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Calabasas posts unqualified audit; general fund up $1.4M, tennis and swim show operating deficit
Summary
The City of Calabasas received an unqualified audit opinion for fiscal 2024–25, with the general fund showing a $1.4 million increase; the Tennis & Swim Center ran a roughly $186,000 operating deficit and will require more than $1 million in capital upgrades in coming years, officials said.
The City of Calabasas received an unqualified opinion from its external auditors for the fiscal year ending June 30, 2025, while staff outlined both near-term operating issues and major upcoming capital needs.
“The auditor has given the city their highest rating, which is an unqualified opinion,” staff presenter Ron told the council while reviewing the annual financial report. He said the city recorded $31,900,000 in revenues and $30,500,000 in expenses for the year, leaving approximately $1,400,000 added to the general fund.
The report flagged one procedural area for improvement: bank reconciliations need to be completed more promptly, Ron said, and staff told council the issue is being addressed.
Council and staff discussed the city-operated Tennis & Swim Center, which posted roughly $5,200,000 in expenses against about $5,000,000 in revenues in 2025, creating an approximate $186,000 deficit. Ron said the council approved fee increases earlier this year intended to reduce that shortfall and that staff projects the deficit for the current year will be substantially lower, possibly under $100,000, and that the facility may show a positive balance in fiscal 2026–27.
Council members probed planned capital work at the facility. Ron told the council the facility needs a replacement water main and new main and sub electrical panels; staff estimated the combined work could exceed $1,000,000 in the coming fiscal year and beyond. “We will be working on tennis and swim for quite a few years into the future,” he said.
The audit also lists long-term liabilities: an unfunded pension liability of approximately $10,900,000 and other post-employment benefit obligations of about $8,100,000; both figures decreased slightly in the year under review, staff said.
Mayor Pro Tem Ed Albrecht and other council members asked for additional detail from the auditors; staff said the audit team was available via Zoom and that the budget committee would follow up with targeted questions.
The council received and filed the audit without objection.
