Receive and file the Fiscal Year 2024-25 Annual Financial Statements and the related reports.

Attached for City Council’s review is the City of Canyon Lake’s Annual Financial Report (Report) and associated letters prepared by Lance, Soll & Lunghard, LLP (LSL). The Report expresses an “unmodified opinion” for the City acknowledging the City’s finances and accounting procedures are in order.  

In September, Lance, Soll & Lunghard, LLP (LSL) audited the City’s financial records inclusive of reviewing its internal controls and testing procedures. As a result of that effort, along with an unmodified opinion in the Audit Report, LSL issued two letters. As covered in the attached Internal Control Letter, LSL found that the City has no internal control deficiencies or compliance issues.  

Based on the Fiscal Year 2024-25 Audited Financial Statements the Fund Balance for the General Fund is $7,249,929, of which $2,023,609 is nonspendable.  For Fiscal Year 2024-25 the General Fund added $16,026 to the General Fund Fund Balance. The Fiscal Year 2025-26 General Fund Budgeted expenditures were $8,624,319, which would set the June 30, 2025, Emergency Reserve at $862,435, the Contingency Reserve at $431,217 and based on the Equipment Replacement schedule we are reserving $430,380 for the Equipment Replacement Reserve.  This leaves the Surplus Reserve at $3,502,288 which is 40.61% of the upcoming fiscal year’s General Fund budgeted expenditures.