Council receives FY2024-25 financial report after clean audit

The Diamond Bar City Council unanimously voted Feb. 17 to receive and file the fiscal year 2024-25 Annual Comprehensive Financial Report (ACFR) following a staff presentation that reported an unmodified (clean) auditor opinion and no material weaknesses.

Finance Director Jason Jacobson told the council auditors found no fraud, waste or abuse and issued an unmodified opinion for both the financial statements and the single-audit of federal awards (about $910,000). He said total government-wide revenues increased by about $2.4 million to $47.4 million, driven by donated land (Stevens Field) and one-time capital grants; expenses rose about $3.4 million largely because of contract and staffing costs and capital activity.

Jacobson noted a modest, expected general-fund operating deficit of $254,000 (budgeted at $3.1 million to fund one-time CIP initiatives) and highlighted reserve movements, including a $1.28 million increase in unassigned general-fund reserves after moving CIP reserves. He also flagged a decline in sales tax and franchise fees as an area of concern: "Our sales tax is in decline," Jacobson said, calling out a drop in business-and-industry and fuel categories.

Councilmembers asked follow-up questions about the vehicle maintenance fund (capital replacement and operations), sales-tax trend assumptions for next year, and why the Stevens Field donation appears as revenue; staff explained the Stevens Field transaction is booked as an asset with offsetting entries and offered to brief members after the meeting.

Councilmember Chow moved to receive and file the ACFR; Councilmember Stan Lu seconded and the measure passed on a unanimous roll call.