Lowell audit shows $15.0 million in assets; water and sewer posts $371,006 loss

Butler, the city auditor, presented the finalized financial statements for the fiscal year ending June 30, 2025, telling the Lowell City Council that the city's combined assets exceeded liabilities and the audit had been approved by the Local Government Commission in early February. “The combined assets exceeded liabilities by 11,345,000,” Butler said, and reported combined assets of $15,000,007.85 and an unassigned fund balance of $2,000,005.14.

Butler said the general fund ended the year with roughly $1,000,008 in net income, while enterprise funds showed mixed results: “the water and sewer fund had a decrease or net loss in the water and sewer fund of $371,006.43,” he said. He described the audit timeline: the audit was completed in November, submitted to the LGC in December and approved in early February, which affected when hard copies were distributed to the council.

Councilors pressed for operational clarity on near-term cash availability and the divergence between budgeted and actual water and sewer revenues. Butler said cash and cash equivalents plus restricted cash amounted to a little over $9,000,000 as of June 30, 2025, and pointed councilors to exhibits and pages in the report for details. Council members asked whether a delayed grant or a postponed project explained the gap between budgeted and actual water/sewer amounts; Butler said that could be a factor.

The presentation closed with council members thanking the audit team. There was no formal motion required beyond accepting the report as presented; the Local Government Commission’s approval remains the official acceptance milestone for the audit.

What's next: Councilors requested current-month cash-on-hand figures; staff said they would provide updated cash information at the next meeting.