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Council hears clean audit, lower-than-expected bond costs; RDA fund progress noted
Summary
Auditors delivered an unmodified opinion on Holiday's 2025 financials; the city reported a true interest cost of 3.918% on a recent bond sale and reduction of RDA fund deficits after a $2.5M repayment.
City finance staff and independent auditors presented the 2025 financial report and delivered an unmodified (clean) opinion to the council Thursday.
Christian, the city's finance lead, said the city's total net position increased by $6.7 million in 2025 and that the general fund's unassigned fund balance stands at $8.3 million, or about 33% of general-fund revenues — under the state's 35% limit. "That's currently at 33% of general fund revenue," Christian said in his summary.
Auditor Rob (HPME) told the council his firm gave a clean opinion and noted no material misstatements or internal control deficiencies. "We're happy to report tonight that you have received this unmodified opinion," he said. The auditors also confirmed the RDA fund repaid approximately $2.5 million of a prior loan and reduced an unassigned deficit.
City manager Gina reported the city's bond package went to market and closed with a true interest cost of 3.918% and total debt service of about $16.9 million, roughly $1.2 million less than earlier estimates. Bids for the City Hall reconstruction will be solicited with proposals due Jan. 21, and staff expects to return Spring Lane project bridging documents to the council in February.
Council members praised staff and finance for the results and stressed that available capital-project funds will be used for upcoming large projects, including Highland Drive reconstruction and Spring Lane. The audit presentation concluded with no required corrective actions and standard state compliance reporting.
Next steps: staff will bring Spring Lane documents back for public and council input in early 2026; City Hall bidding will proceed and the city will finalize bond closing next week.
