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Temple City receives clean audit; midyear review shows $5.8M park commitments if grants fall short
Summary
Independent auditors issued an unmodified opinion on the city's FY 2024–25 financials and its ARPA spending; the midyear review projects an ending fund balance that could be drawn down by roughly $5.8 million to cover two park projects unless additional grant funding arrives.
City officials told the City Council on April 7 that independent auditors issued a clean (unmodified) audit opinion for the fiscal year ended June 30, 2025 and that the city’s single‑audit of American Rescue Plan Act (ARPA) spending was also clean.
“Clifton, Larson, Allen, have issued an unmodified opinion, also known as a clean audit for fiscal year 2425,” Administrative Services Director and City Treasurer Alex Kung said, summarizing the auditors’ finding and the transparency of the audit process.
Staff told the council the general fund began FY 2024–25 with about $36.0 million and closed at roughly $35.5 million. That modest decline reflected reinvestment in capital projects (playground work at Live Oak Park, roof and HVAC repairs at City Hall and acquisition of a property across from an Ace Hardware store for a new park) and one‑time revenues, notably a large building‑permit payment tied to a Lost Tunis development.
“[W]e spent what was left of our ARPA funds, which totaled about $2.7 million on the sheriff's contract,” Kung said, noting that ARPA reimbursements helped this year but will not be available going forward.
In the midyear review staff projected the city could draw approximately $5.8 million from reserves for two park projects (Sultana Park and a second park property identified in the packet). Staff emphasized that the $5.8 million estimate assumes no outside grants; the city has applied for grant support and asked a state representative for about $1.5 million and another $750,000 toward design/construction costs.
Council members repeatedly asked staff to pursue grant funding and to consider whether retaining outside grant‑writing or advocacy services would increase the city’s success competing for state and federal resources. Staff said those options would be considered in upcoming strategic planning and the budget study session.
Council voted unanimously to receive and file the ACFR and to receive the midyear review and approve the proposed budget amendments, as staff recommended. Staff told the council it will return with any necessary budget adjustments tied to grant awards, final engineering estimates, and the ongoing design work for the parks.
The unanimous votes concluded the city's formal audit and midyear budget actions for the evening; staff said they will monitor interest‑earnings volatility and capital project timing as they refine projections for FY 2025–26.
