City audit returns clean opinion; council reviews fund balances and planned uses

The city’s external auditor reported an unmodified (clean) opinion on the FY2025 financial statements and no internal-control findings for the audit period, city auditors said March 16.

"We had an unmodified and that's a clean audit report," auditor Kelly Bergie told the mayor and council, then noted an emphasis-of-matter paragraph related to GASB guidance on compensated absences and the related disclosure in the financial notes.

Finance staff summarized year-end balances: the government-wide (governmental) funds total was reported at approximately $79.3 million as of Sept. 30, 2025; enterprise fund balances totaled about $62.3 million. The general fund showed a modest increase in the current year (about $369,000), while planned uses of fund balance covered street projects ($10.2M of projects with $5.7M drawn from fund balance), parks pool and projects ($4.5M projects, $532,000 from fund balance) and fire capital (about $1.66M in equipment, $415,000 from fund balance).

Staff explained typical accrual-to-cash timing variances and said they will continue to prioritize one-time uses of fund balance for capital rather than ongoing operational spending.

Councilors praised the turnaround of the municipal golf operations — staff reported a positive balance and a $423,000 fund balance — and asked about remaining ARPA funds. Finance staff said the city has roughly $1 million in unspent ARPA funds that must be spent by Dec. 31, 2026, and that planned purchases include a training facility and large police equipment orders.

Council accepted the audit presentation and later unanimously approved accounts payable and payroll as presented.