Cloverdale accepts clean audit; city posts $3.3 million increase in net position

The Cloverdale City Council accepted the city's audited financial statements for the fiscal year ending June 30, 2025 on Feb. 25, following a presentation from the city's auditor.

Terry Krieg, the independent auditor, told the council he had issued an unmodified opinion and that the city's combined net position increased by about $3.3 million during the year. Krieg said the government-wide combined net position was about $117 million, of which roughly $7.6 million was available for future use; much of the remainder reflects capital assets and investments.

Krieg also highlighted liabilities that bear monitoring: the city's unfunded retiree medical obligation is about $1.9 million, and the pension plan's net unfunded liability is roughly $12.8 million. He recommended consideration of funding strategies for retiree medical benefits and noted that some operating losses shown in enterprise funds largely reflect depreciation of recently completed capital projects.

City management said the general fund strengthened compared with the prior year and that utility operations remained stable. Council then voted to accept the audited financial statements; the motion passed unanimously (5-0).

Council members praised staff for fiscal stewardship and thanked the finance team for the audit preparation. The council recorded the acceptance as part of its regular business; no additional fiscal actions were taken at the meeting.