date Date Amount Rate 4/30/26 IN Out Gain(Loss) Dividends 5/31/2026
CD CIBC 1/23/2025 1/22/2026 ($ 235,500.00) 3.95%$0.00 $0.00 $0.00
CD Primary Bank 1/23/2025 1/22/2026 ($ 14,500.00) 3.95%$0.00 $0.00 $0.00
CD Bank of America, NA 4/10/2025 4/9/2026 $236,500.00)3.95%$0.00 $0.00 $0.00
CD BOKF, National Assoc.4/10/2025 4/9/2026 ($ 8,654.96) 3.95%$0.00 $0.00 $0.00
CD Heritage Bank of Commerce 4/10/2025 4/9/2026 ($ 166,959.04) 3.95%$0.00 $0.00 $0.00
CD Pinnacle Bank 7/24/2025 7/23/2026 ($ 41,963.49) 4.10% $41,963.49 $0.00 $41,963.49
CD Primary Bank 7/24/2025 7/23/2026 ($ 221,000.00) 4.10% $221,000.00 $0.00 $221,000.00
CD American National Bank & Trust 8/21/2025 8/20/2026 ($ 112,555.77) 4.10% $115,353.17 $0.00 $115,353.17
CD BOKF, National Assoc.8/21/2025 8/20/2026 ($ 149,959.04) 4.10% $153,686.04 $0.00 $153,686.04
CD First Citizen B&T 10/2/2025 4/2/2026 ($ 243,500.00) 3.73%$0.00 $0.00 $0.00
CD Stifel Bank 10/2/2025 4/2/2026 ($ 56,500.00) 3.73%$0.00 $0.00 $0.00
CD Flushing Bank 10/2/2025 10/1/2026 ($ 236,500.00) 3.83% $241,029.74 $0.00 $241,029.74
CD Pinnacle Bank 10/2/2025 10/1/2026 ($ 63,500.00) 3.83% $64,716.23 $0.00 $64,716.23
CD American National Bank & Trust 10/2/2025 10/1/2026 ($ 123,944.23) 3.83% $126,318.17 $0.00 $126,318.17
CD Belmont Bank & Trust 10/2/2025 10/1/2026 ($ 38,856.41) 3.83% $39,600.63 $0.00 $39,600.63
CD City National Bank of FL 10/2/2025 10/1/2026 ($ 23,662.85) 3.83% $24,116.07 $0.00 $24,116.07
CD DL Evans Bank 10/2/2025 10/1/2026 ($ 236,500.00) 3.83% $241,029.74 $0.00 $241,029.74
CD Misson Valley Bank 10/2/2025 10/1/2026 ($ 236,500.00) 3.83% $241,029.74 $0.00 $241,029.74
CD Modern Bank NA 10/2/2025 10/1/2026 ($ 236,500.00) 3.83% $241,029.74 $0.00 $241,029.74
CD Pinnacle Bank 10/2/2025 10/1/2026 ($ 131,036.51) 3.83% $133,546.29 $0.00 $133,546.29
CD Watermark Bank 10/2/2025 10/1/2026 ($ 236,500.00) 3.83% $241,029.74 $0.00 $241,029.74
CD Western Alliance Bk 10/2/2025 10/1/2026 ($ 236,500.00) 3.83% $241,029.74 $0.00 $241,029.74
CD Bank of San Francisco 10/23/2025 10/22/2026 ($ 238,500.00) 3.70% $242,328.85 $0.00 $242,328.85
CD Cathay Bank 10/23/2025 10/22/2026 ($ 21,472.09) 3.70% $21,816.80 $0.00 $21,816.80
CD Clear Mountain Bank 11/28/2025 11/27/2026 ($ 78,118.76) 3.70% $79,088.95 $0.00 $79,088.95
Page 5 of 61
Investment Summary 05/31/26
Page 2
CD Union Bank & Trust 11/28/2025 11/27/2026 ($ 236,500.00) 3.70% $239,437.20 $0.00 $239,437.20
CD Wayne Bank 11/28/2025 11/27/2026 ($ 175,381.24) 3.70% $177,559.38 $0.00 $177,559.38
CD Independence Bank 12/4/2025 12/3/2026 ($ 23,472.08) 3.70% $23,749.40 $0.00 $23,749.40
CD Pinnacle Bank 12/4/2025 12/3/2026 ($ 236,500.00) 3.70% $239,294.24 $0.00 $239,294.24
CD Beneficial State Bank 01/22/2026 1/21/2027 ($ 23,347.48) 3.45% $23,347.48 $0.00 $23,347.48
CD Isreal Discount Bank of New York 01/22/2026 1/21/2027 ($ 236,500.00) 3.45% $236,500.00 $0.00 $236,500.00
CD Bank Hapoalim BM 4/2/2026 4/1/2027 ($ 69,131.27) 3.80% $69,131.27 $0.00 $69,131.27
CD Wallis Bank 4/2/2026 4/1/2027 ($ 236,500.00) 3.80% $236,500.00 $0.00 $236,500.00
CD Cornerstone Capital Bank, SSB 4/9/2026 4/8/2027 ($ 33,972.57) 3.73% $33,972.57 $0.00 $33,972.57
CD First Carolina Bank 4/9/2026 4/8/2027 ($ 238,500.00) 3.73%($ 238,500.00) $0.00 $238,500.00
CD SmartBank 4/9/2026 4/8/2027 ($ 238,500.00) 3.73%($ 238,500.00) $0.00 $238,500.00
Total $4,466,204.67 $0.00 $0.00 $0.00 $0.00 $2.00 $0.00 $4,466,204.67
RBC Settle Maturity Certificate Interest Balance Purchases Sales Transfer Transfer Unrealized Interest/ Balance
Date Date Amount Rate 4/30/26 IN Out Gain(Loss) Dividends 5/31/2025
Cash/MM 0.00% $1,318.98 $1,318.98
Treasury 3.88% $1,418,527.30 ($ 9,557.33) $3,612.78 $1,431,697.41
CD Bankunited Natl Assn 1/22/2021 1/22/2026 $245,000.00 0.55%$0.00 $0.00 $0.00 $0.00
CD CFG Comnty Bk Baltimore, MD 8/11/2022 3/11/2026 $245,000.00 3.80%$0.00 $0.00 $0.00 $0.00
CD Mountainone Bk Mass 3/11/2021 3/11/2026 $245,000.00 0.55%$0.00 $0.00 $0.00 $0.00
CD UBS Bk USA Salt Lake City, UT 6/16/2021 6/16/2026 $245,000.00 0.85% $244,064.10 -$171.16 $553.70 $171.16 $244,617.80
CD Discover Bk Greenwood, DE 7/17/2019 7/17/2026 $150,000.00 2.45% $149,536.50 $0.00 $151.50 $149,688.00
CD Ally Bank Midvale UT 8/4/2022 8/4/2026 $245,000.00 3.45% $244,706.00 $0.00 $44.10 $244,750.10
CD Live Oak Bkg Co Wilmington, NC 10/8/2020 10/8/2026 $245,000.00 0.60% $241,503.85 -$120.82 $561.05 $120.82 $242,064.90
CD Goldman Sachs New York, NY 11/2/2021 11/10/2026 $245,000.00 1.10% $241,442.60 -$1,336.42 $372.40 $1,336.42 $241,815.00
CD Jonesboro St Bk Jonesbore, LA 11/27/2020 11/27/2026 $245,000.00 1.00% $240,967.30 -$201.37 $448.35 $201.37 $241,415.65
CD Bank of Old Monroe MO 2/5/2021 2/5/2027 $245,000.00 0.65% $239,017.10 -$130.89 $482.65 $130.89 $239,499.75
CD American Express 2/25/2025 2/26/2027 $245,000.00 4.20% $245,553.70 $0.00 -$186.20 $245,367.50
CD United Bankers Bk Bloomington 2/28/2025 2/26/2027 $245,000.00 4.20% $245,619.85 -$845.75 -$210.70 $845.75 $245,409.15
