City audit returns clean opinion; long‑range plan projects modest drawdown of unassigned general fund balance

City finance staff and the city’s independent auditors on Monday presented the Annual Comprehensive Financial Report (ACFR) for fiscal 2024 and an updated long‑range financial plan, reporting a clean audit opinion and outlining revenue and expenditure trends through the late 2020s.

Deputy Chief Financial Officer Carlisha Jenkins and finance staff summarized the ACFR. Auditor Hermes Garzon of CBIZ told the council the audit produced an unmodified (clean) opinion; the auditors reported no material weaknesses or compliance findings and performed a single audit of federal and state awards that produced no reportable noncompliance.

Key fiscal figures

- Total government‑wide assets ended the fiscal year at about $1.5 billion; total liabilities were roughly $469 million. - The city’s net position increased by about $24.4 million over 2023. - Property tax revenue for governmental activities totaled about $122.7 million; "other taxes" were about $86 million. - The water and sewer enterprise reported roughly $84.2 million in revenues with an ending unrestricted net position of about $122 million. - The general fund closed fiscal 2024 with approximately $95.96 million in total fund balance and an unassigned fund balance in line with policy targets when combined with emergency reserves.

Auditor findings and management recommendations

Garzon said the auditors issued a clean opinion on the financial statements and found no internal control deficiencies rising to the level of a material weakness. The audit included a single audit because the city expended federally and state‑funded program awards above the audit threshold; auditors selected a federal highway planning award and a state water quality restoration project for testing and found no reportable compliance deficiencies.

The auditors’ management letter included a recommendation — not a formal finding — that the city document its Other Post‑Employment Benefits (OPEB) plan formally in a written policy. Finance staff said they will prepare documentation to address that recommendation.

Budget performance and reserves

Staff reviewed the city’s budget‑to‑actual results: revenues exceeded budget by about $2.4 million and expenditures were underspent by roughly $15.5 million, producing a general fund surplus of about $7.7 million for the fiscal year despite prior year carryovers. The city’s fund balance policy maintains a 10% emergency commitment (disaster reserve) plus assigned amounts for capital and budgeted carryovers.

Long‑range forecast

Budget Director Sherry McGuire presented the 2025 long‑range financial plan (an update of the 20th plan) that forecasts general fund, transportation, water/sewer, sanitation and stormwater through fiscal 2030. Assumptions include: a multi‑year assessed‑value growth assumption (5.2% five‑year average for property tax base), modest growth in utility and franchise revenues, and personnel cost growth (3% general; 4.9% public safety). The baseline forecast shows revenues and expenditures growing at roughly comparable rates but projects a modest drawdown of unassigned general fund balance over the forecast horizon while maintaining policy reserves for emergencies and capital.

Council questions

Council members asked about assessed‑valuation growth, homestead caps and how those interact with taxable value. Finance staff explained the impact of the 3% cap on homesteaded properties and noted the difference between market value increases and taxable assessed value. McGuire and staff also said the forecast does not yet include potential fiscal impacts tied to a future government campus redevelopment; staff will model those impacts when project options are available.

Ending

Council members thanked the finance team and auditors for producing the ACFR and the long‑range forecast. Auditors confirmed timely submission of the ACFR and that the city remains eligible for the GFOA award for excellence in financial reporting; staff said no material audit issues remain and they will follow up on the OPEB policy documentation recommendation.