City auditor issues clean opinion on FY2025; council receives comprehensive financial report

Brooks Watson & Company presented Taylor’s audited financial statements for the year ended Sept. 30, 2025, and issued a clean, unmodified audit opinion.

Mike Brooks, audit partner, summarized the audit process and presented key figures: total M&O property tax collections of about $6.6 million, INS property taxes of about $8.7 million, and an issuance of roughly $12.7 million in new CO debt during the year. Brooks reported grant revenues around $4.4 million and noted that sales tax receipts declined from the previous year after a temporary boost tied to large manufacturing activity. He also said the city prepared a comprehensive annual financial report expected to continue receiving GFOA consideration.

On fund balances, Brooks said the general fund balance decreased about $1.3 million in the year, and the city maintains a healthy unassigned fund balance position relative to the city’s policy and GFOA recommendations. He reviewed proprietary fund performance (utilities, airport, cemetery, sanitation), capital spending details (memorial track renovation, public works building, aquatic center renovation, drainage projects), and compliance with the Public Funds Investment Act.

Council voted to receive the Annual Comprehensive Financial Report as presented.

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"We were able to issue a clean, unmodified audit opinion over the financials," Brooks said, characterizing that result as the highest level of assurance.

Next steps

The audit and any minor auditor findings will be incorporated into the city’s financial records and any recommended journal entries; staff will follow up on audit findings and present required schedules to council as part of routine financial oversight.