Oviedo presents strong fiscal year results; auditors issue clean opinion

Oviedo officials presented the city’s annual financial results and independent audit at the April 21 City Council meeting, reporting higher-than-expected investment income and a stronger fund balance than projected.

City finance staff said ad valorem taxes were the largest revenue source at about $19.4 million and that investment income grew sharply from roughly $30,000 a few years ago to about $1.3 million in the most recent fiscal year. That additional investment revenue, staff said, has helped fund capital and one-time expenditures.

The presentation, delivered by city finance staff and followed by the independent auditors from Pervis Gray and Company, highlighted an ending general fund balance of roughly $20.6 million before carry-forwards and planned uses. Staff said carry-forwards and reserved items reduced available fund balance to about $18.5 million, which they described as roughly 42% of general fund expenditures — a “very strong position,” in staff’s words.

City staff also summarized enterprise fund performance. The water and sewer utility collected about $20 million in operating revenues and reported a strong cash position of about $20 million, of which staff said roughly $5.2 million was reserved for ongoing projects and an additional $3 million was committed to carry-forward projects. Stormwater is smaller — roughly $3 million in fee revenue — but staff cautioned stormwater maintenance is high and the city has solicited bids for a loan facility to support needed work. Staff said bid results should be available soon and recommended an item for the May 19 agenda to select a borrowing vehicle.

Matthew Guneau, audit director with Pervis Gray and Company, told council the auditors issued an unmodified (clean) opinion on the city’s financial statements and issued a clean single-audit opinion on federal awards. The auditors reported no internal control findings or compliance issues in the reports presented tonight. Guneau also noted the city reported about $13.7 million in unearned ARPA revenue as of Sept. 30, 2024, and reminded council of GASB accounting updates affecting future reports.

Council members asked questions about salary categorization and the allocation of administrative costs to public works and utilities. Staff and the auditors answered technical questions and directed members to the full annual comprehensive financial report and the “management’s discussion and analysis” section for detailed tables, water utility schedules and supplementary statistics.

City staff recommended and council accepted the financial presentation. No vote was required; the audit and ACFR were presented for information and will be filed as the official record.