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During a special meeting Jan. 26, the Fallon City Council heard highlights from, and unanimously approved, the city’s annual Comprehensive Financial Report for the year ending June 30.
City Clerk-Treasurer Sean Richardson and Teri Gage of Eide Bailly CPA and Business Advisors presented the independent auditor’s report which was, Richardson said, “truly a team effort.”
“I’m very happy to say the city of Fallon has what we call a ‘clean’ audit opinion,” Gage said. “It’s the highest level that can be achieved for an unmodified audit opinion.”
Gage shared significant highlights from the report. Cash and Investments decreased by $6.2 million when compared to the previous fiscal year with the total expenditure of Capital Asset Additions about $11.9 million. This amount covers projects completed throughout the city during the year, including $1.1 million for electric meter and transformer projects, $3.1 million in road projects, $1.5 million for the Oats Park splash pad and pickleball courts and $2 million in sewer and water projects.
The city ended the year with a balance of $3.6 million in the general fund, down $2 million from the previous fiscal year total of $5.6 million. Gage said the capital projects expenditures were the primary reason for the decrease.
The general fund also ended at $2.6 million over the originally budgeted amount of $19.1 million. The city had expected to use more of the American Rescue Plan Act funds in the general fund, but ended up transferring those to the water and sewer funds.
Gage said the ARPA funds transfer caused a “significant difference” in the revenue when compared to the $3.8 million in ARPA funds utilized in 2020 and $1.8 million in 2022.
The ending fund balance currently sits at 21% of total expenditures which is well above the auditing firm’s recommended 8.3%.
Gage said that due to a “great job” done by the city staff, the audit did not have any adjusting journal entries.