Fruita auditors give city a clean 2025 opinion as council accepts financial statements

The Fruita City Council on June 16 accepted the City of Fruita’s 2025 financial statements and the independent auditor’s report after a presentation by McMahon & Associates that concluded with an unmodified opinion.

“we issued another unmodified audit opinion this year,” said Cal Seneker, a manager at McMahon & Associates, describing the firm’s conclusion that the city’s financial statements are materially accurate and prepared in accordance with applicable accounting standards. Seneker said the firm found no significant issues and offered two small recommendations: formal filing of conflict-of-interest disclosures with the Secretary of State and consideration of a formal arbitrage study for outstanding tax-exempt debt.

Finance Director Christy Amishida told the council the city’s total net position was $143.1 million for 2025, an increase of $7.9 million (5.8%) from 2024. Revenues totaled $30.9 million against $23.0 million in expenses, producing a positive change in net position. The general fund balance sits at $16 million, with $7.7 million unassigned; unrestricted resources declined due in part to large capital projects such as 19 Road and South Mesa.

Councilors asked how Fruita compares with similar-sized Colorado governments and whether the city should use debt more actively. Seneker said Fruita’s financial position is “on the stronger side” of the firm’s clients and that appropriate use of debt depends on council priorities. He recommended routine transparency measures — for example, clear expense reports or a check register in the monthly reporting package — to aid oversight.

After discussion and an opportunity for follow-up questions, the council moved to approve the City of Fruita 2025 financial statements and accept the auditor’s report; the motion passed unanimously on a recorded vote.