Agenda No. 7.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | March 17, 2026 |
| Department: | Finance |
| Subject: | Resolution 26-R-044 -Approval of the Annual Comprehensive Financial Report FY 2024-25 (S. Gonzalez/J. Walters)
|
BACKGROUND
State law requires that local governments complete an annual audit by an independent licensed public accounting firm and publish an annual financial report within 6 months of the fiscal year end date.
The auditors look to make sure there are appropriate practices to ensure balanced and true accounts of the City's financial transactions. They do this by looking at a sample of transactions to verify proper approvals were followed and by verifying some values externally with other organizations the City does business with. Based on their review, auditors will provide their findings on how well the City keeps track of its financials.
The City received the highest level of confidence from our auditors that the City's financial statements are fairly represented in the annual report and they found no significant matters or issues as stated in their Governance Letter attached and in the Independent Auditor's Report in the Annual Comprehensive Financial Report (ACFR).
Attached is the official Fiscal Year 2024-25 ACFR for the City of Schertz as of September 30, 2025. These statements show the financial performance and financial health of the City for the previous fiscal year. The presentation will be made by Jeremy G, CPA, Senior Audit Associate, of ABIP, LLP. The Audit Committee consisting of Councilmember Heyward, City Manager Steve Williams, Deputy City Manager Brian James, Assistant City Manager Sarah Gonzalez, Finance Director James Walters, and Assistant Finance Director Jessica Dycus, met on March 10, 2026 to review the audit findings and financial statements as presented by the auditor, Janet Pitman, Partner of ABIP, LLP.
The assets and deferred outflows of the City of Schertz exceeded its liabilities and deferred inflows at the close of the most recent fiscal year by $445,020,423 (net position). Of this amount, $93,407,247 (unrestricted net position) may be used to meet the City's ongoing obligations to citizens and creditors. The City's total net position increased by $67,116,291. This was greater than the increase of $28,702,437 in the prior year due to sales tax growth and additional capital contributions.
As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $231,222,254, an increase of $30,926,126 in comparison with the prior year. The primary cause of this increase was an increase in sales tax revenues that exceeded expenditure growth and additional capital contributions.At the end of the fiscal year, the combined total of the General Fund assigned and unassigned fund balances was $21,407,016 which is 44.7% of the general fund expenditures not including capital outlay. The fund balance policy is to reserve at least a 26% balance. This is an increase of the fund balance by $4,512,446, after restatements.
The auditors look to make sure there are appropriate practices to ensure balanced and true accounts of the City's financial transactions. They do this by looking at a sample of transactions to verify proper approvals were followed and by verifying some values externally with other organizations the City does business with. Based on their review, auditors will provide their findings on how well the City keeps track of its financials.
The City received the highest level of confidence from our auditors that the City's financial statements are fairly represented in the annual report and they found no significant matters or issues as stated in their Governance Letter attached and in the Independent Auditor's Report in the Annual Comprehensive Financial Report (ACFR).
Attached is the official Fiscal Year 2024-25 ACFR for the City of Schertz as of September 30, 2025. These statements show the financial performance and financial health of the City for the previous fiscal year. The presentation will be made by Jeremy G, CPA, Senior Audit Associate, of ABIP, LLP. The Audit Committee consisting of Councilmember Heyward, City Manager Steve Williams, Deputy City Manager Brian James, Assistant City Manager Sarah Gonzalez, Finance Director James Walters, and Assistant Finance Director Jessica Dycus, met on March 10, 2026 to review the audit findings and financial statements as presented by the auditor, Janet Pitman, Partner of ABIP, LLP.
The assets and deferred outflows of the City of Schertz exceeded its liabilities and deferred inflows at the close of the most recent fiscal year by $445,020,423 (net position). Of this amount, $93,407,247 (unrestricted net position) may be used to meet the City's ongoing obligations to citizens and creditors. The City's total net position increased by $67,116,291. This was greater than the increase of $28,702,437 in the prior year due to sales tax growth and additional capital contributions.
As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $231,222,254, an increase of $30,926,126 in comparison with the prior year. The primary cause of this increase was an increase in sales tax revenues that exceeded expenditure growth and additional capital contributions.At the end of the fiscal year, the combined total of the General Fund assigned and unassigned fund balances was $21,407,016 which is 44.7% of the general fund expenditures not including capital outlay. The fund balance policy is to reserve at least a 26% balance. This is an increase of the fund balance by $4,512,446, after restatements.
GOAL
Approve and file the Annual Comprehensive Financial Report for FY 2024-25.
COMMUNITY BENEFIT
Filing this document meets required guideliens and meetst he standard of financial transparency for the City.
SUMMARY OF RECOMMENDED ACTION
Approval of Resolution 26-R-044 Approving the Annual Comprehensive Financial Report for FY 2024-25
RECOMMENDATION
Staff and the Audit Committee recommend approval of Resolution 26-R-044.