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St. Gabriel posts $1.79 million general-fund gain; auditors issue clean opinion on FY 2024–25 finances
Summary
Assistant Finance Director Linda Tang reported auditors issued a clean (unmodified) opinion on the FY 2024–25 financial statements; the general fund showed a $1.789 million net increase in fund balance (ending balance $22.96 million); staff noted pension and OPEB liabilities decreased and explained CalPERS valuation timing and investment-return impacts.
The City of St. Gabriel’s auditors issued a clean (unmodified) opinion on the city’s financial statements for the fiscal year ended June 30, 2025, Assistant Finance Director Linda Tang reported to the council. Tang said the general fund recorded $56,973,000 in revenues and transfers in, $55,184,000 in expenditures and transfers out, and a positive net change in fund balance of $1,789,000, bringing the general fund to an ending balance of $22,960,000.
Tang reviewed revenue and expenditure drivers: an overall $1.8 million increase in revenue from the prior year (driven largely by taxes and property tax increases), and a $5.45 million increase in general fund expenditures driven by personnel, retirement and contractual costs. She noted capital outlays and transfers out related to planned capital projects and mission-playhouse support. The city continues to meet its 25% reserve goal and received a certificate of excellence in financial reporting from the Government Finance Officers Association for the 35th consecutive year.
Council asked detailed questions about pension and other post-employment benefit (OPEB) liabilities. Tang and auditor Terry Robbertson explained that actuarial valuations lag the fiscal year (figures cited used a June 30, 2024 measurement date), and that CalPERS’ assumed break-even return (the actuarial assumption) was about 6.8%; when actual investment returns exceed that assumption in a valuation year, the recorded liability can decline. Tang reported a pension liability reduction of about $1.85 million and an OPEB liability reduction of about $2.2 million for the measurement period described in the presentation.
Council members also asked about grant-seeking efforts and the city’s use of an external consultant to identify grant opportunities; staff said a small set of awarded grants already exist and more are in process. Finance staff recommended the council receive and file the audit and the annual comprehensive financial report; the council accepted the report as presented and staff will present midyear updates at the next meeting.
What to watch: staff noted that midyear budget adjustments and the FY 2026–27 budget cycle will consider cost increases (for example, recent employee compensation changes) and program funding needs. Audit documents are posted on the city website for review.
