Presentation: 2025 Audit

Presented December 2, 2025
By HintonBurdick CPAs & Advisors
City of El Mirage, Arizona
Fiscal Year 2025
Audit Presentation
1

• “Our responsibility is to express an opinion on [these] 
financial statements based on our audit... Those 
standards require that we plan and perform the audit to 
obtain reasonable assurance about whether the 
financial statements are free from material 
misstatement.”
• We conducted our audit in accordance with 
• auditing standards generally accepted in the United States of 
America 
• and the standards applicable to financial audits contained in 
Government Auditing Standards, issued by the Comptroller 
General of the United States
Financial Audit
2

• Independent Auditors Report (pg. 1-3).
• Unmodified or “clean opinion” 
• Report on Compliance and on Internal Control over 
Financial Reporting (pg. 131-132).
• No material weaknesses noted.
• No significant deficiency noted.
•  State Compliance Report (pg. 133).
• Unmodified or “clean opinion”
• No reportable findings.
• Annual Expenditure Limitation (separate)
• Spending was below the limit.
• Report on Compliance for Each Major Program (Single 
Audit, separate)
• Pending
Audit Reports
3

•Total net position (equity) was $249.7 million at 
June 30, 2025, (pg. 19).
•Over time, increases or decreases in net position 
are an indicator of whether the financial health of 
the City is improving or deteriorating.
Government Wide Financial Highlights
4

•Total net position increased by $24.2 million (pg. 
20).
• Governmental activities increased by $21.3 million and Business-
type activities increased by $2.9 million (Water-Wastewater-Refuse). 
Government Wide Financial Highlights
5

•Governmental capital assets increased by $4.1 
million, net of accumulated depreciation. 
•Additions were $8.7 million, disposals were $77 
thousand, and depreciation was $4.5 million  (pg. 
43).
•Significant governmental capital asset additions:
• Dysart Road Improvements - $5.5 million current year expenditures, 
total completed project costs $18.8 million
• Land Acquisition $1.9 million
Government Wide Financial Highlights
6

•Business-type capital assets increased by $570 
thousand.  Additions were $3.5 million and 
depreciation was $2.9 million  (pg. 44).
•Significant business-type capital asset additions:
• Public Works Facility 
• Water Improvements $794 thousand FY25 costs, $1.4M total completed 
project costs
• Sewer Improvements $800 thousand FY25 costs, $1.4 total completed 
project costs. 
• Water Production Facility Rehab Program $366 thousand FY25 
costs, still in construction in progress. 
• 1st Avenue Drainage Improvements $250,000
Government Wide Financial Highlights
7

•Total Governmental long-term liabilities decreased 
by $4.6 million to $30.7 million at June 30, 2025, 
(pg. 45).
• Regularly scheduled debt service payments 
• 1.4 million bonds 
• $369 thousand subscription liabilities.
• Net Pension/OPEB Liabilities decreased by $2.8 million.
Government Wide Financial Highlights
8

•Total Business-type long-term liabilities 
decreased by $1.5 million to $13.5 million at 
June 30, 2025, (pg. 44).
• Regularly scheduled debt service payments were $1.5 
million.
Government Wide Financial Highlights
9

• The total fund balance for the General Fund increased 
from $83.6 million to $94.4 million. The fund balance 
is 224% of total General Fund expenditures (pg. 23).
• The General Fund reported revenues in excess of 
expenditures of $10.8 million including net transfers 
in of $2.5 million.
• Revenues received in the General Fund were more 
than the final budget by $9.3 million which was mainly 
due to City sales tax and investment income. 
• Actual expenditures were $11.6 million less than the 
final budget (pg. 82-83).
Fund Financial Highlights – General Fund
10

