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Auditor issues clean opinion for New Freedom Borough's 2025 financials; council asks for long-term planning briefing
Summary
An auditor presented a clean opinion on New Freedom Borough's Dec. 31, 2025 financial statements, reporting roughly $6.9 million in cash (mostly in sewer/water funds), $16 million in total assets, revenue of about $9 million and net income of $2.5 million; council pressed for long-term debt-capacity and fund-balance planning.
The borough's independent auditor delivered the December 31, 2025 audit to council and issued a clean opinion, indicating no material misstatements in the financial statements.
Key figures the auditor highlighted: total cash approximately $6.9 million (nearly $6 million held in the sewer and water enterprise funds), total fixed assets net of depreciation around $9 million, total assets near $16 million, general obligation notes payable about $6.9 million, total revenue approximately $9 million (sewer and water revenue about $4.7 million), and expenditures roughly $6.5 million. The auditor noted net income for the year of about $2.5 million and principal payments on debt of approximately $534,000 in the reporting year.
Council used the audit presentation to explore long-term debt capacity and the budgetary plan for a recurring difference between service expenses and direct charges for those services (a roughly $2.1 million annual coverage by general revenues). The auditor explained borrowing limits imposed by state standards (noting the need to separate borrowing limits by fund and the ability to issue self-liquidating debt for certain enterprise activity) and reiterated the council's existing fund-balance policy (16.7% target and specified emergency reserves for sewer and water).
Council asked staff to add long-term financial-planning and capital-impact analysis to an upcoming agenda so members can weigh potential capital projects (parks, park amenities, and other improvements) against debt capacity and ongoing maintenance obligations. The auditor and finance staff will provide supporting schedules for that item.
