Revenue threshold requiring cities to perform annual audits raised.

HF 2083 raises the revenue threshold requiring Minnesota cities to conduct annual financial audits. The bill increases the threshold from $150,000 to $500,000 (adjusted annually for inflation starting in 2025) for cities combining clerk and treasurer offices. Cities with annual revenue below $500,000 will now only need a financial audit once every five years, instead of annually. This change applies to audits performed for fiscal year 2026 and later, effective August 1, 2025.