The City’s auditors released their audit report on 11 Jun 2026 for the City’s fiscal year ended 30 Jun 2025 – I’m happy to share it contains clean (“unmodified”) audit opinions in all three key areas.

A few other highlights from the audit report for you as well:

  • Operating sustainability: Strong. The recurring General Fund is a good measure of underlying operations and produced another increase in fund balance while revenues met budget and spending came in below budget. Core property and income tax revenues are growing at healthy rates, and the City’s very large unassigned reserve provides considerable capacity to absorb recessionary revenue losses, emergency spending or temporary operating deficits.

  • Balance-sheet strength: Strong. The City has strong liquidity, comparatively modest funded debt, significant unrestricted net position, and substantial tangible capital assets, translating to good fiscal flexibility. Our degree of capital investment also suggests we aren’t simply preserving cash by deferring needed infrastructure investment. Net position finished at $76.93 million. Of that, $53.66 million is invested in capital assets, $5.05 million is restricted, and $18.22 million is unrestricted.

  • Retirement obligations: Mixed-to-strong. An Achilles' heel for organizations can often be unfunded pension obligations. Fortunately, our pension system is nearly fully funded, continuing a pattern of adequate contributions. Some may suggest our pay-as-you go approach to retiree health obligations, estimated at $13.17 million, could be a cautionary note, but as it stands now relative to our overall picture, it is not placing the City in a severly compromised position.

  • Revenue sustainability Property taxes have been growing around 9% while FY2025 saw a 22% total revenue growth rate heavily influenced by grants.

  • Capital/debt sustainability: Good Existing debt is readily supportable from current resources. The $4.62 million Capital Projects Fund deficit, degree of interfund financing, and $5.64 million of undrawn authorized debt are worth following over the next several years for emerging patterns and trend lines.

Check out my previous tips on how to interpret the City’s audit report, and you can download the latest audit report from the Audit Report page of the City’s website.