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Grosse Pointe City – The auditors of Grosse Pointe City again gave the municipality a clean account of financial health.
“We want to emphasize that (the audit) is an unqualified or unchanged opinion,” said Martin Olejnik, of Plante Moran, while delivering the results of the independent investigation of the financial data of the city for the tax year of 2024 . . “That means that you can rely on all figures.”
An unqualified or non -modified opinion is sometimes also called a clean opinion.
“The books were in flawless state. … (director of the city financing/treasurer) Kimberly Kleinow has done it great, as always, “Olejnik said the municipal council of Grosse Pointe during a municipal council meeting.
Last year the city enjoyed a peak in its investment income and earned $ 68,906. That is a leap from 2023, when the city only earned $ 17,967 from its investments.
“That was only due to a change in market conditions,” said Plante Moran Auditor Dean Hewines.
The general non -cash -up fund balance of the city increased by more than $ 100,000, from $ 1.72 million in the financial year 2022 to 2023 to just under $ 1,835 million in the financial year 2023 to 2024.
About how much the city would have to keep in its not -ing fund balance – sometimes referred to as a rainy day fund – Plante Moran Auditor Spencer Tawa told the Council: “It really depends on the needs of the city.”
Having a strong fund balance can improve the bonding of a municipality, which means that it would be eligible for lower interest rates for borrowing for large projects or expenditures. A solid fund balance also means that a community has money available for emergency situations.
From June 30, 2024 – the end of the last tax year – the city’s pension was just over 99% financed.
Tawa said: “This is not the case” with other cities.
“The city has done great work in the course of the years of financing the (pension) plan,” said Tawa.
Retired health care was only 13.2% financed, but that has increased steadily in recent years; It was only 6.2% financed in 2020. Tawa said the state did not need contributions to the retired health care obligation in the past, and many communities covered these costs based on pay-as-you-go.
“There is clear money to go,” Tawa said about the city who tried to place extra dollars in the direction of retired health care. “The financing level has risen over time.”
Olejnik said the state wants every municipality to be financed more than 40% in retired health care.
“There are not many that are fully financed,” said Olejnik.
He said that many cities remain 0% financed.
“This was under the radar for all congregations,” said city councilor Christopher Walsh. “Suddenly (the state) jumped (this requirement) on us. … we tackled it (but) there was no way that the shortage would be closed soon. “
Walsh acknowledged the praise the auditors had for Kleinow and city manager Joseph Valentine.
“To make the auditors say that about your work – that is encouraging to hear,” said Walsh.
