In a nutshell: Katy earned an unmodified, or “clean” opinion from accounting firm Whitley Penn, LLP, said City Auditor Lupe Garcia in a May 22 meeting. He highlighted the city’s compliance with the financial reporting standards, lack of material weaknesses and no reported significant deficiencies.
For FY 2022, which ended Sep. 30, 2022, Katy’s net position was $186 million. The city's total net position increased by $10.2 million year-over-year.
Net position represents the city’s total assets minus its current liabilities and long-term debt.
This was concluded from deducting the city’s liabilities, which totaled $53.4 million, from its total assets, which were $239.4 million, said Garcia. Majority of Katy’s liabilities were composed of unearned revenue, other post-employment benefit debt and bonds payable, he said.
“We did have some debt activity during the year, [where the city] issued $3.5 million in bonds,” Garcia said. “That was offset by scheduled principal payments, so there was a slight increase overall in general obligation bonds.”
By the numbers: Conservative projections of revenue and expenditures contributed to the city’s good financial standing, per the report from Garcia.
- Revenues of $40.8 million were greater than final budgeted revenues by $3.8 million
- Expenditures of $33.2 million were less than final budgeted expenditures by $3.9 million
- Revenues and other sources exceeded expenditures by $4.9 million
