News Flash

Audit shows 'clean bill of financial health for the City'

City of Midland News Release Posted on April 10, 2025

CITY: AUDIT SHOWS NO FINDINGS FOR SECOND-STRAIGHT YEAR

(April 10, 2025)

MIDLAND, TEXAS -- For the second straight year, the City of Midland reported no findings as a result of the annual audit performed by Forvis Mazars.

Finance Director Christy Weakland told the Midland City Council on Tuesday (April 8, 2025) the news of zero findings for fiscal year 2024. The annual audit also showed increases in the City’s net position -- $65.5 million in government funds and $51.2 million in business-type funds.

The annual audit results act as a “clean bill of financial health for the City” as the City officials are managing finances and operations in compliance with applicable laws, regulations and accounting standards.

Weakland also said last year’s “no findings” report was the city’s first in more than 20 years.

“It helps maintain strong financial ratings,” City officials reported.

The City maintains an AAA rating with Fitch Ratings, Inc. and an Aa1 rating with Moody’s on tax-supported debt.

Weakland also told the City Council that sound governance and fiscal management are in line with the City of Midland’s Strategic Plan – Goal 5.7, which calls for ensuring continued financial stability and accountability and maintaining financial transparency.

Weakland reminded city leaders that recent financial highlights also included solving the firefighters' retirement fund issue without dipping into reserves, by avoiding bond debt and by putting systems in place that should prevent the fund from being insolvent in the future.

She also showed:

  • The Golf Course and Airport Funds are self-sufficient and do not require help from the City of Midland’s General Fund, which is supported by property and sales tax,
  • The City has created a Parks maintenance fund, which will help the City be proactive in the maintenance of Parks investments taking place,
  • The use of Chapter 380 agreements and tax increment reinvestment zones (TIRZs) to provide revenue streams for certain areas like downtown and the Scharbauer Sports Complex) and tie expenses to those revenue streams,
  • Audits of local hotels show that around 40% owe the City of Midland more revenue than previously reported. The recent study showed around 20 hotels studied actually owed around $500,000 in Hotel-Motel tax funding.

City officials also stated that the City of Midland’s Popular Annual Financial Report (PAFR) is now available for residents to see online.

To view the PAFR, visit https://midlandtexas.gov/231/Finance-Budget