CD Bankers Bk Madison, WI 3/12/2021 3/12/2027 $245,000.00 0.80% $238,536.90 -$161.10 $426.30 $161.10 $238,963.20
CD Northeast Cmnty Bk White 4/30/2020 4/30/2027 $245,000.00 1.35% $238,882.35 $0.00 $286.65 $239,169.00
CD Morgan Stanley Private Bk 5/17/2022 5/17/2027 $245,000.00 3.35% $243,598.60 -$4,070.02 -$196.00 $4,070.02 $243,402.60
CD Sunwest Bk Irvine, CA 7/23/2020 7/23/2027 $245,000.00 0.80% $235,856.60 -$161.10 $279.30 $161.10 $236,135.90
CD Farmers & Merchants Bk Berlin 1/28/2022 7/28/2027 $245,000.00 1.60% $238,130.20 -$322.19 $122.50 $322.19 $238,252.70
CD Frazer Bk Altus, OK 8/27/2021 8/27/2027 $245,000.00 0.95% $236,527.90 -$191.30 $161.70 $191.30 $236,689.60
CD Bridgewater Bk Bloomington, MN 9/18/2020 9/20/2027 $245,000.00 0.80% $235,964.40 -$191.30 $186.20 $191.30 $236,150.60
CD Washington Cnty Bk, Neb 3/30/2021 9/30/2027 $245,000.00 1.10% $235,491.55 $0.00 $147.00 $235,638.55
CD Washington State Bk, Iowa 10/19/2021 10/19/2027 $245,000.00 1.10% $235,378.85 -$221.51 $112.70 $221.51 $235,491.55
CD Legacy Bk & Tr Co Rogersville 10/29/2020 10/29/2027 $245,000.00 0.65% $233,352.70 -$130.89 $222.95 $130.89 $233,575.65
CD Unity Bank Clinton, NJ 12/18/2020 12/20/2027 $245,000.00 0.70% $232,531.95 $0.00 $154.35 $232,686.30
CD Drake Bk St. Paul, MN 7/22/2022 1/21/2028 $110,000.00 3.45% $109,118.90 -$311.92 -$195.80 $311.92 $108,923.10
CD First Natl Bk Philip, SD 8/21/2020 2/22/2028 $245,000.00 0.75% $231,360.85 -$151.03 $31.85 $151.03 $231,392.70
CD Signature Bk of Ark Fayettville 2/24/2023 2/24/2028 $245,000.00 4.70%$0.00 $0.00 $0.00 $0.00
CD First Fed Svgs & Ln Assn Lakewood 8/6/2020 6/30/2028 $245,000.00 0.90% $229,508.65 $0.00 -$166.60 $229,342.05
CD Merrick Bk South Jordan, UT 7/31/2020 7/31/2028 $245,000.00 1.00% $229,464.55 $0.00 -$247.45 $229,217.10
CD Apex Bk Camden, TN 10/2/2020 10/2/2028 $215,000.00 0.70% $198,883.60 -$123.70 -$232.20 $123.70 $198,651.40
CD Heartland Bk Geneva, NB 10/29/2021 10/30/2028 $245,000.00 1.15% $228,768.75 $0.00 -$360.15 $228,408.60
CD Malaga Bk Palos Verdes, CA 10/29/2021 10/30/2028 $245,000.00 1.20% $228,986.80 -$241.64 -$369.95 $241.64 $228,616.85
CD Country Club Bk Kansas City, MO 1/29/2021 1/29/2029 $245,000.00 0.95% $225,902.25 -$191.30 -$465.50 $191.30 $225,436.75
CD Spiritbank NA Tulsa, OK 3/30/2022 3/29/2029 $245,000.00 2.30% $233,891.70 $0.00 -$776.65 $233,115.05
CD Mizrahi Tefahot Bk LTD 4/10/2024 3/7/2030 $245,000.00 4.30% $247,249.10 $0.00 -$1,381.80 $245,867.30
CD Frontier Bk Madison, NE 6/28/2021 6/28/2030 $245,000.00 1.40% $220,176.60 -$281.92 -$1,014.30 $281.92 $219,162.30
CD Toyota Financial Svgs Henderson, NV 8/21/2020 8/21/2030 $245,000.00 1.10% $218,897.70 $0.00 -$1,051.05 $217,846.65
CD Celtic Bank Salt Lake City, UT 8/31/2021 8/30/2030 $245,000.00 1.45% $219,745.40 $218,623.30
CD Bank of American NA 12/11/2025 12/16/2026 $235,000.00 3.85% $234,866.54 $234,776.16
CD First GTY Bk Hannond LA 12/11/2025 12/18/2026 $235,000.00 3.80% $234,794.45 $234,711.96
CD State Bk India Chicago 12/11/2025 12/17/2026 $235,000.00 3.80% $234,794.09 $234,712.27
Totals $9,642,919.21 $0.00 $0.00 $9,557.33 -$9,557.33 -$2,109.10 $13,170.11 $9,652,603.43
Page 6 of 61
Investment Summary 05/31/26
Page 3
Beg Balance Deposit Withdrawals Ending Balance
Deerwood
Page 7 of 61
Monthly Operations Report
April 2026
Executive Summary
Joint Powers effectively produced 85,145,000 gallons of water in the report month. All bacteriological samples were negative. The
average fluoride concentration was 0.77 mg/L (Limits are 0.5 & 0.9).
Operations
The standard operations of the facilities include:
Major Activities
Uncommon Operations and Major Corrective Maintenance:
❖ Annual VFD Maintenance
Safety & Training
Each month our staff performs inspections of all safety equipment such as fire extinguishers, eyewash stations, chemical showers, and
emergency lighting. We also have safety meetings during the month that consist of both routine and non-routine topics.
Call-Outs (After-Hours Emergency Calls)
❖ None
❖ Daily testing of fluoride and chlorine in the system. ❖ Monthly performance inspections on wells.
❖ Monthly bacteriological sampling (25 samples). ❖ Bulk chemical deliveries.
❖ ERT missed reads/ meter checks. ❖ Chemical feed systems adjustments & maintenance.
❖ Laboratory equipment calibrations. ❖ Safety and training meetings.
❖ MC Lite meter reading routes for Hanover & St. Michael. ❖ Regularly scheduled operations & maintenance meetings.
❖ Routine daily rounds, inspections, and security checks
of the water treatment plant.
❖ Routine weekly off-site facilities inspections and security
checks.
❖ Regular backwashing of filters, reclaiming and pumping
of backwash sludge.
❖ Monthly performance inspections of emergency generators.
❖ Monitoring & regulating access to the water towers for
telecommunications companies to make repairs &
upgrades.
