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Hutto receives unmodified audit; council adopts midyear budget amendments
Summary
Auditors issued an unmodified opinion on the City of Hutto's fiscal 2024 financial report, citing improved reserves and a certificate of achievement from GFOA. Council then approved ordinance O-2025-013 to amend the FY2025 budget with changes to revenues and expenditures across several funds.
The city's independent auditor, John Watson of Brooks Watson & Company, presented the annual comprehensive financial report for the year ended Sept. 30, 2024, to the Hutto City Council on March 27. Watson said the firm issued an unmodified audit opinion, the highest assurance level, and highlighted a certificate of achievement for excellence in financial reporting from the Government Finance Officers Association.
Finance Director Alberta Barrett told council total assets exceeded liabilities by about $244 million and the city posted a net position increase of about $9.2 million for the year. The city's combined governmental fund balance finished near $107 million, and the unassigned general fund balance rose to about $7.8 million, roughly 27% of annual general-fund expenditures (about three months of reserves).
Following the audit presentation, the council considered an ordinance (O-2025-013) to amend the FY2025 budget. Finance Director Barrett explained key changes: property tax revenue projections were increased by roughly $750,000 based on collections; sales tax receipts were reduced after lower-than-expected monthly receipts; interest revenue adjustments reflected later implementation of a Wells Fargo sweep account; and several departmental salary and operating adjustments were made to reflect vacancies, grant awards and program reclassifications. In the utility fund the city updated revenues and expenses to reflect pending implementation of a new credit-card processor and updated connection fees.
Council voted 6-0 to adopt O-2025-013 after councilmembers thanked staff for timely reporting and for aligning audit and budget schedules. Barrett noted the amendments left the general fund with a positive ending fund-balance variance and that the utility fund still exceeds its reserve requirement after the adjustments.
Ending: The council accepted the auditor's report and approved the ordinance to amend the fiscal year 2025 budget; staff will continue to monitor revenue trends and return with any further midyear adjustments as needed.
