City of Royalton settles with Kern DeWenter Viere

By Jennie Zeitler, Correspondent

After a number of errors were made in reporting tax increment financing (TIF) district information to the state of Minnesota in 2013, business, financial and technological advisory firm Kern DeWenter Viere (KDV) reached a settlement agreement with the city of Royalton. The settlement resolution was approved by the City Council, Tuesday.

The agreement with KDV releases the firm from any liability. KDV agreed to compensate the city in the amount of $35,000.

KDV had been Royalton’s auditing firm for a number of years, said Mayor Andrea Lauer.

The errors in the 2012 audit process came to light when the city received a notice from the State Auditor’s office regarding incorrect information that had been submitted on TIF districts in the city.

“We had to make a payment of $50,000 to the county because of the error,” Lauer said.

“The county redistributed that to the school district, the city and the county,” said City Clerk Carol Madsen. “Of that amount, about $17,000 came back to the city.”

“The new auditors and City Attorney Toni Wetzel approved the agreement,” said Council Member Ed Zimny.

The city’s new audit firm is CliftonLarsonAllen in Waite Park.

“Having an audit done gives the public a sense of well-being, having an independent party come in to audit the books,” Lauer said. “Our staff does a good job so the auditors have good, clean books to work with.”

“I’m glad it’s over,” said Madsen. “It was an unfortunate incident and I’m glad it’s behind us.”

Royalton City Council Briefs


Other business that came before the Royalton City Council Tuesday included:

•Hearing both of the Fire Department’s pumper trucks failed their tests last week. They will be retested after repairs are made;

•Listening to a report given by Tim and Scarlett Feiler regarding a proposed firing range and the precautions taken putting safety first. The topic will be discussed in more detail at next month’s meeting;

• Approving a conditional use permit for Gary Borash to add a storage building to house equipment for his bait business on 504 N. Evergreen Street;

•Approving one-year animal permits for Theresia Sutton to have three horses and six chickens, Wayne Harrison for three pygmy goats and Nicole Thompson for two rabbits;

•Approving a request to close South Birch Street between East Centre Street and South First Street for the annual Alzheimer’s Ride for the Mind, June 21, from 8 a.m. to midnight;

•Approving a $100 donation to the Tree Board by the American Legion;

•Approving the sign retro-reflectivity evaluation and maintenance policy, a state requirement;

•Tabling discussion of hosting a Royalton Green Fair, possibly in combination with the annual Platte River Day;

• Learning that well number one has been sealed, utilizing a Minnesota Department of Health grant. Plans for the new well number four are waiting for approval so that bids can be requested;

•Approving up to $500 for the city to decorate a Platte River Day float and purchase items to give away; and

• Setting a public hearing date of July 8, at 7:15 p.m. to consider Paul Nordlund’s request to build a larger garage at his home near the Platte River, 408 S. First St.

The next meeting of the Royalton City Council will be Tuesday, July 8, at 7 p.m. in the City Complex.