A recently completed annual audit of city budgeting and finances showed Scranton ended 2025 with a $3.6 million surplus in its general fund, the mayor announced.

The 12-page audit of the fiscal year ending Dec. 31, 2025, which was done by independent accounting firm CliftonLarsonAllen LLP of New York City, also did not have any negative findings on financial processes, and it did not identify any “material weaknesses,” which are severe flaws in internal controls.

An annual audit reviewing a municipality’s finances, including revenues, expenditures and overall financial position, is meant to serve as a timely accounting of financial performance. For the second consecutive year, Scranton’s annual audit for the prior fiscal year was completed by a Sept. 30 deadline.

“I’m proud of our team for all of the effort to get us here. We’ve worked hard to bring our city from the brink of bankruptcy to an A- credit rating and consistent budget surpluses,” Mayor Paige Cognetti said in an announcement issued late Thursday night. “This latest audit again reflects the progress we’ve made in managing taxpayer dollars responsibly and transparently. Scranton residents deserve a government they can trust and that is accountable for every dollar. These results show our efforts are paying off.”

She attributed the $3.6 million surplus to “continued strong revenue growth and expenditure controls across city departments, including a robust procurement process to provide contracts to affordable, qualified contractors.”

Other details in the announcement included:

• The city’s tax base has grown through new housing and business development. In 2025, 74 new businesses opened. The city also has issued issued nearly 14,000 building permits since 2022, and has had an estimated 1,118 housing units created since 2020.

• Cognetti’s administration has reduced fees for new building permits and inspection fees and has modernized the permit application process.

• Through “strategic grant stacking,” the city also has completed millions in park renovations and infrastructure improvements.

• The city has closed numerous outdated “special city accounts” which were not assigned to specific projects or expenses. With such accounts closed and consolidated, the administration has continued to provide clear sources and uses of funds.

• While the 2025 audit focuses on that fiscal year, it also noted the upgrade in the city’s long-term credit rating to “A-” with a stable outlook that occurred in January 2026.

The 2025 audit is available for review online at scrantonpa.gov/2025-single-audit-report-and-final-financial-statement/.

Meanwhile, the city’s proposed 2027 operating budget is due for submission from the mayor to Scranton City Council by Nov. 15.