DATE: January 14, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: ACCEPTANCE OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR FISCAL YEAR ENDING JUNE 30, 2025
RECOMMENDATION
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Staff recommends that the City Council accept the Annual Comprehensive Financial Report (ACFR) for the fiscal year ending June 30, 2025.
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BACKGROUND AND ANALYSIS
The Annual Comprehensive Financial Report (ACFR) is a set of financial statements for a state, municipality or other governmental entity that comply with the accounting requirements established by the Governmental Accounting Standards Board (GASB). It must be audited by an independent auditor using generally accepted government auditing standards. The City's independent auditor, Lance, Soll & Lunghard, LLP, has reviewed and provided an unmodified opinion on the accuracy of the City's financial statements.
On December 19, 2006, the American Institute of Certified Public Accounts (AICPA) Auditing Standards Board issued the Statement of Auditing Standards (SAS) No. 114. The primary purpose of this standard is to ensure open and transparent, two-way communication between the independent auditor and those responsible for overseeing the financial reporting process. This SAS also outlines the matters auditors must communicate to these parties. As part of the two-way communication with the governing body, the ACFR is submitted to the City Council via the formalized agenda process.
"Net position" represents the simplest test of financial health for a city, indicating the excess (or deficit) of assets over liabilities. Net position is used as a measure of "net worth" rather than as a measure of expendable available financial resources. The City's Total Net Position is a combination of all City funds including governmental funds that are used for tax-supported activities, such as the General Fund, Housing Fund, Gas Tax Fund, etc., as well as proprietary funds for busine...
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