City Council Staff Report Page 1 of 2 January 13, 2026
Staff Report
Agenda Item No. 4.4
DATE: January 13, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Receiving and Accepting the Audited Financial Statements for the Fiscal Year Ended June 30, 2024 (FY 2023-24)
EXECUTIVE SUMMARY
Staff recommends that the City Council adopt the attached resolution to receive and accept the Audited Financial Statements for the Fiscal Year Ended June 30, 2024 (FY 2023-24).
STRATEGIC PLAN ALIGNMENT
This agenda item does not align directly with the Strategic Plan.
BACKGROUND
Annually, the City of Union City is required to obtain an independent audit of the City's fiscal activities. The City’s independent auditor, Badawi & Associates, has completed its audit of the City’s FY 2023-24 financial activity and has assisted the Finance staff in preparing the financial statements.
DISCUSSION
On December 23, 2025, the City Council Finance Subcommittee met with staff and Badawi & Associates, the City’s Auditors, to review the results of the financial audit for the Fiscal Year Ended June 30, 2024 (FY 2023-24). The Audited Financial Statements are attached to this staff report, and a copy of the PowerPoint presentation made by Badawi & Associates at the Finance Committee meeting is also attached. The auditor’s opinion on the financial statements is an “unmodified opinion,” which means that the auditors have found that the City’s financial statements are presented fairly in all material respects.
Agenda Item No. 4.4
City Council Staff Report Page 2 of 2 January 13, 2026 3 3 Provided below is a summary of the General Fund results for the fiscal year ended June 30, 2024:
General Fund: FY 2023-24
6-30-2022 Unrestricted Fund Balance 47,860,069
FY 2023-24 Revenues 84,673,306
FY 2023-24 Expenditures $85,317,839
Change in Fund Balance (644,533)
6-30-2024 Unrestricted Fund Balance 48,632,224
Unrestricted Fund Balance as a % of Expenditures 60.0%
Fund Balance – Approximate Months of Coverage 7 months
The Government Finance Officers Association (GFOA) recommends that cities have a fund balance sufficient to cover operations for 2 months in case of emergencies; the City of Union City has enough General Fund balance to cover our operations for 7 months.
While the City does have a significant general fund balance (reserves), the long-term financial forecast still projects a structural deficit. The recent passage of the business license tax measure, which restructures our outdated business license tax, will help reduce the structural deficit but will not entirely eliminate it, especially given increasing costs and the pending sunset of the utility users’ tax. Staff will continue to engage with the City Council on other ways to eliminate the structural deficit.
The Audited Financial Statements for the Fiscal Year Ended June 30, 2024, were completed late due to the lingering impacts of the September 2019 cyberattack, a significant software migration, and staff turnover. Finance staff are currently working on the FY 2024-25 year-end closing and annual audit, and our goal is to produce the FY 2024-25 financial statements by March 2026.
FISCAL IMPACT
There is no fiscal impact as a result of accepting the Audited Financial Statements for the Fiscal Year Ended June 30, 2024 (FY 2023-24).
RECOMMENDATION
Staff recommends that the City Council adopt the attached resolution to receive and accept the Audited Financial Statements for the Fiscal Year Ended June 30, 2024 (FY 2023-24).
Submitted by: Chu Thai, Finance Director
Attachments
1. Draft Resolution
2. Exhibit A - Basic Financial Statement for FY Ended June 30, 2024
3. PowerPoint Presentation – Badawi and Associates