The Fort Pierce City Commission accepted the city’s FY2024 comprehensive annual financial report on April 21 after auditors delivered a clean opinion, then several commissioners urged the administration to begin an immediate, detailed review of enterprise funds that are operating at a loss.

Auditor Mark Barnes told the commission the firm issued a clean opinion and reported no findings. “Clean opinion. We had no findings. Staff does a fantastic job,” Barnes said in his summary of the audit. His firm highlighted a stronger balance sheet for the city overall, a decline in long-term debt and an increase in general-government revenues, driven in part by higher property values.

Barnes presented comparative fund information: cash and investments increased year over year; the city reduced debt by roughly $11 million; and overall fund equity rose. The audit noted operating results varied across enterprise funds. The golf course and marina showed improved results and consistent fund balances; solid waste and stormwater results were largely stable; the Sunrise Theater saw revenue increases but continued operating losses; the animal adoption center recorded a significant operating deficit (more than $900,000 in payroll-related costs and operating expenses noted by the auditor).

After the presentation commissioners seized on the discretionary and recurring losses in enterprise funds. Commissioner Johnson and Commissioner Broderick urged an expedited analysis of fees, user charges and cost structures. “We can fix this internally,” Broderick said, urging the city manager to identify loss leaders and propose adjustments to fees and services where feasible. Commissioners flagged refuse tipping fees, fuel and personnel costs as drivers of rising enterprise costs and called for transparent reporting so the public can understand what services actually cost.

City Manager Chastain said staff will perform a deep dive into enterprise funds and the general fund, analyze business models, fees and potential efficiencies and return with options. He said meetings with department heads and finance staff are underway and committed to producing data for commission consideration before major budget decisions.

The commission voted unanimously to accept the FY2024 report (Resolution 25-R36). Commissioners requested that staff include proposed fee adjustments, service-level alternatives and potential partnerships (including county and nonprofit options for the animal-adoption function) in future budget discussions.