Page 8 of 61
Regulatory Communications
Our monthly regulatory communications were completed satisfactorily and on-time. These were:
❖ The monthly fluoridation report to the MDH
❖ The monthly bacteriological test results to the MDH
❖ The monthly injection/recovery report to the EPA
Major Client / Public Relations Issues
❖ None
Distribution System Statistics
Total Hanover St Michael Joint
Powers Comments
Locates (GSOC) 707 136 557 14 Gopher State One Call, Tickets Received
Hydrants Flushed 93 0 39 54 Spring/Fall (Joint Powers Are Albertville)
Customer Service Visits 43 3 40 0
Including water quality issues (Albertville), water
usage issues, curb stops on/off,water main
operations, special locate tickets (not through
GSOC) & misc. issues.
Inspections 34 8 26 0
Meter/ERT Issues/Repairs 51 6 45 0
These include out-of-bounds read checks, leaking
meters, bad ERTs/replacements, wiring issues,
missed reads, monthly meter reading, etc.
Maintenance Work Orders 43 1 0 42 These include issues/repairs & regular
maintenance for the dist. systems & JP facilities.
Finals 63 11 52 N/A
YTD Reconcilable Limit Budget
Budget Expenses Balance
LIM $ 307,000 $ 68,039 $ 238,961
Final reconciliation will occur after year-end finances have been processed.*No updates on Actual
available at time of report. Estimated
Appendices
Monthly Fluoride Report, Monthly Bacteriological Report, Monthly ASR EPA Report
Page 9 of 61
Monthly Operations Report
April 2026
Executive Summary
Joint Powers effectively produced 152,349,000 gallons of water in the report month. All bacteriological samples were negative. The
average fluoride concentration was 0.72 mg/L (Limits are 0.5 & 0.9).
Operations
The standard operations of the facilities include:
Major Activities
Uncommon Operations and Major Corrective Maintenance:
❖ Replaced the flow meters for filter 1, 2, and 3
❖ Replaced the flow meter for Well #7
Safety & Training
Each month our staff performs inspections of all safety equipment such as fire extinguishers, eyewash stations, chemical showers, and
emergency lighting. We also have safety meetings during the month that consist of both routine and non-routine topics.
Call-Outs (After-Hours Emergency Calls)
❖ None
❖ Daily testing of fluoride and chlorine in the system. ❖ Monthly performance inspections on wells.
❖ Monthly bacteriological sampling (25 samples). ❖ Bulk chemical deliveries.
❖ ERT missed reads/ meter checks. ❖ Chemical feed systems adjustments & maintenance.
❖ Laboratory equipment calibrations. ❖ Safety and training meetings.
❖ MC Lite meter reading routes for Hanover & St. Michael. ❖ Regularly scheduled operations & maintenance meetings.
❖ Routine daily rounds, inspections, and security checks
of the water treatment plant.
❖ Routine weekly off-site facilities inspections and security
checks.
❖ Regular backwashing of filters, reclaiming and pumping
of backwash sludge.
❖ Monthly performance inspections of emergency generators.
❖ Monitoring & regulating access to the water towers for
telecommunications companies to make repairs &
upgrades.
Page 10 of 61
Regulatory Communications
Our monthly regulatory communications were completed satisfactorily and on-time. These were:
❖ The monthly fluoridation report to the MDH
❖ The monthly bacteriological test results to the MDH
❖ The monthly injection/recovery report to the EPA
Major Client / Public Relations Issues
❖ None
Distribution System Statistics
Total Hanover St Michael Joint
Powers Comments
Locates (GSOC) 821 150 660 11 Gopher State One Call, Tickets Received
Hydrants Flushed 0 0 0 0 Spring/Fall (Joint Powers Are Albertville)
Customer Service Visits 44 7 37 0
Including water quality issues (Albertville), water
usage issues, curb stops on/off,water main
operations, special locate tickets (not through
GSOC) & misc. issues.
Inspections 39 7 32 0
Meter/ERT Issues/Repairs 54 12 42 0
These include out-of-bounds read checks, leaking
meters, bad ERTs/replacements, wiring issues,
missed reads, monthly meter reading, etc.
Maintenance Work Orders 39 1 0 38 These include issues/repairs & regular
maintenance for the dist. systems & JP facilities.
Finals 72 7 65 N/A
YTD Reconcilable Limit Budget
Budget Expenses Balance
LIM $ 307,000 $ 85,084 $ 221,916
Final reconciliation will occur after year-end finances have been processed.*No updates on Actual
available at time of report. Estimated
Appendices
Monthly Fluoride Report, Monthly Bacteriological Report, Monthly ASR EPA Report
Page 11 of 61
TO : Joint Powers Water Board
FROM : John Seifert
DATE : June 22, 2026
SUBJECT : Authorization to Purchase Dehumidifiers
Dehumidifier Replacement Recommendation
The water treatment plant currently utilizes five separate dehumidifiers to control humidity within
the filter rooms. During normal plant operations, chilled water passes through the filters and
associated piping, creating condensation on equipment surfaces and floors. The combination of cold
process water, warm summer temperatures, and elevated humidity causes the filters and piping to
"sweat," increasing moisture levels within the rooms.
Maintaining proper humidity levels is essential to minimizing corrosion associated with normal plant
operations. Uncontrolled moisture can accelerate deterioration of critical treatment equipment,
reduce the service life of painted and coated surfaces, and create safety hazards due to standing
water and slippery floors. Following the recent rehabilitation and repainting of the treatment filters,
replacing the aging dehumidification equipment is a timely investment that will help protect this
infrastructure and preserve the value of the rehabilitation work.
Several of the original five dehumidifiers have been replaced over the years with like or similar
Model 195 units. Staff recently evaluated the performance and efficiency of the existing equipment
and identified a more efficient replacement option. The model number represents the unit's
moisture removal capacity in pints per day. The existing Model 195 removes up to 195 pints of water
per 24-hour period, while the proposed replacement Model 335 removes up to 335 pints per day.
In addition to its greater moisture removal capacity, the Model 335 is significantly more energy
efficient. The existing Model 195 removes approximately 5.4 pints of water per kilowatt-hour
(kWh), while the proposed Model 335 removes approximately 9.3 pints per kWh. This represents an
improvement in energy efficiency of more than 70 percent, resulting in lower operating costs while
providing greater dehumidification capacity.
Staff also determined that the Model 335 performs effectively at lower ambient temperatures and
operates on 240-volt power while drawing less amperage than two existing Model 195 units
combined. Based on this evaluation, a single Model 335 can replace up to two Model 195 units while
maintaining or improving humidity control. This approach reduces the number of units requiring
maintenance, lowers electrical consumption, and provides a significant capital cost savings
compared to replacing the existing units on a one-for-one basis.
MEMO
Page 12 of 61
Replacing the existing dehumidifiers with higher-capacity, more efficient units will improve
protection of critical treatment equipment, reduce long-term operating and maintenance costs, and
help maintain a safe working environment within the filter rooms.
Company Quoted Price
Mid America Meter and Supply $5,185.00
Core & Main Supply $5,799.95
Recommended Motion:
● Motion authorizing the purchase of a new 335 Quest dehumidifier from Mid America Meter
in the amount of $5,185.
Page 13 of 61
TO : Joint Powers Water Board
FROM : John Seifert
DATE : June 22, 2026
SUBJECT : Abdo 2025 Audit Results
Staff has worked with Abdo on the annual audit process. The Board will receive a video presentation
highlighting the 2025 audit. Pending direction by the Board, Staff is looking for approval of the 2025
audit as presented.
