Overview
Gray's auditor, McNair, McLemore, Middlebrooks & Co., LLC (Macon, Georgia), issued an unmodified opinion: the FY2025 financial statements present fairly, in all material respects, the City's financial position as of December 31, 2025. The City reports two kinds of activity: governmental activities (general government, public safety, public works and the like) and business-type activities (the Water and Sewer Fund and the Sanitation Fund).
In FY2025 the City as a whole lost net position: governmental activities gained $299,561, but business-type activities lost $537,089, for a combined decrease of $237,528 — from $15,445,332 to $15,207,804. The General Fund itself, by contrast, grew: it took in more than it spent and ended the year with a $5,018,164 fund balance, up from $4,668,914.
Source: City of Gray FY2025 Annual Financial Report, Independent Auditor's Report (May 15, 2026) and Management's Discussion and Analysis — audited FY2025 report (PDF).
At a glance — FY2025 audited
Source: FY2025 audit, Management's Discussion and Analysis and Statement of Net Position — audited FY2025 report (PDF).
Net position — December 31, 2025
Net position is what remains after liabilities and deferred inflows are subtracted from assets and deferred outflows. Each column below sums exactly to its total, and the city total equals assets $27,555,954 plus deferred outflows $458,691, less liabilities $12,803,261 and deferred inflows $3,580.
| Component | City total |
|---|---|
| Net investment in capital assets | $9,152,075 |
| Restricted | $1,824,952 |
| Unrestricted | $4,230,777 |
| Total net position | $15,207,804 |
| Net position by activity | Governmental | Business-type | Total |
|---|---|---|---|
| Net investment in capital assets | $3,032,131 | $6,119,944 | $9,152,075 |
| Restricted | $1,090,934 | $734,018 | $1,824,952 |
| Unrestricted | $4,154,803 | $75,974 | $4,230,777 |
| Total | $8,277,868 | $6,929,936 | $15,207,804 |
Restricted detail (sums to the $1,824,952 above): capital outlay $1,079,768, debt service $734,018, law enforcement $10,274, tourism $892.
Change in net position for the year: governmental activities +$299,561 (from $7,978,307 to $8,277,868) and business-type activities −$537,089 (from $7,467,025 to $6,929,936), for the combined −$237,528 noted above.
Source: Statement of Net Position and Statement of Activities — audited FY2025 report (PDF).
General Fund — FY2025 actuals vs. final budget
The General Fund is the City's chief operating fund. It took in $3,795,068 against a final budget of $3,491,046 ($304,022 over), and spent $3,352,433 against a final budget of $3,529,994 ($177,561 under) — so the fund balance grew rather than shrinking.
Revenues — $3,795,068
| Source | Actual |
|---|---|
| Taxes | $3,047,126 |
| Licenses and permits | $97,021 |
| Intergovernmental | $196,994 |
| Fines and forfeitures | $307,217 |
| Investment earnings | $97,057 |
| Miscellaneous | $49,653 |
| Total revenues | $3,795,068 |
Taxes detail — $3,047,126
| Tax | Actual |
|---|---|
| Property tax | $1,341,160 |
| Local option sales tax | $747,297 |
| Insurance premium tax | $379,006 |
| Franchise tax | $300,019 |
| Motor vehicle tax | $156,109 |
| Beer and wine tax | $98,485 |
| Recording intangible taxes | $16,309 |
| Real estate transfer tax | $4,192 |
| Penalties and interest | $3,987 |
| Mobile home tax | $562 |
| Total taxes | $3,047,126 |
Expenditures — $3,352,433
| Function | Actual |
|---|---|
| General government | $876,311 |
| Judicial (municipal court $130,609 + public defender $9,000) | $139,609 |
| Public safety (police $1,297,341 + fire $141,803 + dispatching $84,233 + prisoner custody $5,119 + emergency management $1,000) | $1,529,496 |
| Public works — highways and streets | $499,665 |
| Health and welfare — community center | $2,286 |
| Housing and development (downtown development $158,949 + Main Street Gray $129,149 + planning and zoning $9,600 + Better Hometown $7,368) | $305,066 |
| Total expenditures | $3,352,433 |
Fund balance walk
| Item | Amount |
|---|---|
| Beginning balance, Jan 1, 2025 | $4,668,914 |
| Revenues over expenditures | $442,635 |
| Other financing sources (uses), net (sale of assets $6,225 less transfer to Water and Sewer Fund $99,610) | −$93,385 |
| Ending balance, Dec 31, 2025 | $5,018,164 |
That ending balance is unassigned $5,009,333 plus assigned $8,831 — the two sum exactly to $5,018,164.
Source: General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual — audited FY2025 report (PDF).
All governmental funds — FY2025
Beyond the General Fund, the City reports a 2021 SPLOST capital-project fund and other (nonmajor) governmental funds. Every row and column below sums to its total.
| Fund | Revenues | Expenditures | Ending balance |
|---|---|---|---|
| General Fund | $3,795,068 | $3,352,433 | $5,018,164 |
| 2021 SPLOST Fund | $685,572 | $576,939 | $1,079,768 |
| Other governmental funds | $191,211 | $198,850 | $87,559 |
| Total governmental funds | $4,671,851 | $4,128,222 | $6,185,491 |
Combined, the governmental funds took in $543,629 more than they spent ($4,671,851 − $4,128,222), less $93,385 of other financing uses, for a net fund-balance increase of $450,244 — from $5,735,247 to $6,185,491. The combined ending balance is restricted $1,090,934 plus assigned $85,224 plus unassigned $5,009,333, which sums exactly to $6,185,491.
