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San Dimas council accepts unmodified audit, approves roughly $2 million in recommended appropriations to shore up pension and infrastructure
Summary
At its Dec. 9 meeting the San Dimas City Council received an unmodified independent audit for the year ending June 30, 2025, and unanimously approved staff’s recommendation to apply roughly $2 million in one‑time appropriations — including a $1 million CalPERS contribution — to improve the city’s pension funding and capital reserves.
The San Dimas City Council on Dec. 9 received an independent auditor’s report that expressed an unmodified opinion on the city’s financial statements for the year ended June 30, 2025, and approved staff recommendations to allocate about $2 million in one‑time appropriations to address pension funding and infrastructure needs.
The audit team from Rogers, Anderson, Mallody & Scott told the council it had planned and executed interim and year‑end procedures, confirmed cash and investment balances, performed analytical reviews and testing of disbursements and payroll, and found no material misstatements. The auditor stated, “we had an unmodified opinion expressed” on the city’s annual comprehensive financial report. (Auditor representative to the council.)
Administrative Services Director Michael O’Brien summarized the financial highlights. He said the city’s net position ended the year at $134,610,000, “which was an increase from the prior year of just over $3,600,000.” O’Brien and staff recommended using one‑time resources to make targeted appropriations: roughly $1,000,000 as an additional CalPERS contribution to improve the city’s funding status, funding for the infrastructure fund and equipment reserves, and leaving contingency reserves to cover a projected shortfall.
O’Brien explained the rationale: the additional pension contribution would move the city’s reported CalPERS funding ratio closer to the 80% benchmark and reduce future actuarial pressure. He also described a proposed $250,000 addition to the equipment reserve and recommended continued funding for infrastructure matches and alley/sidewalk projects. In total staff characterized the recommended appropriations package as “about $2,000,000” with an additional $1,200,000 proposed to be retained to cover projected budgetary pressures.
Councilmembers questioned long‑term pension assumptions, the potential effects of changes in CalPERS’ discount rate on the city’s unfunded liability, and the durability of elevated interest‑income receipts that helped produce the surplus. Gardenia Duran, a partner on the audit engagement, told council that setting aside reserves for capital replacement was a “best practice” and appropriate for the city’s needs.
After discussion the council moved to receive and file the independent audit and to adopt staff’s recommendations for the proposed appropriations. The motion passed on a unanimous voice vote, recorded as 5–0.
What happens next: receiving and filing the audit documents the council’s acceptance of the audit results. The recommended appropriations will be incorporated into the city’s budget/appropriations process per staff direction and will appear in subsequent budget documents and fiscal reporting.
