Taylor receives unmodified audit opinion, general fund grows amid ARPA carryover

Taylor City Council received and filed the city’s audited financial statements for the year ended June 30, 2024, after a presentation from auditors Plante Moran that highlighted an unmodified opinion and a larger-than-budgeted increase in the general fund balance.

Plante Moran partner Bill Brickey and audit manager Nate Sherib told council members the audit produced an unmodified (clean) opinion and that auditors did not identify any current-year internal control deficiencies. The council voted unanimously to receive and file the audit.

The auditors said the city’s general fund balance increased by about $6.2 million in 2024, which exceeded the budgeted increase of $3.7 million. Plante Moran attributed the positive variance largely to expenditures running below budget in employee benefits, public safety, recreation and culture, and lower-than-anticipated capital outlays. The city’s unassigned general fund balance was reported at about $19.4 million, roughly 42.5% of current-year expenditures (about 155 days of reserves).

Nate Sherib noted that a portion of those reserves relates to federal grants, including American Rescue Plan Act (ARPA) funding. The city received $11.6 million in ARPA in prior fiscal years; $756,000 was expended in 2024 and auditors said approximately $8.1 million remains obligated for future periods. Sherib warned that grant timing affects revenue recognition because many federal programs reimburse expenditures rather than provide recognized revenue on receipt.

Plante Moran summarized capital activity: more than $18.4 million invested in infrastructure and equipment across governmental and enterprise funds; capital outlay totaled about $11.1 million and depreciation about $12.0 million. The firm noted capital spending and depreciation trends should be monitored to avoid a future backlog of replacement needs.

On long-term liabilities, auditors presented the net pension and OPEB picture. The net OPEB liability was reported at about $119.6 million. Pension plan liabilities were shown as $68.5 million for police and fire, roughly $34.0 million for general employees and $1.8 million for municipal employees. Funding ratios varied by plan; auditors noted some plans use different measurement dates (12/31/2023 versus 6/30/2024), which affects comparability.

Mayor Woolley and city staff thanked finance staff for preparing the documents; staff noted the federal grants had helped the city preserve fund balance by covering projects that otherwise might have used general revenues. Council members did not propose additional action at the meeting; the audit was received and filed.

Ending

The audit package and Plante Moran’s presentation are available on the city’s website under the Budget and Finance financial reports section, the city announced. No follow-up directives or formal audit findings were reported at the meeting.