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Audit: City receives unmodified opinion; reserves and net position rise
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Summary
External auditor Jonathan Hall told the council the city's financial statements received an unmodified (clean) opinion for the fiscal year ending 09/30/2025; general‑fund revenues exceeded budget and the city meets its six‑month reserve requirement.
Jonathan Hall, audit partner with CRI, told the City Council that the city’s annual comprehensive financial report for the fiscal year ending Sept. 30, 2025, received an unmodified — or “clean” — audit opinion.
“The city’s basic financial statements present fairly in all material respects,” Hall said, reading from the auditors’ opinion. He reported total assets rose to about $141,000,000 from roughly $122,000,000 in the prior year and said the city’s net position increased to approximately $109,500,000 from $96,500,000.
Hall walked the council through key measures of fiscal health. He said general‑fund revenues were about $16.9 million compared with a budgeted $16.1 million, while expenditures were about $16.4 million versus a budgeted $17.8 million, producing a positive change in fund balance of roughly $589,000 as opposed to a budgeted decrease of $1.6 million. Hall said the city meets its policy requiring a six‑month operating reserve; the computed requirement was about $8,147,000 and the unassigned fund balance was reported at about $12,600,000.
On liabilities, Hall said long‑term liabilities increased modestly, reflecting a recent bond issuance and routine pension‑related amounts; total liabilities were presented at about $32.4 million versus $30.6 million the prior year. He noted certain funds — including the hotel‑motel and venue project funds — hold significant balances (combined roughly $23.8 million for related funds).
The audit included a single‑audit review of federal grant awards. Hall said the city reported total federal grant expenditures of about $2,687,000 and that the transportation program met the threshold for major‑program testing ($799,000 on the SEFA); auditors issued an unmodified opinion on compliance for the major program tested.
Hall said the auditors issued no reportable internal‑control findings or noncompliance items in their Yellow Book report; there was one advisory comment concerning information‑technology password parameters, which he described as a policy/practice mismatch rather than a financial misstatement. “We didn’t have any audit adjustments,” Hall said.
Council members moved to acknowledge receipt of the report; the council approved the motion by show of hands. The council will retain the ACFR as part of the public records and the city will submit the report for the Government Finance Officers Association certificate referenced in the audit packet.
