The Walled Lake City Council received a clean audit report Monday evening: auditors from Pfeffer’s firm issued an unmodified opinion on the city's financial statements and said the statements "are presented fairly," the firm reported.

The finding matters because an unmodified opinion is the highest level of assurance an auditor can give. Auditor John Pfeffer told the council the firm issued the opinion after reviewing the city's statements, which were filed on time with the State of Michigan.

Pfeffer and audit staffer Kristen Polinowski said recent steps have strengthened Walled Lake’s finances. Pfeffer said a state grant of $4,300,000 significantly reduced legacy retirement debt and that the city is expected to reach a roughly 60 percent funded level for its pension liabilities in the coming year. He also said the city added about $1 million to its equity balance during the most recent fiscal year and paid down about $200,000 in bonds.

The auditors credited city management and the council for sustained budget discipline and cited a prior change to water billing as an example of operational improvements that reduced water loss. "The good news is we issued an unmodified opinion, which is the highest level of opinion that we can issue," Pfeffer said during his presentation. He added, "4,300,000.0 will come off of that debt," referring to the state grant.

Council members and the city manager praised staff cooperation and leadership. The audit report was submitted to the State of Michigan as required, Pfeffer said, and the city manager and council were advised that the report had been filed timely.

The presentation included an overview of long-term liabilities: pension and post‑retirement health care obligations have declined through a mix of negotiated changes, pay‑downs and the state grant. The auditors did not propose any modifications to the financial statements.

Councilors had no further questions after the presentation and thanked the auditors for the report.

(Reporter’s note: statements and figures above are drawn from the auditors’ presentation to council; the auditors said the state grant figure was $4,300,000.)