Recommended Motion:
● Authorize the approval of the 2025 audit as presented.
MEMO
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Executive Governance
Summary
Page 15 of 61
June 17, 2026
Board of Commissioners
Joint Powers Water Board of
Albertville, Hanover and St. Michael
Albertville, Minnesota
We have audited the financial statements of the Joint Powers Water Board of Albertville, Hanover and St. Michael (the
JPWB), Albertville, Minnesota, as of and for the year ended December 31, 2025 and have issued our report thereon dated
June 17, 2026. Professional standards require that we provide you with information about our responsibilities under
generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit.
We have communicated such information in our letter to you dated December 1, 2025. Professional standards also
require that we communicate to you the following information related to our audit.
Significant Audit Findings
In planning and performing our audit of the financial statements, we considered the JPWB
reporting (internal control) as a basis for designing auditing procedures for the purpose of expressing our opinion on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the internal control
over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the internal control
over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees,
in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely
basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a
reasonable possibility that material misstatement of the financial statements will not be prevented or detected
and corrected on a timely basis. A significant deficiency is a deficiency, or combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit the attention of those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was
not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies
and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations,
during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified. We identified certain deficiencies in internal
control described below as findings 2025-002 and 2025-003, which we consider significant deficiencies.
2 Page 16 of 61
Finding Description
2025-002 Preparation of the Financial Statements
Condition:As in prior years, we were requested to draft the audited financial statements and related
footnote disclosures as part of our regular audit services. Auditing standards require auditors to
communicate this situation to the Board as an internal control deficiency. Ultimately, it is
and the responsibility of the auditor to determine the fairness of presentation of those
statements. From a practical standpoint we do both for you at the same time in connection with
our audit. This is not unusual for us to do with organizations of your size. However, based on
recent auditing standards, it is our responsibility to inform you that this deficiency could result in
a material misstatement to the financial statements that could have been prevented or detected
by your management. Essentially, the auditors are not to be part of your internal control process.
Criteria: Internal controls should be in place to provide reasonable assurance over financial reporting.
Cause: From a practical standpoint we do both for you at the same time in connection with our audit.
This is not unusual for us to do with organization of your size.
Effect: The effectiveness of the internal control system relies on enforcement by management. The
effect of deficiencies in internal controls can result in undetected errors in financial reporting.
Recommendation: It is your responsibility to make the ultimate decision to accept this degree of risk associated
with this condition because of cost or other considerations. As in prior years, we have instructed
management to review a draft of the auditor prepared financials in detail for their accuracy; we
have answered any questions they might have, and have encouraged research of any accounting
guidance in connection with the adequacy and appropriateness of classification of disclosure in
your statements. We are satisfied that the appropriate steps have been taken to provide you with
the completed financial statements. While management is reviewing the financial statements we
recommend a disclosure checklist is utilized to ensure all required disclosures are presented and
management should agree its financial software to the numbers reported in the financial
statements.
Management Response:
Board and management accepts the degree of risk associated with this condition and thoroughly
reviews a draft of the financial statements.
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Finding Description
2025-003 Limited Segregation of Duties
Condition:During our audit we reviewed procedures over cash disbursements, cash receipts, cash
reconciliation, and journal entries and found the JPWB to have limited segregation of duties over
those transaction cycles.
Criteria:There are four general categories of duties: authorization, custody, record keeping and
reconciliation. In an ideal system, different employees perform each of these four major
functions. In other words, no one person has control of two or more of these responsibilities.
Cause:As a result of the limited number of staff, in the disbursement cycle, the accountant has access
to checks, ability to posts to the general ledger, and prepares bank reconciliations. The
accountant also has the ability to set up/maintains customers, receives checks, records receipts,
posts and approves journal entries, and prepares the bank reconciliation. Lastly, the accountant
is the only staff member consistently making journal entries in the fund accounting software and
there is no formal process for review.
Effect:The existence of this limited segregation of duties increases the risk of fraud.
Recommendation:While we recognize the number of staff is not large enough to eliminate this deficiency, we
recommend that the JPWB evaluate the current procedures and segregate duties where possible
and implement any compensating controls. We are aware some compensating controls are in
place; however, it is important that the JPWB Board is aware of this condition and monitor all
financial information.
Management Response:
Management recognizes that it is not economically feasible to correct this finding, however is aware of the deficiency and
is relying on oversight by management and the JPWB Board to monitor this deficiency.
Compliance
As part of obtaining reasonable assurance about whether the JPWB's financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a direct and material effect on the financial statements. However,
providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not
express such an opinion. The results of our tests noted one instance of noncompliance or other matters that are required
to be reported under Minnesota statutes noted below as finding 2025-001.
4 Page 18 of 61
Finding Description
2025-001 Time Period for Payment
Condition:Auditing for legal compliance requires a review of the JPWB
indicated three instances of non-compliance of 35 days out of our sample size of twenty-five.
Criteria:Minnesota statute section 471.425 requires that the JPWB pay bills within 35 days from receipt.
If the invoice is not paid within 35 days, interest at 1.5 percent per month is to be added to the
amount due.
Cause:This was due to invoices submitted and received after the internal cutoff date.
Effect: The JPWB is out of compliance with this statute.
Recommendation: We recommend that the JPWB develop policies and procedures related to the accounts payable
cycle. These policies and procedures should include payment terms that are outlined within State
statutes. We also recommend JPWB continue utilizing a date stamp to document when all
invoices are received.
Management Response:
The JPWB agrees with the finding citing turnover during the year resulting in invoices being paid outside of the legal
compliance requirements noted above.
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting
policies used by the JPWB are described in Note 1 to the financial statements. No new accounting policies were adopted
and the application of existing policies were not changed during the year ended December 31, 2025. We noted no
transactions entered into by the governmental unit during the year for which there is a lack of authoritative guidance or
consensus. All significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on
accounting estimates are particularly sensitive because of their significance to the financial statements and because of
the possibility that future events affecting them may differ significantly from those expected. The most sensitive
estimates for the financial statements are noted below.
calculated using the straight-line method.
received during the lease term.
We evaluated the key factors and assumptions used to develop depreciation in determining that it is reasonable in
relation to the financial statements taken as a whole. The disclosures in the financial statements are neutral, consistent,
and clear. Certain financial statement disclosures are particularly sensitive because of their significance to financial
statement users.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
5 Page 19 of 61
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than
those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected
all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by
whole.
We also assisted in preparing a number of year-
records at year end to the appropriate ending balances.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a financial accounting,
reporting or auditing matter, whether or not resolved to our satisfaction that could be significant to the financial
statements or the audi
audit.
Management Representations
We have requested certain representations from management that are included in the management representation letter
dated June 17, 2026.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters,
principle to the government
expressed on those statements, our professional standards require the consulting accountant to check with us to
determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other
accountants.
Other Matters
Analysis) is information that supplements the basic financial statements. Our procedures consisted of inquiries of
management regarding the methods of preparing the information and comparing the information for consistency with
audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance
on the RSI.
We were not engaged to report on the introductory section, which accompanies the financial statements but is not RSI.
We did not audit or perform other procedures on this other information, and we do not express an opinion or provide any
assurance on it.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with
course of our professional relationship and our responses were not a condition of our retention.
