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Auditor presents 2025 utility audit; city receives ‘clean’ (modified) opinion
Summary
An auditor told the board the 2025 audit produced a modified (described in the meeting as a "clean") opinion and highlighted rising sales across electric, water and sewer, adequate debt coverage, and a recommendation to consider a five‑year financial forecast and possible simplified rate filings.
The city received a positive audit statement for its utilities during the meeting, with the presenter telling the board the financial statements earned the highest assurance the firm can provide. "The end of this year's audit, your financial statements have received a modified opinion, which is also known as a clean opinion," the presenter said.
The auditor summarized usage and revenue trends across the three utilities, saying electric kilowatt‑hours sold grew year‑over‑year from about 44.5 million to roughly 45.6 million and water sales rose from about 55,000,000 to roughly 59,500,000, with sewer volumes also increasing. He reported that combined utility debt coverage exceeded the required 1.1 factor — dropping from 2.18 in 2024 to about 1.78 in 2025 after new clean‑water debt service — and described the city’s unrestricted cash as roughly six months of operating revenues for electric and water (about 6.3 months in 2025).
Board members asked questions about asset depreciation, capital needs and the timing of planned projects. The auditor advised the city to prepare a five‑year financial forecast and consult municipal advisers for debt packaging and rate strategy. The presentation closed with the auditor recommending the city consider available simplified rate filings for water and pursue a rate study where appropriate.
