Rochester Hills City Audit Reveals Strong Financial Position with Unmodified Opinion

The Rochester Hills City Council convened on May 12, 2025, to discuss key financial updates and community initiatives. The meeting highlighted the city's strong revenue performance and the implications of a proposed initiative aimed at eliminating property taxes in Michigan.

During the meeting, council members expressed gratitude for the city's robust revenue, which has remained stable despite past uncertainties. This financial strength is crucial as discussions arise around the "Ax My Tax" initiative, a movement led by residents seeking to abolish property taxes statewide. Council members voiced concerns about the potential devastating impact this could have on Rochester Hills, emphasizing the importance of maintaining local funding for essential services.

The council also received a presentation from the audit firm Raymond P LLC regarding the fiscal year-end 2024 annual comprehensive financial report. The audit revealed an unmodified opinion, indicating that the financial statements are reliable for decision-making. Notably, the city did not require a single audit for federal grants, as it did not exceed the threshold for federal funding.

Key financial highlights included an increase in cash investments by approximately $14 million, attributed to careful budgeting and strong operating results. Property tax revenue continued to rise, reaching about $42.5 million, while investment income also saw significant growth. However, the general fund balance decreased as part of a planned strategy to allocate funds towards capital projects, which was described as a positive move for the city's future infrastructure investments.

The meeting underscored the importance of local representation in Lansing, with council members acknowledging the unique position of having state legislators who are familiar with the city's challenges. This connection is seen as vital for advocating for Rochester Hills' interests at the state level.

In conclusion, the City Council's discussions reflect a proactive approach to financial management and community engagement, as they navigate potential changes in tax policy while ensuring the city's fiscal health remains strong. The council plans to continue monitoring the implications of the "Ax My Tax" initiative and its potential effects on local governance and services.