• Special Projects Fund Balance increased by $170 thousand (pg. 
85).
• The fund had $1.5 million in revenues and $1.3 million in 
expenditures. (pg. 85).
• Streets (Capital Projects) Fund Balance decreased by $1.0 
million (pg. 88).
• The fund had $4.4 million in revenues and $5.5 million in 
expenditures.  (pg. 88).
Fund Financial Highlights  - Governmental
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• All of the City’s enterprise funds reported operating income 
in fiscal year 2025, (pg. 26).
• All of the City’s enterprise funds reported positive net 
income in fiscal year 2025, (pg. 26).
• The overall change in net position for all of the enterprise 
funds was an increase of $2.9 million (pg. 26).
• Cash flows from operating activities were positive for all of 
the enterprise funds (pg. 27).
Fund Financial Highlights - Proprietary 
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The General fund shows a healthy and increasing balance sheet 
which is reported on the modified accrual basis, which basis 
does not reflect long-term debt or capital assets. 
13
44,914,380 
52,116,689 
65,835,132 
86,382,821 
97,019,868 
1,545,622 
1,297,375 
1,214,256 
1,753,602 
1,636,364 
43,331,265 
49,630,610 
63,504,842 
83,570,196 
94,397,828 
 -
 20,000,000
 40,000,000
 60,000,000
 80,000,000
 100,000,000
 120,000,000
2021
2022
2023
2024
2025
Dollars
Year
CITY OF EL MIRAGE
GENERAL FUND BALANCE SHEET TREND
Total Assets
Total Liabilities
Total Fund Equity

The General Fund shows a strong cash position.  The unrestricted cash 
represents 232% of total General Fund expenditures.
14
- 
- 
- 
- 
- 
43,805,437 
48,538,306 
61,759,182 
81,650,292 
93,500,653 
 -
 20,000,000
 40,000,000
 60,000,000
 80,000,000
 100,000,000
2021
2022
2023
2024
2025
Dollars
Year
CITY OF EL MIRAGE
GENERAL FUND CASH TREND
Restricted Cash and Unrestricted Cash
Restricted Cash
Unrestricted Cash

The General fund is normally expected to break even over time.  The 
City of El Mirage’s General fund has reported excess revenues over 
expenditures (including transfers) for all of the last five fiscal years. 
15
35,479,806 
37,320,204 
44,956,020 
58,100,565 
53,020,705 
24,313,715 
31,020,859 
31,081,788 
38,035,211 
42,193,073 
 -
 10,000,000
 20,000,000
 30,000,000
 40,000,000
 50,000,000
 60,000,000
 70,000,000
2021
2022
2023
2024
2025
Dollars
Year
CITY OF EL MIRAGE
GENERAL FUND
Revenue and Expenditure Trend
Revenues
Expenditures

Sales tax revenues have increased by 46.25% over the last five fiscal years with a        
-3.14% decrease in fiscal year 2025.
16
$13,385,017 
$14,760,486 
$15,809,684 
$20,210,056 
$19,576,235 
 $6,000,000
 $8,000,000
 $10,000,000
 $12,000,000
 $14,000,000
 $16,000,000
 $18,000,000
 $20,000,000
 $22,000,000
2021
2022
2023
2024
2025
CITY OF EL MIRAGE
Sales Tax Revenue

Intergovernmental revenues (primarily State income tax, Auto in lieu, and Urban revenue 
sharing,) have increased by 37.05% over the last five years and decreased by 10.09% since 
last year. 
Property tax has increased by 28.91% over the last five years and 6.59% since last year.
Franchise tax has had an overall increase of 60.22% in the last five years with a 12.11% 
increase from the prior year. 
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2,326,061 
2,622,006 
2,727,889 
2,813,285 
2,998,595 
11,095,571 
11,490,873 
14,004,737 
16,912,361 
15,206,201 
772,317 
761,830 
936,164 
1,103,749 
1,237,374 
 $-
 $2,000,000
 $4,000,000
 $6,000,000
 $8,000,000
 $10,000,000
 $12,000,000
 $14,000,000
 $16,000,000
 $18,000,000
2021
2022
2023
2024
2025
CITY OF EL MIRAGE
Other Significant Revenues
Property Taxes
Intergovernmental
Franchise Taxes

The HURF fund is expected to break even over time as resources are 
accumulated and expended on street projects.
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2,479,211 
2,672,172 
2,762,951 
2,920,106 
2,992,372 
2,406,723 
3,023,007 
2,847,392 
3,044,825 
3,448,107 
 -
 1,000,000
 2,000,000
 3,000,000
 4,000,000
2021
2022
2023
2024
2025
Dollars
Year
CITY OF EL MIRAGE
STREETS - HIGHWAY USER FUND
Total Revenues and Total Expenditures
Revenues
Expenditures

