Fruita council approves 2024 financial statements, accepts auditor—s report

The Fruita City Council on a 5-0 vote approved the city—s 2024 financial statements and accepted the auditor—s report, following a staff presentation that characterized the city—s financial position as strong and stable.

City staff told the council the city—s total net position for 2024 is $135,200,000 and that the net position rose $9,700,000 from 2023. The presentation noted the 2023 figures were restated to reflect implementation of GASB 101 on compensated absences. Staff said 70% of net position is net investment in capital assets, 7% is restricted by outside requirements such as TABOR emergency reserves and development impact fees, and 23% is unrestricted; unrestricted assets were reported at about $31,300,000.

The nut graf: the council approved the statements after questions about internal controls and processes, and staff described follow-up steps on several items flagged in the management letter, including a purchasing-card policy, sole-source procurement worksheets and filing of budget amendments with the Colorado Department of Local Affairs (DOLA).

City staff reported general-fund final budgeted revenues of $12.8 million and actual revenues of $13.9 million, and final-budgeted general-fund expenses of $12.7 million with actual spending of $11.6 million, producing positive variances. Officials said much of the apparent savings in transfers out (budgeted $9.7 million, actual $1.6 million) was timing-related and that those capital-transfer funds were reappropriated and rolled into 2025 to cover delayed projects.

During council questions, members pressed staff about how Fruita compares to similarly sized communities, to which the auditor and staff said internal fund-balance metrics and reserve policies indicate Fruita is comparatively well-positioned and less dependent on federal funding for core infrastructure than some peers. Councilors also asked about the status of a formal purchasing-card policy, procurement controls for sole sourcing and the process to submit budget amendments to DOLA; staff said a p-card policy is in progress and that the assistant city manager will upload approved supplementals to DOLA after council adoption.

A resident, Daniel Lemery of 930 Squire Court, told the council, "This is short and sweet. Really nice to see that we're financially stable, and my compliments." City staff credited interim Finance Director Krista Yamashida and the finance team for meeting the extended filing deadline.

Ending: Councilor polling recorded votes as Yes from Councilors Williams, Hansi, Purser, Quigley and Miller; motion passed 5-0. Staff said they will use lessons from the audit and the management letter to refine internal policies and will present updates in the 2025 budget process.