Santa Fe Springs posts $16 million year‑end increase; operating reserves rise to $50 million, auditors say

Finance staff presented the city’s audited financial statements for fiscal year 2023–24 and told the council the city closed the year with a $16 million net increase in fund balance and an operating reserve that grew to about $50 million.

The audit was conducted by CliftonLarsonAllen LLP (CLA), the city reported. Finance staff said CLA completed interim fieldwork in July, returned in October to gather evidence and finalized the audit in March. Staff described the audit communication as clean, with no formal findings presented to the council that evening.

Why it matters: The report summarizes revenues and expenditures for the fiscal year, the city’s reserve posture and long-term liabilities that include an actuarially determined pension obligation. The council will use the audit results to guide budget decisions in the upcoming budget workshops.

Key figures summarized by staff: general‑fund revenues were higher than budgeted, expenditures were lower than projected, producing the $16 million increase in fund balance. Sales taxes account for more than half of general‑fund revenue; building and construction and county pool allocations were also noted contributors. Staff reported an estimated $153 million in long‑term pension liabilities on the balance sheet.

Water enterprise notes: Finance staff said the water fund’s reported operating surplus included roughly $3.9–4.0 million in outstanding receivables tied to prior billing and a system outage; staff cautioned the accounting treatment records revenue in FY 23–24 even though some cash collections occurred later and said the receivables will appear in the current fiscal year cash flow as collections occur.

Next steps: Staff outlined three budget workshops (April 22 at 5:30 p.m.; May 10 at 9 a.m.; May 22 at 5:30 p.m.) and asked the public to participate. Council formally accepted the audit and financial report by motion and vote that evening.