Council accepts FY2024 audit; auditors give unmodified opinion and staff presents investment and tax updates

The City Council accepted the fiscal year 2024 financial audit July 15 after auditors from Brooks Watson and Company delivered an unmodified (clean) opinion and a management letter with nonmaterial recommendations.

Louis Breedlove, senior audit manager at Brooks Watson, told the council the audit followed generally accepted auditing standards and the firm issued an unmodified opinion. “The city did receive an unmodified opinion,” Breedlove said, adding that audit adjustments identified were corrected by management and that recommendations in the internal-control letter were not material deficiencies.

Key audit highlights presented: the general fund showed an increase of about $110,000 year‑over‑year; capital projects funds drew down approximately $2,500,000 as planned; the general fund finished the year with an unrestricted reserve near 40 percent (about 146 days of operating coverage); and the city reported a $424,000 positive net budget variance driven by $436,000 more in revenues than expected and modest expenditure overages. The city’s water and sewer (proprietary) fund had operating income of about $343,000 and a small overall year‑end increase.

Finance update and investments: staff reported the quarterly investment position and a plan to invest bond proceeds and a portion of reserves in external investment pools (including membership in a pool called Techstar) to improve yield while managing arbitrage rules. Staff said investments showed $0 in the June report only because funds had been moved back into the clearing account and that an August agenda item will seek approval to participate in an investment pool.

Tax and sales tax receipts: staff said property-tax collections were about 98 percent of budgeted property tax revenue and delinquent collections were about 27 percent of delinquent balances to date. Sales tax receipts were positive in June (about $120,000), with increases in retail, food services, and construction categories; staff said the city was on track to meet its budgeted sales tax forecast.

Council action: after the presentation and brief comments commending staff, a council motion to accept the FY2024 audit passed by voice vote.