Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the City Finance topic
No spam. Unsubscribe anytime.
Chadron council accepts 2024–25 audit; auditor flags staffing constraints and wastewater depreciation
Summary
Auditor presented an unmodified opinion on the 2024–25 financial statements, highlighted capital purchases and decreased net debt, recommended monitoring wastewater depreciation and noted limited segregation of duties as a staffing reality; the council accepted the audit by unanimous vote (Resolution 2026-46).
The City of Chadron council unanimously accepted the auditor’s report for the 2024–25 fiscal year after a presentation from Michael of AMGLPC, who reported an unmodified opinion and reviewed key fund balances, capital expenditures and recommendations.
Michael told the council the audit produced an unmodified opinion, meaning the financial statements were presented fairly with no material misstatements. He highlighted several major capital expenditures in the year, including about $137,000 for ADA upgrades at the plaza restroom, $210,000 for a loader for the street department, $370,000 on street improvements and approximately $38,000 for airport snow-removal equipment.
The city’s outstanding debt stood at roughly $3,279,000 at Sept. 30, 2025, down from about $4,242,000 the prior year — a near $964,000 (about 22%) reduction. The auditor summarized fund-level changes: the general fund decreased by about $335,000 while the street fund increased by roughly $134,000; several other funds saw increases or decreases that were presented in the report.
Michael also reviewed utility fund performance: the water fund showed a modest increase in net position while the wastewater fund reflected decreases driven largely by depreciation. He said depreciation expense (about $329,000 called out) contributed to an operating loss in wastewater, and recommended continued monitoring of rates and reserves even though cash reserves remain healthy in several funds.
On internal-control observations, the auditor noted limited segregation of duties is a persistent issue for a city this size and listed about 10 findings or suggestions in the management letter; he emphasized that the council’s oversight role remains important.
After questions from councilmembers about benchmarking and rate recommendations, the council introduced Resolution 2026-46 to accept the audit and voted unanimously in favor. The council directed staff to use the audit’s findings as part of the upcoming budget process and to continue oversight of utility rates and fund reserves.
The audit was placed on the record and the council moved on to other agenda items.
