City auditors issue clean FY2025 opinion; council hears fund‑balance and enterprise‑fund notes

The City of Columbus received a clean, unmodified opinion on its FY2025 financial statements during the City Council meeting Tuesday, an external auditor told council members.

David Erwin, managing partner with Malden and Jenkins, said the audit and accompanying compliance reports — including a single audit tied to federal spending — produced no findings and showed the city’s financial statements are “fairly presented in all material respects.” He said the report reflects strong oversight and that the city can rely on the statements for financial decisions.

The audit presentation highlighted the city’s key year‑end figures: total government assets of approximately $1,400,000,000; capital assets net of depreciation around $754,000,000; total liabilities near $705,000,000; revenues roughly $483,000,000; and an ending net position of about $683,000,000, an increase of about $65,000,000 for the year. From the fund perspective, the general fund recorded revenues near $263,500,000 and expenditures of about $256,800,000. Transfers to other funds of just under $33,000,000 led to a net decrease in the general‑fund balance of roughly $26,200,000 and an ending general‑fund balance near $106,900,000.

Council members asked questions about credit metrics and what drove the change in fund balance. Erwin noted the city’s fund‑balance policy (minimum roughly 60 days of budgeted expenditures) and the Government Finance Officers Association benchmark, and said Columbus exceeds both measures. He also said the drop in fund balance was a planned, strategic use of reserves to fund capital projects and debt service rather than an operational shortfall.

The auditors also flagged operating losses in three enterprise funds: the waste management fund ended the year with a deficit net position (around $680,000) after an operating loss of just under $5,000,000, the Civic Center had an operating loss of roughly $2,000,000 (largely offset by transfers from the hotel/motel tax fund), and the transportation fund showed an operating loss (about $10,300,000) that was offset by non‑operating revenues and capital contributions. Erwin recommended periodic evaluation of these funds to pursue operational sustainability.

Deputy City Manager and Finance staff said they will provide follow‑up information on enterprise fund performance at a future meeting and noted bond rating reaffirmations tied to the city’s financial reporting and reserves.

Next steps: Council requested a more current mid‑year look at the integrated waste fund following fee changes and asked staff to return with an update on progress at an upcoming meeting.