Sedona Receives Clean Audit, Maintains Robust Fiscal Health

City boasts $29K in assets per resident, exceeding financial policy targets

Mar. 28, 2026 at 10:41pm

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The city of Sedona, Arizona received a clean audit for the 2024-25 fiscal year, with the city's total net position increasing by $18.7 million to $284.2 million. The audit highlighted Sedona's strong financial position, including $86.5 million in unrestricted net position, a 68.6% unassigned general fund balance, and $29,000 in assets per resident.

Why it matters

Sedona's clean audit and robust fiscal health demonstrate the city's prudent financial management, which has allowed it to maintain a high level of services and infrastructure for residents despite reliance on potentially volatile sales and bed tax revenues. The audit also identified potential risks related to cybersecurity and grant management that the city will need to monitor going forward.

The details

The audit, presented to the Sedona City Council, was conducted by accounting firm Clifton Larson Allen LLP. It found that Sedona's total net position, the difference between its assets and liabilities, increased by $18.7 million in fiscal year 2025 and $27.3 million in fiscal year 2024. The city's unrestricted net position, which can be used for ongoing obligations, stood at $86.5 million. Sedona also maintained a general fund unassigned balance of 68.6% of expenditures, well above the city's 30% policy minimum.

  • The audit was presented to the Sedona City Council on March 10, 2026.
  • Sedona approved its $103,291,695 budget on June 24, 2025.

The players

Barbara Whitehorn

Sedona's Deputy City Manager.

Jean Marie Dietrich

Signing director at Clifton Larson Allen LLP, the accounting firm that conducted the audit.

Renée Stanley

Sedona's accounting manager.

Pete Furman

Sedona City Councilman.

Brian Fultz

Sedona Vice Mayor.

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What they’re saying

“I look at it as large reserves, annual surpluses, a clean audit, low finan­cial risk, all these things you found in audit. It's amazing fiscal performance that I think reflects the culture of folks that work here in City Hall, stemming from the city manager on down through the Finance Department and going into every department this people take these fiscal performance of our city seriously, and it's a very it's a pleasure to sit here on City Council and accept reports like this.”

— Pete Furman, Sedona City Councilman

“I tried to explore a new math analysis of the ACFR this year, and I stumbled across looking at net posi­tion per population, and I see that we have $29,000 in assets per resident, which I believe is just an extraordinarily high number for a small city like Sedona, and so everybody in this town should just be absolutely happy and proud of the financial position of our city.”

— Pete Furman, Sedona City Councilman

“AI is assisting with grants management in that it is putting workflows in place that is increasing segregation of duties, AI is assisting with reading and interpreting documents. We always have to read what AI reads, because we trust but verify.”

— Jean Marie Dietrich, Signing director, Clifton Larson Allen LLP

What’s next

The city will need to monitor potential risks related to cybersecurity and grant management identified in the audit, including exploring the use of AI-powered tools to assist with grants oversight.

The takeaway

Sedona's clean audit and robust fiscal health, including high reserves and assets per resident, demonstrate the city's prudent financial management and commitment to maintaining a high quality of life for its residents despite potential economic volatility.