The City Council of Socorro convened on July 3, 2025, to discuss the city’s financial performance for the fiscal year 2024, focusing on the general fund, capital improvement fund, and audit results. The meeting highlighted a successful audit outcome, with the city receiving an unmodified opinion, indicating that its financial statements are fairly stated. This marks a continuation of positive audit results over the past several years.

The general fund, which is crucial for assessing the city’s financial health, reported total revenues of $15.5 million, exceeding budget expectations by nearly $2 million. This surplus was attributed to higher-than-anticipated collections in property and sales taxes, as well as increased planning and zoning fees due to ongoing construction and growth in the area. Actual expenditures for the general fund were $14.6 million, resulting in a surplus of approximately $900,000.

In contrast, the capital improvement fund is facing challenges, having nearly depleted its resources due to ongoing large-scale projects, including several funded by TxDOT and ARPA grants. The city has had to borrow from the general fund to cover expenses, raising concerns about the sustainability of funding for future projects. The council was advised to monitor the flow of funds between the general and capital improvement funds closely to avoid potential cash flow issues.

The meeting also addressed the city’s overall financial position, with total assets increasing to $90 million and liabilities decreasing by 13%. This trend indicates a strengthening financial position, despite the pressures from capital expenditures. The council discussed the importance of maintaining healthy reserves and ensuring that the general fund is not overly relied upon for capital projects.

The audit report revealed no findings of fraud or abuse, a significant improvement from the previous year, which had three findings. Recommendations from the audit included enhancing monitoring of subrecipients for ARPA funds and updating the city’s investment policy to align with current practices.

Overall, the meeting underscored the city’s positive financial trajectory while highlighting the need for careful management of capital improvement funding to ensure continued growth and infrastructure development.