City auditor issues clean opinion for Leon Valley’s fiscal 2024 financials; council hears fund‑balance details

The city’s external auditor, Debbie Frazier, CPA, told the council Tuesday that after adjustments the City of Leon Valley’s fiscal 2024 financial statements are fairly stated and received a clean opinion with no material findings.

Frazier outlined major figures from the annual comprehensive financial report (ACFR). She said general‑fund revenue for the fiscal year was $12,972,660 compared with a budgeted $13,500,000; total spending was lower than budgeted, producing an ending general‑fund balance of $9,493,669. Of that balance, she reported $2,661,000 as restricted for specific items (parks and recreation commitments, PEG fees, disaster relief, tree mitigation, and economic development), leaving roughly $6,832,000 unassigned before accounting for commitments included in the FY2025 budget.

Frazier noted two significant variances in budgeted spending: fire protection and parks and recreation projects had large unspent appropriations. She recommended councils continue to formalize fund commitments by resolution or manager assignment when budgeted projects are intended to be carried forward.

The auditor also flagged an internal control suggestion tied to a local arrangement with the LIFT fund: if the city again permits the fund to pay principal only, the contract should include express documentation confirming no interest payments. Council members asked clarifying questions about proprietary fund totals, transfers between utilities and the general fund, and the one‑time nature of several capital projects.

Mayor and council thanked finance staff for producing records that required minimal audit journal adjustments; the city manager and finance director previously met with the auditor to review the report.