6 Page 20 of 61
Future Accounting Standard Changes
The following Governmental Accounting Standards Board (GASB) Statements have been issued and may have an impact
on future JPWB financial statements:
GASB Statement No. 103 Financial Reporting Model Improvements Effective: 12/31/2026
GASB Statement No. 104 Disclosure of Certain Capital Assets Effective: 12/31/2026
Further information on upcoming GASB pronouncements.
* * * *
Restriction on Use
This communication is intended solely for the information and use of the Board of Commissioners, management and the
Minnesota Office of the State Auditor and is not intended to be and should not be used by anyone other than these
specified parties.
The comments and recommendation in this report are purely constructive in nature, and should be read in this context.
Our audit would not necessarily disclose all weaknesses in the system because it was based on selected tests of the
accounting records and related data.
If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your
convenience. We wish to thank you for the continued opportunity to be of service, and for the courtesy and cooperation
extended to us by your staff.
Abdo
Minneapolis, Minnesota
June 17, 2026
7 Page 21 of 61
ANNUAL FINANCIAL REPORT
JOINT POWERS WATER BOARD OF ALBERTVILLE, HANOVER AND ST. MICHAEL
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2025
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Joint Powers Water Board of
Albertville, Hanover and St. Michael
Albertville, Minnesota
Annual Financial Report
Table of Contents
For the Year Ended December 31, 2025
Page No.
Introductory Section
Board of Commissioners and Administration 7
Financial Section
11
15
Financial Statements
Statement of Net Position 20
Statement of Revenues, Expenses and Changes in Net Position 21
Statement of Cash Flows 22
Notes to the Financial Statements 23
Other Required Report
Independent
on Minnesota Legal Compliance
Schedule of Finding and Response
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INTRODUCTORY SECTION
JOINT POWERS WATER BOARD OF
ALBERTVILLE, HANOVER AND ST. MICHAEL
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2025
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Joint Powers Water Board of
Albertville, Hanover and St. Michael
Albertville, Minnesota
Board of Commissioners and Administration
For the Year Ended December 31, 2025
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FINANCIAL SECTION
JOINT POWERS WATER BOARD OF
ALBERTVILLE, HANOVER AND ST. MICHAEL
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2025
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Board of Commissioners
Joint Powers Water Board of
Albertville, Hanover and St. Michael
Albertville, Minnesota
Opinion
We have audited the accompanying financial statements of the Joint Powers Water Board of Albertville, Hanover and St.
Michael (the JPWB), Albertville, Minnesota, as of and for the year ended December 31, 2025, and the related notes to the
financial statements, which collectively comprise the JPWB
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial
position of the Joint Powers Water Board of Albertville, Hanover and St. Michael (the JPWB), Albertville, Minnesota as of
December 31, 2025, and the respective changes in financial position and cash flows for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
the Financial Statements section of our report. We are required to be independent of the JPWB and to meet our other
ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America, and for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
twelve months beyond the financial statement date, including any currently known information that may raise substantial
doubt shortly thereafter.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an
audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a substantial likelihood that, individually or in aggregate, they would influence the judgment
made by a reasonable user based on the financial statements.
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In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
ly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
We are required to communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the
audit.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Analysis starting on page 15 be presented to supplement the basic financial statements. Such information, although not a
part of the basic financial statements, is required by the Governmental Accounting Standards Board which considers it to
be an essential part of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for consistency with
ledge we obtained during our
audit of the basic financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the
the basic financial statements do not cover the other information, and we do not express an opinion or any form of
assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the basic financial statements or the
other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an
uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Abdo
Minneapolis, Minnesota
June 17, 2026
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14 Page 35 of 61
This section of the Joint Powers Water Board of Albertville, Hanover and St. Michael (the JPWB), Albertville, Minnesota
December 31, 2025. Please read it in conjunction with the financial statements that follow this section.
Overview of the Financial Statements
This annual report consists of three parts:
Supplemental Information. The financial statements also include notes that explain in more detail some of the
information in the financial statements.
Required Financial Statements
The financial statements of the JPWB report information about the JPWB using accounting methods similar to those
used by private sector companies. These statements offer short- and long-term financial information about its activities.
The Statements of Net Position , liabilities, and deferred inflows of resources and
creditors (liabilities). It also provides the basis for computing rate of return, evaluating the capital structure of the JPWB
and assessing the liquidity and financial flexibility of the JPWB. All current year revenues and expenses are accounted for
in the Statements of Revenues, Expenses and Changes in Net Position. This statement measures the success of
operations over the past year and can be used to determine whether the JPWB has successfully recovered all its costs
through its user fees and other charges, profitability and creditworthiness. The final required financial statement is the
Statements of Cash Flows.
receipts and cash payments during the reporting period. The statement reports cash receipts, cash payments, and net
changes in cash resulting from operations, investing, and financing activities and provides answers to where cash came
from, what cash was used for, and what the change in the cash balance amounted to during the reporting period.
Financial Analysis of the JPWB
Our analysis of the JPWB begins on page 20 in the financial section. One of the most important questions asked about
etter or worse off as a resu The Statements of
Net Position and the Statement of Revenues, Expenses and Changes in Net Position
activities in a way that will help answer this question. These two statements report on the net position of the JPWB and
changes in total net position. net position as one way to measure financial health or financial
position. net position are one indicator of whether its financial health is
improving or deteriorating. However, consideration should be given to other non-financial factors such as changes in
economic conditions, population growth, zoning restrictions, and new or changed government legislation.
15 Page 36 of 61
Net Position
s of Net Position is presented in Table A-1.
TABLE A-1
Condensed Statements of Net Position
Water Rates
The JPWB bills customers a base charge as well as a usage charge. Usage charges are intended to cover the cost of
providing treated water to the customers. The base charge is intended to cover the monthly costs associated with reading
meters and generating the monthly bills regardless of usage for each customer. In addition, this base fee covers the
depreciation of related equipment for future replacement. Without these base charges, the amounts from usage charges
would not be able to cover the needed repairs and maintenance, and the system would eventually deteriorate.
16 Page 37 of 61
Statements of Revenues, Expenses and Changes in Net Position
While the Statements of Net Position show the change in financial position of net position, the Statements of Revenues,
Expenses and Changes in Net Position provides answers as to the nature and source of these changes. A closer
examination of the individual categories affecting the source of changes in net position is discussed below:
TABLE A-2
Condensed Statements of Revenues,
Expenses and Changes in Net Position
The increase in revenues resulted directly from an increase in customer water sales from the prior year due to
weather conditions and an increase in customers receiving service.
Expenses increased $349,715 during the year mainly due to the increase in contract maintenance costs, engineer
fees, and depreciation expense.
17 Page 38 of 61
Capital Assets
2025, is described below. This investment in capital assets
includes land, buildings, infrastructure, machinery,
can be found in Note 2B starting on page 29 of this report.
Currently Known Facts, Decisions, or Conditions
The Joint Powers Water Board (JPWB) continues to demonstrate a strong organizational framework built upon regional
cooperation, prudent fiscal management, and long-term strategic planning. Since its establishment in 1978 as a
Minnesota Joint Powers Authority, the Board has remained committed to providing reliable, high-quality water service to
the Cities of Hanover, St. Michael, and Albertville while responsibly managing the resources entrusted to it.
