City receives clean FY2024 audit; BLW reports revenue gains and a 4% water pass-through increase

Marietta received an unmodified ("clean") audit opinion for fiscal year 2024, auditors told the council at an agenda work session, and the Board of Lights and Water (BLW) reported year-over-year revenue growth in its largest enterprise fund alongside administrative actions including a 4% pass-through water rate implemented through BLW policy language.

Jenny Harris, senior manager at NicholsCauley (the city's audit firm), told the council the auditors'opinion on the basic financial statements was "unmodified or clean," and that the report had been filed with required agencies on Dec. 31, 2024. NicholsCauley said the city expects to receive the Government Finance Officers Association certificate of excellence again this year.

Why it matters: A clean opinion indicates auditors found no material misstatements in the basic financial statements and no reportable findings from the financial-statement audit. The council voted to move the annual comprehensive financial report (the audit) to the Wednesday full council agenda with an explicit instruction that the report be posted on the city website.

Key financial figures presented by NicholsCauley included:

- General fund: total revenues of $53,800,000 and expenditures of $71,800,000 for FY2024; net change in fund balance was an increase of $1,400,000; total general fund balance was reported at $41,000,000 with an unassigned portion of $9,500,000.

- Board of Lights and Water (BLW): operating revenues of $158,000,000, operating expenses of $127,000,000, operating income of $30,500,000, and a total increase in net position of $18,900,000; BLW net position reported at roughly $280,238,000.

BLW staff briefed the council on operational matters recorded earlier by the BLW board. The BLW reported a policy decision to continue participation in a Renewable Energy Credits program (a DoE/BLW policy letter) and described two pass-through service-rate policy updates: BLW Policy 3.20 (residential) and Policy 3.24 (commercial), which formalize a 4% water rate increase passed at the BLW level and passed through to customers.

BLW staff also summarized energy market performance for November: total energy resources were down about 5.96% (about $338,000) compared with the MEAG budget; wholesale credits for the month totaled $1,400,000 and year-to-date wholesale credits were $8,500,000 (about $900,000 less than December 2023). The spot natural gas price cited in the presentation was $3.12 per MMBtu at the time of the meeting.

Procedural actions: Council members voted to send the annual comprehensive financial report to Wednesday's full council agenda with the additional direction that the audit be posted on the city's website. Council also addressed a correction in BLW minutes (the vote on the first page should read 502 rather than 520) and approved moving BLW-related consent items forward with that correction. Several council members asked whether separate votes were required for BLW acceptance and the city's receipt-and-file action; staff advised that one receiving motion, forwarded to the full council, was appropriate.

Direct quote from the audit presentation: "Our opinion ... is an unmodified or clean opinion on the basic financial statement," said Jenny Harris, senior manager at NicholsCauley.

Next steps: The annual comprehensive financial report will appear on the Wednesday full council agenda; staff will post the audit and supporting materials on the city website per the council's motion. Council also scheduled the amended disorderly conduct ordinance for Wednesday consideration and continued other items discussed in the work session.