City auditors give Belton a clean opinion on fiscal 2024 financial statements; council hears highlights

Auditors from JRBT and Christy Davis presented the City of Belton’s Annual Comprehensive Financial Report for the fiscal year that ended Sept. 30, 2024, and reported a clean audit opinion to the council on Feb. 11.

Why this matters: A clean audit opinion indicates the auditors found the financial statements reliable and did not identify material weaknesses in internal control for the year under audit. The presentation also detailed fund balances, capital contributions and spending of federal ARPA funds.

Audit findings and compliance: Auditor Christy Davis said auditors conducted procedures over the city’s financial statements, federal awards testing (the transcript identifies the Coronavirus State and Local Fiscal Recovery Fund), and controls; she reported no material weaknesses or significant deficiencies and no findings for compliance with the Public Funds Investment Act or state competitive‑bidding requirements for the year under audit.

Key financial highlights presented by city finance staff: Citywide net position increased by about $10.8 million to roughly $118 million, driven largely by grants and developer capital contributions. The general fund reported a net increase (net income) of $258,972 for the year and an unassigned reserve equal to approximately 37.9% of budgeted expenditures, above the city’s 30% reserve policy. Hotel occupancy tax receipts rose about 20% year over year, and ARPA funds of roughly $2 million were spent on street maintenance, Mount Zion restoration, utility bill assistance and small business grants; the city reported obligations met for the ARPA program and remaining allocated funds to be spent by the federal deadline.

Water, sewer and drainage: The Water and Sewer Fund reported operating challenges (operating revenues down 2% and expenses up 5%), with a net income partly driven by about $4 million of developer capital contributions. The drainage fund reported its fourth straight operating loss, primarily driven by depreciation on donated capital infrastructure; staff flagged the drainage fund for future review of fee structure and sustainability.

Council comments and next steps: Councilmembers and staff praised audit staff for the work and noted that reserve policy compliance and conservative budgeting supported the city’s strong financial posture. No formal action was required on the report; staff will continue budget planning and follow up on drainage‑fund sustainability in future budget cycles.