City auditor gives FY2025 a clean opinion; assets and net position modestly up

The city’s auditor presented the annual financial report for the fiscal year ended June 30, 2025, saying the firm had issued an unmodified opinion and had not found any material weaknesses or significant deficiencies.

“The opinion you want when you're working with financial reports,” the auditor said, noting that deficiencies flagged in the prior report were corrected in FY2025. The auditor reported total assets of $84.6 million, roughly $2 million higher than the prior year, and a total net position of $66.7 million, also up about $2 million from the prior year. Governmental activity revenues were reported at $28.6 million, a drop of about $10 million from the prior year; the auditor said that decline largely reflected shared bond proceeds recorded in the prior year that did not recur.

Expenditures for governmental activities were essentially flat at about $28.4 million. Total capital assets on the government-wide statement were about $315 million at year-end, an increase of roughly $17 million from the prior year, and total debt decreased by about $3 million as the city paid down existing liabilities.

The auditor said the report is in final review and will be finalized and filed with the state once internal signoffs are complete. No board action was taken at the work session; the audit was presented for information and to place the report on the record.

Why it matters: An unmodified opinion indicates independent auditors found the city's financial statements fairly presented in accordance with applicable accounting standards. The report’s revenue and capital-asset details will be inputs as the city prepares its FY26-27 budget and capital plans.