Source: Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances — audited FY2025 report (PDF).
Enterprise funds — FY2025
The City's business-type activities are the Water and Sewer Fund and the Sanitation Fund. The Water and Sewer Fund lost money on operations and overall, partly offset by a capital contribution and a transfer in from the General Fund; the Sanitation Fund essentially broke even.
| Enterprise result | Water & Sewer | Sanitation | Total |
|---|---|---|---|
| Operating revenues | $2,357,431 | $457,084 | $2,814,515 |
| Operating expenses | $3,050,919 | $454,893 | $3,505,812 |
| Operating income (loss) | −$693,488 | $2,191 | −$691,297 |
| Nonoperating revenues (expenses), net | −$149,363 | $51 | −$149,312 |
| Capital contributions | $203,910 | $0 | $203,910 |
| Transfers in (from General Fund) | $99,610 | $0 | $99,610 |
| Change in net position | −$539,331 | $2,242 | −$537,089 |
| Beginning net position | $7,438,926 | $28,099 | $7,467,025 |
| Ending net position | $6,899,595 | $30,341 | $6,929,936 |
Water & Sewer operating revenues — $2,357,431
| Source | Amount |
|---|---|
| Water sales | $1,284,526 |
| Sewerage fees | $964,047 |
| Connection fees | $66,875 |
| Penalties and other fees | $41,283 |
| Miscellaneous | $700 |
| Total operating revenues | $2,357,431 |
Water & Sewer operating expenses — $3,050,919
| Expense | Amount |
|---|---|
| County water expense | $597,419 |
| Depreciation | $571,247 |
| Salaries | $565,653 |
| Contracted services | $425,015 |
| Employee benefits | $292,068 |
| Maintenance and supplies | $198,394 |
| Utilities | $149,402 |
| Other operating expenses | $118,743 |
| Insurance | $83,356 |
| Professional fees | $22,651 |
| Travel | $16,342 |
| Engineering fees | $10,629 |
| Total operating expenses | $3,050,919 |
Water & Sewer nonoperating detail: interest revenue $10,287 plus intergovernmental revenue $27,028, less interest expense $186,678, equals −$149,363. Sanitation's only operating expense is contracted services of $454,893, against garbage fees of $457,084.
Source: Proprietary Funds Statements of Net Position and of Revenues, Expenses, and Changes in Net Position — audited FY2025 report (PDF).
Debt & capital assets
All of the City's notes payable sit in the Water and Sewer Fund — Georgia Environmental Finance Authority (GEFA) loans. The three loan balances sum exactly to total notes payable.
| Notes payable (Water & Sewer) | Balance |
|---|---|
| GEFA drinking-water loan (2016; $1,729/month, 1.03%, to Aug 2037) | $227,950 |
| GEFA sewer-system loan (2018) | $238,963 |
| GEFA Wolf Creek Water Pollution Control Plant loan (2021) | $9,651,188 |
| Total notes payable | $10,118,101 |
| Due within one year | $287,664 |
| Due in more than one year | $9,830,437 |
Cross-check: capital assets, net ($19,270,176) less notes payable ($10,118,101) equals net investment in capital assets ($9,152,075) used in the Net position section.
Capital assets, net — $19,270,176
| Category | Total |
|---|---|
| Infrastructure | $15,721,951 |
| Land | $1,138,620 |
| Vehicles | $782,391 |
| Storm drainage improvements | $442,858 |
| Buildings | $435,408 |
| Water rights | $313,683 |
| Equipment | $299,308 |
| Construction in progress | $90,495 |
| Intangible right-to-use asset | $45,462 |
| Total capital assets, net | $19,270,176 |
By activity: governmental $3,032,131 plus business-type $16,238,045 equals $19,270,176. The City's capital-asset investment fell $348,331 during the year, from $19,618,507.
Questions about the report itself may be addressed to the City Clerk of Gray, P.O. Box 443, Gray, Georgia 31032, per the audit's "Request for Information" notice.
Source: Management's Discussion and Analysis (capital assets and long-term debt) and Proprietary Funds Statement of Net Position — audited FY2025 report (PDF).
Sources & notes
- Only source used: City of Gray, Georgia, Annual Financial Report for the year ended December 31, 2025 (audited; McNair, McLemore, Middlebrooks & Co., LLC; opinion dated May 15, 2026). Read the audit (PDF, UGA TED portal).
- TED "(In Process)" label: the TED portal lists this document's title with "(In Process)" appended. The document itself is signed and opined, so its figures are used as audited figures; the label is disclosed here rather than treated as a reason to discard the document.
- Not in city totals: the Downtown Development Authority is a discretely presented component unit, legally separate from the City; its net position of $1,807,364 is shown in a separate column in the audit and is NOT included in any city total on this page. The fiduciary (perpetual-care) trust fund, net position $74,319, is likewise excluded from government-wide totals.
- Sum checks: every breakdown table on this page was added up before publishing; each shown total equals the sum of its shown parts, including the net-investment cross-check in the Debt & capital section.
- What is missing: this page has no current-year budget, no FY2026 actuals, and no population, staffing, or service-level figures — the FY2025 audit does not supply them in a form used here, and none were invented. A newer verified document would be needed to update this dashboard.
- City palette: no high- or medium-confidence City of Gray palette was on file, so this page uses the neutral Peach State Pulse dark-glass theme rather than a city color.