The communities served by JPWB continue to experience healthy growth, supported by strong local housing markets and
several ongoing residential developments. This sustained growth increases demand on the regional water system and
reinforces the importance of maintaining a forward-looking approach to infrastructure planning and financial stewardship.
Recognizing these evolving needs, JPWB completed and approved a formal Capital Improvement Plan in 2023. The plan
identifies significant infrastructure investments necessary to maintain system reliability, support future development, and
ensure the continued delivery of safe and dependable water service. These planned improvements position the
organization to meet both current and future service expectations.
Complementing the Capital Improvement Plan is the Board's annually updated long-range financial planning model.
Together, these planning tools provide Commissioners with accurate, timely, and comprehensive information to support
informed decision-making. The use of formal planning processes allows the Board to evaluate alternatives, prioritize
projects, assess financial impacts, and align operational objectives with long-term system needs.
In conjunction with these efforts, JPWB completed a formal rate analysis to evaluate the financial requirements
associated with future operations and capital improvements. Based on the findings of this analysis, the Board determined
that phased rate adjustments are necessary to address increasing operating costs, fund critical infrastructure
investments, and preserve the long-term financial sustainability of the utility. These decisions reflect the Board's
commitment to balancing affordability with its responsibility to maintain a resilient and reliable water system.
Contacting the JPWB Financial Manager
This financial report is designed to provide our citizens, customers, investors, and creditors with a general overview of the
the information provided in this report or requests for additional financial information should be addressed to John
Seifert, Veolia Water Project Manager, 11100 50th Street North East, Albertville, MN 55301.
18 Page 39 of 61
FINANCIAL STATEMENTS
JOINT POWERS WATER BOARD OF
ALBERTVILLE, HANOVER AND ST. MICHAEL
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2025
19 Page 40 of 61
Joint Powers Water Board of
Albertville, Hanover and St. Michael
Albertville, Minnesota
Statement of Net Position
December 31, 2025
Assets
Current Assets
Cash and cash equivalents 2,643,082$
Investments 21,172,341
Receivables
Interest 38,941
Accounts receivable 853,083
Special assessments 43,727
Leases 110,409
Due from other governments 135,891
Prepaid items 106,455
Total Current Assets 25,103,929
Noncurrent Assets
Connection charges 165,127
Lease receivable 878,553
Capital assets
Land 904,232
Construction in progress 1,047
Buildings 4,771,442
Infrastructure 24,742,706
Machinery and equipment 422,644
Total Capital Assets, Cost 30,842,071
Less Accumulated Depreciation (15,742,907)
Total Capital Assets, Net 15,099,164
Total Noncurrent Assets 16,142,844
Total Assets 41,246,773
Liabilities
Current Liabilities
Accounts payable 620,163
Due to other governments 986,971
Customer deposits payable 18,750
Total Liabilities 1,625,884
Deferred Inflows of Resources
Deferred leases resources 956,712
Net Position
Investment in capital assets 15,099,164
Unrestricted 23,565,013
Total Net Position 38,664,177$
The notes to the financial statements are an integral part of this statement.
20 Page 41 of 61
Joint Powers Water Board of
Albertville, Hanover and St. Michael
Albertville, Minnesota
Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended December 31, 2025
Operating Revenues
Water sales 3,387,408$
Antenna lease 136,723
Total Operating Revenues 3,524,131
Operating Expenses
Contract maintenance 1,197,745
Depreciation expense 932,828
Engineer fees 227,325
Insurance 30,240
Professional services 24,237
Utilities 276,202
Repairs and maintenance 121,501
Miscellaneous expenses 74,916
Total Operating Expenses 2,884,994
Operating Income 639,137
Nonoperating Revenues (Expenses)
Interest income 890,760
Miscellaneous 7,413
Total Nonoperating Revenues (Expenses)898,173
Income before Contributions and Grants 1,537,310
Capital Contributions - Connection fees 1,251,899
Change in Net Position 2,789,209
Net Position, January 1 35,874,968
Net Position, December 31 38,664,177$
The notes to the financial statements are an integral part of this statement.
21 Page 42 of 61
Joint Powers Water Board of
Albertville, Hanover and St. Michael
Albertville, Minnesota
Statement of Cash Flows
For the Year Ended December 31, 2025
Cash Flows from Operating Activities
Receipts from customers and users 3,334,430$
Other receipts 110,759
Payments to suppliers (1,864,019)
Net Cash Provided by Operating Activities 1,581,170
Cash Flows from Capital and Related Financing Activities
Acquisition of capital assets (202,196)
Connection fees received 1,251,899
Net Cash Provided (Used) by Capital and Related Financing Activities 1,049,703
Cash Flows from Investing Activities
Sale (purchase) of investments, net (3,077,546)
Interest on investments 526,130
Net Cash Used by Investing Activities (2,551,416)
Net Increase (Decrease) in Cash and Cash Equivalents 79,457
Cash and Cash Equivalents, January 1 2,563,625
Cash and Cash Equivalents, December 31 2,643,082$
Reconciliation of Operating Income
to Net Cash Provided by Operating Activities
Operating income 639,137$
Adjustments to reconcile operating income
to net cash provided by operating activities
Other revenue 7,413
Depreciation 932,828
(Increase) decrease in assets
Accounts receivable 4,718
Due from other governments (34,533)
Special assessments receivable (20,614)
Lease receivable 99,632
Increase (decrease) in liabilities/deferred inflows of resources
Accounts payable 10,194
Due to other governments 77,953
Deferred lease resources (133,009)
Customer deposits payable (2,549)
Net Cash Provided by Operating Activities 1,581,170$
Noncash Capital and Related Financing Activities
Acquisition of capital assets on account 552,545$
Change in market value on investments 364,436$
The notes to the financial statements are an integral part of this statement.
22 Page 43 of 61
Joint Powers Water Board of
Albertville, Hanover and St. Michael
Albertville, Minnesota
Notes to the Financial Statements
December 31, 2025
Note 1: Summary of Significant Accounting Policies
A. Nature of Business and Reporting Entity
The Joint Powers Water Board of Albertville, Hanover and St. Michael (the JPWB), Albertville, Minnesota was established
under a joint powers agreement between the Cities of Albertville, Hanover, and St. Michael to provide water service to the
local area. The JPWB operates as an enterprise and provides water service to the general public, with the majority of its
costs being paid by various fees and charges to users of the water system. The JPWB consists of a six-member Board of
Commissioners (the Board). Two individuals, the Mayor and another City Council member from each City, are appointed
by their respective City Council to serve on the Board of Commissioners. The JPWB does not have any component units.
Beginning in 1999, the JPWB modified its agreement with the members. The charges billed and collected for water supply
will remain with the JPWB, while the charges for distribution will be billed by the JPWB but the collections are owned by
each member city and will be remitted to them upon collection.
B. Measurement Focus
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenue and expenses
principal ongoing operations. The principal operating revenue of the JPWB enterprise fund is charges to customers for
sales and services. The JPWB also recognizes as operating revenue the portion of tap fees intended to recover the cost
of connecting new customers to the system. Operating expenses for enterprise funds and internal service funds include
the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenue and expenses not
meeting this definition are reported as nonoperating revenue and expenses.