It is common for resources to accumulate in the HURF 
fund and then be used on large projects.  Cash increased 
by 28% in the current fiscal year.
19
1,962,578 
1,997,212 
2,275,618 
3,409,588 
4,370,632 
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
2021
2022
2023
2024
2025
Dollars
Year
CITY OF EL MIRAGE
STREETS - HIGHWAY USER FUND 
Cash Trend
Cash

The Streets fund is expected to break even over time as resources are 
accumulated and expended on street projects.
20
836,769 
3,591,221 
517,497 
3,440,074 
4,448,355 
613,229 
697,597 
939,752 
11,238,461 
5,487,545 
 -
 2,000,000
 4,000,000
 6,000,000
 8,000,000
 10,000,000
 12,000,000
2021
2022
2023
2024
2025
Dollars
Year
CITY OF EL MIRAGE
STREETS FUND - CAPITAL PROJECTS
Total Revenues and Total Expenses
Revenues
Expenditures

Street fund cash is expected to fluctuate significantly over 
time, as resources for large capital projects are accumulated 
and then used.
21
14,760,073 
17,677,287 
17,250,810 
11,318,242 
8,405,450 
 -
 4,000,000
 8,000,000
 12,000,000
 16,000,000
 20,000,000
2021
2022
2023
2024
2025
Dollars
Year
CITY OF EL MIRAGE
STREETS FUND - CAPITAL PROJECTS
Cash Trend

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Overall governmental expenditures are down 12% mainly due to 
decreased capital outlay.
General government expenditures are down due to a project funded 
by grant funding in FY24 that was completed and did not reoccur in 
FY25.
Capital outlay is down due to normal fluctuations in projects.

23
The Water enterprise fund is reported on the full accrual basis and 
should show revenues in excess of expenditures in order to provide for 
depreciation and future capital requirements.  Four of the last five years 
there has been a net income.
9,698,519 
11,273,248 
10,775,923 
13,147,495 
12,974,675 
9,287,410 
11,634,589 
10,420,556 
11,596,847 
11,812,257 
 -
 4,000,000
 8,000,000
 12,000,000
 16,000,000
2021
2022
2023
2024
2025
Dollars
Year
CITY OF EL MIRAGE
WATER FUND
Total Revenues and Total Expenses 
Revenues
Expenses

24
The Water fund has had a strong cash position.  It 
increased by 8% in the last 5 years and 6% since the prior 
year.
18,857,401 
16,920,742 
17,570,154 
19,181,523 
20,425,333 
 -
 4,000,000
 8,000,000
 12,000,000
 16,000,000
 20,000,000
 24,000,000
2021
2022
2023
2024
2025
Dollars
Year
CITY OF EL MIRAGE
WATER FUND - Cash Trend
Total Cash

25
The Sewer enterprise fund is reported on the full accrual basis and should 
show revenues in excess of expenditures in order to provide for 
depreciation and future capital requirements. The Sewer fund has reported 
net income for last five fiscal years. 
4,708,331 
4,896,009 
5,219,935 
5,651,512 
6,503,993 
4,186,974 
4,877,119 
5,218,312 
5,279,607 
5,341,465 
 -
 1,500,000
 3,000,000
 4,500,000
 6,000,000
 7,500,000
2021
2022
2023
2024
2025
Dollars
Year
CITY OF EL MIRAGE
SEWER FUND
Total Revenues and Total Expenses
Revenues
Expenditures

26
The Sewer fund cash has remained fairly steady over the last four 
years. There was a 3% decline in FY25.
10,013,741 
8,693,147 
8,572,475 
8,988,180 
8,705,928 
 7,500,000
 8,000,000
 8,500,000
 9,000,000
 9,500,000
 10,000,000
 10,500,000
2021
2022
2023
2024
2025
Dollars
Year
CITY OF EL MIRAGE
Sewer - Cash Trend
Cash

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Questions?
Please contact Jennifer Frank or Crimson Singleton
Phone: 888-566-1277   
Email: JFrank@hintonburdick.com 
Email: csingleton@hintonburdick.com

Thank you for the opportunity to work with the City.
Thanks to all those who assisted us with this year’s audit.  
Thank You!
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