A Closer Look at Our City’s Financial Health: The Full Story Beyond the Audit
The recent independent audit presentation by Pervis Gray for the fiscal year ending September 30, 2024, was an important step in evaluating the financial operations of our city. The results show commendable progress: a clean (unmodified) audit opinion, improved fund balances, and stronger performance in many areas compared to the prior year. These are encouraging signs, and I commend city staff for their diligence in addressing previous findings and improving financial reporting processes.
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The Good News: Clean Audit, Growing Revenues
Here are the highlights:
- A $1.8 million increase in General Fund Balance
- Unassigned Fund Balance now at 47% of expenditures, indicating a strong financial cushion
- Increased revenues across utilities, taxes, and intergovernmental support
- A $12 million gain in Enterprise Fund net position, driven largely by non-operating revenues and internal transfers
- Our city pension plan is now over 100% funded, a rare and notable milestone
These metrics signal that our current operations are in good shape, with improved stability and fiscal responsiveness.
The Hidden Story: What the Audit Doesn’t Show
While the audit provides a snapshot of current performance, it doesn’t tell the full story, particularly when it comes to long-term obligations. Most notably, the audit references our city’s major Wastewater Treatment System Project in Note 14, but the financial statements do not yet reflect the full cost.
Winter Springs is facing approximately $150 million in future infrastructure investments, costs that include:
- Debt service obligations
- Long-term infrastructure upgrades for water, wastewater, and stormwater systems
- Planning for population growth and regulatory compliance
These are critical investments that will shape the future of our community. But unless they are proactively incorporated into our financial planning, they may create budgeting pressures or service disruptions down the line.
Infrastructure Must Be Counted in Our Financial Reality
While it’s important to recognize the improvements we’ve made in fiscal discipline, we must not lose sight of the bigger picture. Clean audits are important, but accurate financial forecasting is even more vital. If we don’t account for these looming capital costs now, we risk misrepresenting the true state of our city’s finances.
As your Commissioner, I remain committed to transparency, smart growth, and fiscal responsibility. That means celebrating our wins, while also addressing our challenges head-on.
Let’s continue to push for clear communication, forward-thinking budgets, and sustainable infrastructure planning. Together, we can build a Winter Springs that’s both financially strong and future-ready.