Huachuca City accepts clean 2024–25 audit; auditors flag landfill and utility trends

Jennifer Frank, the town's outside auditor, told the Town Council on April 9 that the independent auditors issued an unmodified (clean) opinion on the Town of Huachuca City's financial statements for fiscal year 2024–25 and found no material weaknesses in internal control or compliance. "Happy to report you had an unmodified clean opinion again this year," Frank said during her presentation.

Frank summarized the town's fiscal position: total net position was about $12.3–$12.4 million at June 30, 2025, and she reported that net position increased during the year by approximately $330,333. She attributed much of the governmental capital-asset growth—"a little over $3 million"—to the Skyline project and said governmental fund balances rose while business-type (utility) funds saw a modest decrease tied to depreciation and operating results. Frank also highlighted long-term liabilities, noting governmental long-term debt at about $892,000 and business-type long-term debt of roughly $5.1 million, including a landfill closure/post-closure liability of about $3.8 million.

Frank reviewed enterprise fund performance: the water and sewer funds showed modest net income and positive cash trends, sanitation expenses slightly exceeded revenues for the year, and the landfill reported revenues near $1.6 million against expenses just under $1.9 million, producing a net operating loss in 2025. She noted the town holds restricted cash—about $2.8–$2.9 million—set aside for landfill closure/post-closure obligations. Frank recommended monitoring proprietary fund cash flows and ensuring the town plans for future capital and infrastructure needs.

Mayor Johann Wallace moved to accept the audit; Councilmember Christy Hirshberg seconded the motion, which the council approved unanimously. After the vote Wallace praised staff for their work on the town's financial statements and oversight, thanking department heads and auditors for their efforts.