Yucaipa receives clean audit; finance director reports $6.6M positive change in net position

Finance Director Phil White presented the city's Annual Comprehensive Financial Report for the year ended June 30, 2025, describing it as a "trailing document" that reconciles actual results. He told the council the city reported $270 million in total assets and a $248 million net position, with $38 million in unrestricted net position (up from $34 million the prior year). Phil White said the city recorded a $6.6 million positive change in net position for the year after collecting roughly $36.4 million in unrestricted revenues to cover a $29.8 million net cost of services.

White flagged a $15 million deficit in an internal "diff" fund (an advance/internal loan), and identified a $4.5 million loan receivable disclosed in the footnotes. He emphasized the report carries an unmodified (clean) audit opinion from the external auditors and noted the city expects to receive the GFOA review award again for the fiscal period. "This is an audited financial statement," he said, noting the external opinion found the statements "fairly stated."

Council members thanked the finance team and asked procedural questions. One council member reiterated that Measure S revenues have been committed to public safety via an oversight committee and that reporting from the Measure S oversight panel supports restricted use for public-safety investments. Council asked staff to continue monitoring the inner-fund loans and provide comparisons during budget discussions.

The council moved, seconded and voted by voice to receive and file the report. No additional council action was taken at the meeting other than receipt for the public record.

Ending: Staff will bring follow-up materials to upcoming budget deliberations, including comparables and additional detail on inter-fund advances and Measure S reporting.