The JPWB has the following fund type:
Proprietary fund. The JPWB activities are recorded in a proprietary fund and are accounted for on the flow of
economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are
recorded when earned and expenses are recorded at the time liabilities are incurred. The JPWB has only one fund as
listed below:
The Water enterprise fund accounts for those operations that are financed and operated in a manner similar to private
business or where the JPWB has decided that the determination of revenues earned, costs incurred and/or net
income is necessary for management accountability.
Non-exchange transactions, in which the JPWB receives value without directly giving equal value in return, include grants,
entitlements, and donations. On an accrual basis, revenue from grants, entitlements and donations is recognized in the
year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which
specify the year when the resources are required to be used or the year when use is first permitted, matching
requirements, in which the JPWB must provide local resources to be used for a specified purpose, and expenditure
requirements, in which the resources are provided to the JPWB on a reimbursement basis.
23 Page 44 of 61
Joint Powers Water Board of
Albertville, Hanover and St. Michael
Albertville, Minnesota
Notes to the Financial Statements
December 31, 2025
Note 1: Summary of Significant Accounting Policies (Continued)
C. Assets, Liabilities, Deferred Inflows of Resources, and Net Position
Cash and Cash Equivalents
The JPW -term investments
with original maturities of three months or less from the date of acquisition.
government-wide cash and temporary investments pool is considered to be cash and cash equivalents for purposes of
the statements of cash flows.
The JPWB may also invest idle funds as authorized by Minnesota statutes, as follows:
1. Direct obligations or obligations guaranteed by the United States or its agencies.
2. Shares of investment companies registered under the Federal Investment Company Act of 1940 and received the
highest credit rating, rated in one of the two highest rating categories by a statistical rating agency, and have a
final maturity of thirteen months or less.
3.
4.
5. Obligation of a school district with an original maturity not exceeding 13 months and (i) rated in the highest
category by a national bond rating service or (ii) enrolled in the credit enhancement program pursuant to statute
section 126C.55.
6.
7. Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality
category by at least two nationally recognized rating agencies and maturing in 270 days or less.
8. Repurchase or reverse repurchase agreements and securities lending agreements with financial institutions
with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal
Reserve Bank of New York, or certain Minnesota securities broker-dealers.
9. Guaranteed investment contracts (GIC's) issued or guaranteed by a United States commercial bank, a domestic
branch of a foreign bank, a United States insurance company, or its Canadian subsidiary, whose similar debt
obligations were rated in one of the top two rating categories by a nationally recognized rating agency.
Broker money market funds operate in accordance with appropriate state laws and regulations. The reported value of the
pool is the same as the fair value of the shares.
The JPWB categorizes its fair value measurements within the fair value hierarchy established by generally accepted
accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1
inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level
28
and are valued using quoted market prices (Level 1 inputs) and brokered certificates of deposit using a matrix pricing
model (Level 2).
24 Page 45 of 61
Joint Powers Water Board of
Albertville, Hanover and St. Michael
Albertville, Minnesota
Notes to the Financial Statements
December 31, 2025
Note 1: Summary of Significant Accounting Policies (Continued)
The JPWB has the following recurring fair value measurements as of December 31, 2025:
US Government Securities of $1,546,118 are valued using quoted market prices (Level 1 inputs)
Brokered certificates of deposit of $17,633,863 are valued using a matrix pricing model (Level 2 inputs)
The Minnesota Municipal Money Market Fund is regulated by Minnesota statutes and the Board of Directors of the
League of Minnesota Cities and is an external investment pool not registered with the Securities Exchange Commission
(SEC) that follows the regulator
this pool is valued at an amortized cost, which approximates fair value. There are no restrictions or limitations on
withdrawals from the 4M Liquid Asset Fund. Investments in the 4M Plus must be deposited for a minimum of 14
calendar days. Withdrawals prior to the 14-day restriction period will be subject to a penalty equal to seven days interest
on the amount withdrawn. Seven days' notice of redemption is required for withdrawals of investments in the 4M Term
Series withdrawn prior to the maturity date of that series. A penalty could be assessed as necessary to recoup the Series
for any charges, losses, and other costs attributable to the early redemption. Financial statements of the 4M Fund can be
obtained by contacting League of Minnesota Cities Finance Department at 145 University Avenue West, St. Paul,
Minnesota, 55103-2044.
Accounts Receivable
Accounts receivable includes amounts billed for services provided before year end. The JPWB annually certifies
delinquent water accounts to the County for collection in the following year. Therefore, there has been no allowance for
doubtful accounts established.
Special Assessments
to the County for collection. No substantial losses from present
receivable balances are anticipated.
Due to Other Governments
JPWB does the billing of water and sewer for the cities of Hanover and St. Michael. The amounts billed are remitted to the
cities as payments are received from the residents. Amounts not received are removed from the accounting records and
certified to the County by each of the cities.
Lease Receivable
Lease receivable is measured at the present value of lease payments expected to be received during the lease term. A
deferred inflow of resources is recorded for the lease. The deferred inflow of resources is recorded at the initiation of the
lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of resources is amortized on
a straight-line basis over the term of the lease.
Capital Assets
Property, plant and equipment are recorded at cost. Capital assets are defined as assets with an estimated useful life
more than one year. Property, plant and equipment donated are recorded at their acquisition value at the date of donation.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
25 Page 46 of 61
Joint Powers Water Board of
Albertville, Hanover and St. Michael
Albertville, Minnesota
Notes to the Financial Statements
December 31, 2025
Note 1: Summary of Significant Accounting Policies (Continued)
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend as
not capitalized. Property, plant and equipment are depreciated using the straight-line method over the following estimated
useful lives:
Deferred Inflows of Resources
In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of
resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net
assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
The JPWB has one item that qualifies for reporting in this category. The item, deferred lease resources, is reported only in
the statement of net position and results from future lease receipts.
Net Position
Net position represents the difference between assets, deferred outflow of resources and liabilities. Net position is
displayed in three components:
a. Investment in capital assets - Consists of capital assets, net of accumulated depreciation reduced by any
outstanding debt attributable to acquired capital assets.
b. Restricted net position - Consists of net position balances restricted when there are limitations imposed on their
use through external restrictions imposed by creditors, grantors, laws, or regulations of other governments.
c. Unrestricted net position - All other net position balances
investment in capital assets
is to use restricted resources
first, then unrestricted resources as they are needed.
26 Page 47 of 61
Joint Powers Water Board of
Albertville, Hanover and St. Michael
Albertville, Minnesota
Notes to the Financial Statements
December 31, 2025
Note 2: Detailed Notes on All Funds
A. Deposits and Investments
Deposits
not be returned or the JPWB will not be able to recover collateral securities in the possession of an outside party. In
accordance with Minnesota statutes and as authorized by the Board of Commissioners, the JPWB maintains deposits at
those depository banks which are members of the Federal Reserve System.
Minnesota statutes require that all deposits be protected by insurance, surety bonds, or collateral. The fair value of
collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds, with the exception of
irrevocable standby letters of credit issued by Federal Home Loan Banks as this type of collateral only requires collateral
pledged equal to 100 percent of the deposits not covered by insurance or bonds.
Authorized collateral in lieu of a corporate surety bond includes:
United States government Treasury bills, Treasury notes, Treasury bonds;
Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation
service available to the government entity;
national bond rating service, or revenue obligation securities of any state or local government with taxing powers
tter by a national bond rating service;
General obligation securities of a local government with taxing powers may be pledged as collateral against
funds deposited by that same local government entity;
Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by
Time deposits that are fully insured by any federal agency.
Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve
Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or
controlled by the financial institution furnishing the collateral. The selection should be approved by the government entity.
The bank and book value of deposits, and amount covered by FDIC insurance and collateral is shown in the chart
below.
Carrying amount of deposits 2,643,082$
Bank balance 2,630,698$
Covered by FDIC (500,000)
Remaining balance collateralized with securities pledged in JPWB's name 2,130,698$
27 Page 48 of 61
Joint Powers Water Board of
Albertville, Hanover and St. Michael
Albertville, Minnesota
Notes to the Financial Statements
December 31, 2025
Note 2: Detailed Notes on All Funds (Continued)
Investments
The broker money market investment pool operates in accordance with appropriate State laws and regulations. The
reported value of the pool is the same as the fair value of the pool share. At December 31, 2025, JPWB had the following
Credit Segmented
Quality/Time
Ratings (1)Distribution (2)Amount Level 1 Level 2 Level 3
Pooled Investments at Amortized Costs
4M Fund N/A N/A 1,275,707$ -$ -$ -$
Broker Money Market Funds N/A N/A 716,653 - - -
Non-pooled Investments at Fair Value
Brokered Certificates of Deposit N/A Less than 1 year 10,282,960 - 10,282,960 -
Brokered Certificates of Deposit N/A 1-5 years 7,350,903 - 7,350,903 -
Government Agency Securities AA+Less than 1 year 1,277,498 1,277,498 - -
Government Agency Securities AA+1-5 years 268,620 268,620 - -
Total Investments 21,172,341$ 1,546,118$ 17,633,863$ -$
Fair Value Measurement Using
(1) Ratings are provided .
(2) Interest rate risk is disclosed using the segmented time distribution method.
N/A Indicates not applicable or available.
A reconciliation of cash and temporary investments as shown on the statements of net position follows:
The investments of the JPWB are subject to the following risks:
Credit Risk. Credit risk is the risk that an issuer or other counterpart to an investment will not fulfill its obligations.
Ratings are provided by various credit rating agencies and where applicable indicate associated credit
risk.
the notes.
Custodial Credit Risk. The custodial credit risk for investments is the risk that, in the event of the failure of the
counterparty to a transaction, a government will not be able to recover the value of investment or collateral
securities that are in the possession of an outside party. It is the policy of the JPWB to require that time deposits
more than FDIC insurable limits be secured by collateral or private insurance to protect public deposits in a single
financial institution if it were to default. Third party safekeeping is required for all collateral.
Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of a
government's investment in a single issuer. In accordance with the JPWB investment policy, investments shall be
diversified to eliminate the risk of loss resulting in concentration in a specific maturity, issuer, or class of
securities.
Interest Rate Risk. The risk that changes in interest rates will adversely affect the fair value of an investment.
28 Page 49 of 61
Joint Powers Water Board of
Albertville, Hanover and St. Michael
Albertville, Minnesota
Notes to the Financial Statements
December 31, 2025
Note 2: Detailed Notes on All Funds (Continued)
B. Capital Assets
Capital asset activity for the year ended December 31, 2025 was as follows:
Total depreciation for the year ended December 31, 2025 totaled $932,828.
29 Page 50 of 61
Joint Powers Water Board of
Albertville, Hanover and St. Michael
Albertville, Minnesota
Notes to the Financial Statements
December 31, 2025
Note 2: Detailed Notes on All Funds (Continued)
C. Lease Receivable
The JPWB has leases for rental of water tower space that allows others to place antennas on the towers. The lease
payments are variable in nature. As of December 31, 2025, is listed by individual lease as
follows:
Note 3: Other Information
Risk Management
The JPWB is exposed to various risks of loss related to torts; theft of damage to or destruction of assets; errors and
omissions; injuries to employees; and natural disasters for which the JPWB carries commercial insurance. The JPWB
obtains insurance through participation in the League of Minnesota Cities Insurance Trust (LMCIT) which is a risk sharing
pool with approximately 800 other governmental units. The JPWB pays an annual premium to LMCIT for its workers
compensation and property and casualty insurance. The LMCIT is self-sustaining through member premiums and will
reinsure for claims above a prescribed dollar amount for each insurance event. Settled claims have not exceeded the
JPWB coverage in any of the past three fiscal years.
Liabilities are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably
estimated. Liabilities, if any, include an amount for claims that have been incurred but are not reported (IBNRs). The JPWB
management is not aware of any incurred but not reported claims.
Note 4: Connection Charges
A water main was installed in 1978 and properties along the main were not assessed at that time. These fees were
recorded with the County on August 1, 2001, but have yet to be certified and are pending property sales. The amount
recorded as receivable at year end December 31, 2025 is $165,127.
30 Page 51 of 61
OTHER REQUIRED REPORT
JOINT POWERS WATER BOARD OF
ALBERTVILLE, HANOVER AND ST. MICHAEL
ALBERTVILLE, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2025
31 Page 52 of 61
INDEPENDENT
ON MINNESOTA LEGAL COMPLIANCE
Board of Commissioners
Joint Powers Water Board of
Albertville, Hanover and St. Michael
Albertville, Minnesota
We have audited, in accordance with auditing standards generally accepted in the United States of America, the financial
statements of the Joint Powers Water Board of Albertville, Hanover and St. Michael (the JPWB), Albertville, Minnesota as
of and for the year ended December 31, 2025, and the related notes to the financial statements, and have issued our
report thereon dated June 17, 2026.
In connection with our audit, nothing came to our attention that caused us to believe that the JPWB failed to comply with
the provisions of the contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims
and disbursements, and miscellaneous provisions sections of the Minnesota Legal Compliance Audit Guide for Cities,
promulgated by the State Auditor pursuant to Minn. Stat. § 6.65, insofar as they relate to accounting matters with the
exception of finding 2025-001 described below in the schedule of finding and response. However, our audit was not
directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional
referenced provisions, insofar as they relate to accounting matters.
response was not subject to the auditing procedures applied in the audit of the financial statements and, accordingly, we
express no opinion on it.
This report is intended solely for the information and of use those charged with governance and management of JPWB
and the State Auditor and is not intended to be and should not be used by anyone other than these specified parties.
Abdo
Minneapolis, Minnesota
June 17, 2026
32 Page 53 of 61
Joint Powers Water Board of
Albertville, Hanover and St. Michael
Albertville, Minnesota
Schedule of Finding and Response
For the Year Ended December 31, 2025
Finding Description
2025-001 Time Period for Payment
Condition: Auditing for legal compliance requires a review of the JPWB
indicated three instances of non-compliance of 35 days out of our sample size of twenty-five.
Criteria: Minnesota statute section 471.425 requires that the JPWB pay bills within 35 days from receipt.
If the invoice is not paid within 35 days, interest at 1.5 percent per month is to be added to the
amount due.
Cause: This was due to invoices submitted and received after the internal cutoff date.
Effect: The JPWB is out of compliance with this statute.
Recommendation: We recommend that the JPWB develop policies and procedures related to the accounts payable
cycle. These policies and procedures should include payment terms that are outlined within State
statutes. We also recommend JPWB continue utilizing a date stamp to document when all
invoices are received.
Management Response:
The JPWB agrees with the finding citing turnover during the year resulting in invoices being paid outside of the legal
compliance requirements noted above.
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