Eaton County posts clean 2023–24 audit; commissioners briefed on budget pressure and Headlee limits ahead of special budget sessions

EATON COUNTY — Eaton County officials reported an unmodified (clean) audit for fiscal year 2023–24 and discussed the budget pressures that have prompted a special budget meeting on April 25 and a separate decision meeting in May.

Nathan Balderman, the audit partner who presented the results, told the board the independent audit team issued an unmodified opinion on the county’s financial statements and found no material weaknesses or significant deficiencies in internal controls. He also said the county’s federal single‑audit program testing for ARPA funds (the program tested this year) returned no findings.

"We did issue an unmodified opinion ... That's considered to be a clean opinion," Balderman said. He added that audit procedures do not test every transaction but are designed to provide reasonable assurance that "the financial statements are fairly stated in all material respects."

Finance Director Melissa Ballard reviewed key budget numbers presented in the Ways and Means packet. Ballard said the county saw strong property valuation increases and higher interest and rent receipts, and that overall year‑end results were better than expected. The county had originally budgeted to use about $680,000 of fund balance but ended the year with roughly $1.6 million of added fund balance instead.

"We had anticipated that we would use fund balance of $680,000 approximately. And we ended up gaining fund balance in the amount of approximately $1,600,000," Ballard told commissioners.

Ballard and commissioners stressed the role of deliberate vacancy management and unfilled positions in improving the year‑end position. Ballard said personnel savings accounted for a substantial portion of the better‑than‑expected margin.

County staff and commissioners also discussed the Headlee tax‑limitation rules, which constrain local millage increases. Tim Vandermark, the county equalization director, briefed the board on valuation changes: residential values rose roughly 6.85% and total real property increased about 6.38% year‑over‑year. Vandermark explained Headlee limits mean the county’s tax rate is effectively capped by inflation and new construction; he warned the county likely faces another rollback of its authorized rate this year.

"Headlee restricts your tax millage. It cannot go above inflation essentially, not including new construction," Vandermark said, explaining why revenues cannot be counted on to keep pace with inflation and rising costs.

The audit acceptance was placed before the board for formal action. The board moved and accepted the 09/30/2024 audit report on a voice vote.

Chairman Mott used the meeting to preview an accelerated budget process. If the public safety millage on the ballot in 2025 does not pass, county leaders said the administration will present a menu of cuts and reorganization options. Chairman Mott said the board will hold a special budget meeting at 9 a.m. on April 25 for a line‑by‑line review and then a subsequent session in May when the board will make decisions about staff and program reductions if needed.

Prosecutor Doug Lloyd used part of the public comment section to describe criminal justice workload and recent state court decisions that could increase prosecutorial costs; he said in‑court hearings to review retroactive life‑without‑parole sentences could require expert witnesses and additional expense.

The board heard public comment on the public safety millage during the meeting. Several residents and officials urged support for the millage, citing long response times for state police and concerns about reductions in sheriff’s office staffing.

Ending: The audit provides short‑term assurance that Eaton County’s accounting and federal award handling met professional standards for 2023–24. County leaders said the larger fiscal challenge remains structural — Headlee limits on revenue and rising personnel and benefit costs — and they directed staff to prepare financial options for the board’s upcoming special budget sessions.