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Madera accepts FY 2024–25 audited financial statements showing stronger reserves and lower pension liability
Summary
Council accepted the FY 2024–25 audited financial statements showing an increase in government‑wide net position to about $420 million, stronger general‑fund reserves (unassigned balance ~$20M; available reserves ≈81% of expenditures), and a modest reduction in pension liabilities; auditors issued an unmodified opinion with no material weaknesses.
The Madera City Council accepted the city’s FY 2024–25 audited comprehensive financial statements on March 18, receiving a report that officials described as a positive indicator of fiscal health.
Finance Director Mike Lima presented the audit highlights: government‑wide assets increased by roughly $10 million while liabilities declined by about $16 million, bringing net position from approximately $376.5 million to roughly $420 million. The city’s general fund unassigned balance grew from about $14.6 million to $20 million; combined with a stabilization reserve, available fund balance rose to roughly $32.8 million, equal to about 81% of general‑fund expenditures (a high reserve level by local‑government standards).
Lima pointed out that the city realized substantial interest earnings (noting investment income totaled several million dollars) and also spent significant one‑time American Rescue Plan Act (ARPA) funds on capital projects. He also reviewed pension and other post‑employment benefit (OPEB) positions: the city’s miscellaneous and safety pension unfunded liabilities decreased (roughly $2.3M decline for miscellaneous and about $850K for safety in the period shown) while OPEB liabilities showed small growth.
The independent auditors issued an unmodified (clean) opinion on all report units, reported no material weaknesses or significant deficiencies in internal control, and identified no accounting disagreements with staff.
Council accepted the audited statements and commended staff for maintaining strong reserves while advancing capital projects; acceptance was unanimous.
Why it matters Audited financial statements are the primary public check on a city’s financial operations. The audit’s unmodified opinion means the statements fairly present the city’s financial position; rising reserves and declining pension unfunded liabilities are indicators that the city’s fiscal policies and spending discipline preserved flexibility while the city used one‑time funds for capital work.
