Council accepts 2025 audit showing essentially breakeven finances

The city council unanimously accepted the fiscal 2025 audit after a presentation by the auditor, who said the financial statements were presented fairly and the city received a clean, unmodified opinion.

The auditor, Mike, told the council the government-wide statements showed about $12.4 million in total assets and an almost breakeven operating result (a net loss of about $3,979). He said city debt declined modestly and the city—nded the year with a positive unassigned general fund balance of roughly $537,688.

Mike described work to reconcile an escrowed amount of roughly $405,000 that auditors located while preparing the report, and said difficulty meeting a newly imposed state audit timeline had made the year—hallenging. "This new law left you only four months to complete audits," he said, urging earlier starts next year to avoid repeat delays. He also noted a $138,000 net pension liability on the balance sheet and recommended monitoring actuarial changes that could alter that figure in future years.

Council moved to accept the audit as presented and the motion passed with all members voting in favor. Chair noted staff will present required budget amendments next month to formalize adjustments discussed in the audit presentation.

Next steps include posting the audit as required and staff follow-up on outstanding items the auditor flagged, including providing a slightly larger-print version of the report on request.