Kyle receives clean FY2025 audit; general‑fund reserves fall after one‑time capital drawdown

The City of Kyle’s independent auditors issued an unmodified (clean) opinion on the city’s fiscal year 2025 financial statements, and presented results showing an overall increase in net position even as the general fund balance declined after one‑time capital spending.

Auditor Janet Pitman of ABIP PC told the council the audit team found no material weaknesses or significant deficiencies in the city’s internal controls and issued a clean opinion on both the city’s financial statements and required federal single‑audit work. "It is an unmodified opinion," Pitman said during her presentation.

City finance staff presented highlights from the fiscal year. The city’s combined net position (all funds) was $682.6 million at Sept. 30, 2025, up roughly $81.4 million (13.5%) from the prior year. That growth primarily reflected capital assets and overall balance‑sheet activity.

At the same time the city’s general fund ended FY2025 with $17.17 million in fund balance — a decrease of $8.86 million (about 34%) from FY2024. Director of Finance Perez Moheit explained that the council had previously approved a planned drawdown of general‑fund reserves in the FY2025 budget to pay for one‑time capital expenditures and transfers to capital projects, which accounted for roughly $8.8 million of the decline.

Auditors also completed the single‑audit of federal awards (the city expended approximately $10.5 million in federal funds in FY2025, largely ARPA dollars). Pitman said the single‑audit work found no reportable compliance findings and no questioned costs.

What council asked for next: Council members discussed the city’s debt and capital plan during the presentation and asked staff to include more detailed projections tying future debt issues to the CIP and to show impacts on effective tax rates in the upcoming budget discussions. The audit was accepted by council vote.