City auditors give Taylor an unmodified opinion; ARPA spending and fund balance highlighted

Plant Moran auditors presented the fiscal-year-ended June 30, 2025 financial audit and told the council the city received an unmodified opinion on its financial statements and no findings on the federal single audit. "The city did receive what we refer to as an unmodified audit opinion," audit partner Bill Brickey said, calling it "the highest form of assurance" available from an independent audit.

Brickey and audit manager Nate Sherb summarized work on the city's financial statements, the single-audit for federal grants and related supplemental reports. The auditors reported the city spent just over $5,200,000 in federal funds in 2025 and specifically tested $4,700,000 in American Rescue Plan Act (ARPA) expenditures; "we concluded that the city did comply with all the requirements," Brickey said.

Auditors also quantified changes in reserves: the city's unassigned general fund balance was reported at $20,600,000, roughly 39.8% of current-year expenditures (about 145 days of coverage). "You do have a healthy level of fund balance," Brickey told council members, while cautioning that the balance was bolstered by one-time ARPA revenues and may not recur.

Nate Sherb walked the council through revenue and expenditure drivers, noting a roughly $4,000,000 increase in general fund revenue and $3.2M of long-term debt paid down in the year. He said capital spending totaled about $15.5M and that net pension/OPEB liabilities remained material: the auditors reported a combined net liability around $230,450,000 across pension and retiree health plans.

Council moved to receive and file the audit as presented and asked staff follow-up questions about fund balance and timing; the motion carried on the floor. The auditors said all filings were timely with state and federal authorities.