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Independent auditors give Village of Saint Charles a clean opinion, note pension and OPEB liabilities
Summary
An independent audit delivered an unmodified opinion on the village financial statements but highlighted an unrestricted governmental net position deficit driven by long‑term pension and OPEB liabilities; general and street fund balances remain positive, and water fund carries long‑term debt from a 2023 bond issue.
The village of Saint Charles received an unmodified (clean) independent auditors’ opinion on its financial statements for the year, the auditors reported at the council meeting. The auditor said the village’s financial statements “fairly present financial position” in accordance with governmental accounting standards.
The auditors told the council the village’s total net position increased by about $596,000 this year compared with an increase of about $817,000 the prior year, and that primary property tax revenues rose about 5.5 percent because of higher taxable values. On a governmental‑fund basis the general fund reported a March 31 fund balance of about $1,175,000 — roughly one year of operating resources relative to the village’s $1.2 million general fund budget — and three street funds show a combined restricted balance near $740,000.
The auditors also said the village reports an unrestricted net position deficit in governmental activities of about $742,000. That deficit mainly reflects long‑term liabilities: an unfunded pension liability of about $1.3 million (measured at last December) and an OPEB (other post‑employment benefits) liability of approximately $417,000. The auditor noted the village has contributed roughly $750,000 in additional payments toward the pension over the past 10 years above the actuarially required minimums.
For business‑type activities (water and sewer) the auditors reported no fund deficits. The water fund carries long‑term debt from a February 2023 bond issuance of roughly $3.5 million to improve the water system; those bonds are scheduled to be repaid through 2043. The auditor said current revenues appear sufficient to meet the scheduled debt service but flagged the water fund as the “weakest” of the enterprise funds because it lacks a large unrestricted balance and therefore requires careful management of rates and expenses.
Council members accepted the audit presentation and asked procedural questions about receiving the report in advance. The auditor told the council the engagement produced 28 adjusting journal entries and that the work was consistent with similar villages of this size.
The auditors’ presentation is available in the council packet. Councilors did not take additional formal action on the audit at the meeting.
