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City Council accepts clean annual audit; general fund holds about nine months of reserves
Summary
The Port Aransas City Council unanimously approved the annual financial report for the year ending Sept. 30, 2025, after a presentation by Selena Jones of auditing firm AIP. Jones told council the auditors issued an unmodified (clean) opinion and the city finished the year with a $157.9 million net position and strong fund balances.
The Port Aransas City Council voted unanimously to accept the city’s annual financial report for the fiscal year ending Sept. 30, 2025, after a brief presentation by Selena Jones of auditing firm AIP.
Jones told the council the independent auditor’s opinion "was unmodified — that's the best opinion that we can give for an audit," and said the engagement followed generally accepted auditing standards, government auditing standards and uniform guidance. She said the city’s governmentwide assets exceeded liabilities with a total net position of $157.9 million as of Sept. 30, 2025, split between $111.9 million in governmental activities and roughly $46 million in business-type activities.
In year-over-year comparison, Jones said total net position increased by $9.9 million from the prior year, with governmental activities contributing about $7.3 million of that increase primarily because of stronger sales tax and franchise-fee collections and investment earnings. At the fund level, the total fund balance across all funds was $58.2 million; the unassigned portion was $14.9 million and the general fund carried an ending fund balance of $13.8 million (a $1.7 million decrease from the prior year), which Jones characterized as roughly nine months of operating reserves.
Staff noted restricted balances totaling approximately $40.2 million: $28.7 million in construction funds, about $8 million for economic development, $1.4 million for public safety, $1.6 million for culture and recreation and roughly $519,000 in debt service. Jones also said the city underwent a single audit because it expended over $1 million in federal awards (disaster grants tested) and that auditors reported no findings, material weaknesses or questioned costs related to that grant.
Council adopted a resolution directing the finance director to publish a summary of the audit in the official newspaper and to file copies in the city secretary’s office, consistent with the home-rule charter. The resolution passed on a roll-call vote with all members present voting yes.
The finance director will publish the audit summary as required and staff said the draft report will be posted online once final drafting edits are complete.
