Taylor council receives unmodified audit, hears $151.7 million net position for FY2024

Taylor City Council on March 20 voted to receive the city comprehensive financial report for the year ended Sept. 30, 2024, after the city received a presentation from its independent auditor.

Michael Brooks of Brooks Watson told the council the firm had issued a clean, unmodified opinion on the city's financial statements and summarized key highlights from the audit report. "We have issued a clean, unmodified audit opinion on the city's financial statements," Brooks said, indicating the statements were materially correct and disclosures complete.

Brooks summarized major figures included in the audit: total citywide assets exceeded liabilities by $151.7 million; governmental funds (excluding utilities) ended with a combined fund balance of about $120.2 million (an increase of roughly $23 million from the prior year); unassigned general fund balance was $21.6 million, about 65% of annual general fund expenditures; and total governmental revenues were approximately $58 million for the year. He also noted an increase in sales tax and property tax revenue and that developer capital contributions accounted for a sizable portion of utility fund activity.

Brooks described the city's audit process and the optional elements of the annual comprehensive financial report (ACFR), including a statistical section and management discussion and analysis. He said the city has submitted the ACFR to the Government Finance Officers Association (GFOA) for the Certificate of Achievement and expects the city to receive the award for a 17th consecutive year.

Councilmembers responded positively to the presentation. One councilmember said the unmodified opinion bolsters public confidence in the city's fiduciary stewardship. Following the presentation, Councilmember Garcia moved to receive the annual comprehensive financial report as presented. The motion was seconded by Mayor Pro Tem Semerich and passed on a voice vote with the council saying "aye." No opposing votes were recorded.

The audit also included a review of compliance with the Texas Public Funds Investment Act; Brooks reported no compliance issues. The auditor highlighted that the general fund's unassigned balance substantially exceeds the GFOA recommended minimum reserve and noted that strong reserve levels can positively affect bond ratings.

The council took no further action beyond receiving the report.