Audit firm AMGL reports positive financial assessment for local government

The Seward City Council meeting on April 1, 2025, focused primarily on the presentation of the city’s recent audit results and financial benchmarking. Tracy, the auditor, reported that the audit process was efficient and resulted in an unmodified opinion, indicating that the financial statements fairly represent the city’s financial position.

Tracy highlighted several key financial metrics during the presentation. The city’s valuation increased to $671 million, with a per capita valuation of $87,800, surpassing the average of $82,000. However, the city’s unrestricted governmental funds were slightly below recommended levels due to significant investments in capital assets.

Sales tax remains the primary revenue source, although it saw a decrease from the previous year. Property taxes have increased in line with rising valuations, while state allocations are influenced by the city’s levy rate and valuation per capita. Tracy noted that the city’s governmental debt is low, at just 0.63% of valuation, well below the recommended threshold of 5%.

The council discussed the importance of maintaining a healthy unassigned fund balance, which currently stands at 40% of general fund expenditures, exceeding the recommended 30%. The city also has nearly 12 months of cash reserves, indicating strong financial health.

Tracy emphasized the need for ongoing financial diligence, suggesting that the city should consider exploring other auditing firms after their current contract with AMGL concludes. This would ensure fresh perspectives on the city’s financial practices.

The meeting concluded with no further questions from council members, and the audit was deemed a success, with plans to submit the findings to state auditors. The council expressed appreciation for the finance team’s efforts in facilitating a smooth audit process.