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Audit flags landfill operating losses and closure liability for Huachuca City
Summary
Auditors told the Council the landfill fund ran a net loss in 2025 with significant post-closure liability; restricted cash of roughly $2.9 million was set aside, and Council was asked to monitor operations and capital needs.
During the financial audit presentation, auditors and staff discussed the landfill fund’s long-term financial position and closure/post-closure liabilities. Jennifer Frank noted enterprise funds should generate operating cash for future capital needs; the landfill showed expenses just under $1.9 million in 2025 with revenues of about $1.6 million, producing a net operating loss for the year.
Frank and staff described that the Town had set aside roughly $2.9 million in restricted cash for closure/post-closure obligations in line with agreements tied to the landfill. Council members asked staff to continue regular reporting on landfill financial health and repair/maintenance cost drivers so the town can ensure funding for required closure activities and capital investments.
