Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the City Finance Audit topic
No spam. Unsubscribe anytime.
City audit finds clean opinion; solid-waste fund runs $1.1 million deficit
Summary
Independent auditors gave the City of Washington an unmodified opinion on its 2024 financial statements but council members and staff raised concern about a growing deficit in the solid-waste enterprise fund and potential landfill costs.
The City of Washington received an unmodified (clean) opinion on its fiscal year 2024 financial statements, and auditors highlighted a widening deficit in the solid-waste enterprise fund that left the fund’s unrestricted net position about $4.3 million negative at year-end, council members heard May 5.
The report, presented to the council as the city's Annual Comprehensive Financial Report (ACFR), said the general fund’s total fund balance rose about 3 percent to just over $15 million and remained in compliance with the city's fund balance policy. "Happy to report that we are providing a clean or an unmodified opinion, which is the best that we can give as your auditor," the presenting auditor said.
Why it matters: An unmodified opinion indicates auditors found the city’s financial statements to be fairly presented in all material respects. But the solid-waste fund’s persistent operating deficits and the built-in landfill closure and post-closure liabilities — estimated near $7.4 million — mean the city is subsidizing solid-waste operations and must evaluate whether user charges are adequate.
Auditors reviewed internal control and OMB Uniform Guidance for federal awards and reported no findings rising to the level of significant deficiency or material weakness and no compliance issues for the major federal programs selected for testing. The audit presentation included a five-year trend analysis showing roughly a 3 percent increase in general fund revenues (about $524,000) and a $1.8 million increase in general fund expenditures in 2024 driven mainly by capital outlay.
On enterprise funds, the auditors reported a positive turnaround in the sewer fund — revenues rose to about $4.4 million in 2024 producing an operating income that improved that fund’s unrestricted net position from negative $617,000 to positive $335,000 — and a modest surplus in the water fund. The solid-waste fund, by contrast, ran operating deficits for multiple years and saw its unrestricted net position decline from negative $3.2 million to negative $4.3 million in 2024.
Council members and staff discussed the landfill’s closure and post-closure liability and the future of local solid-waste operations. Staff said the liability is included in the fund’s numbers and noted the solid-waste committee is studying options, including whether the city-owned landfill or a transfer station remains viable. The presentation and follow-up discussion referenced prior work on rate reviews and requests for proposals from haulers; staff said some private haulers told the city they would need three to four times the current volume to make certain operations profitable.
The auditors recommended the council continue periodic evaluations of user charges to ensure enterprise funds cover long-term costs. Council members asked for further workshops on solid waste options, and staff indicated potential future proposals on rates or alternative service models would be brought back to the council for direction or ordinance action.
Ending: The presentation closed with staff offering to follow up; no ordinance or budget amendment was adopted during the workshop. The audit report will move to the regular council agenda for acceptance and any required ordinance actions.
