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Plante Moran issues unmodified opinion; Brighton general fund balance rises $603,000
Summary
Plante Moran presented an unmodified audit opinion for the fiscal year ended June 30, 2025, reporting a $603,000 increase in the city's general fund balance, continued capital investments of about $4.2 million and a $423,000 operating gain in the water and sewer fund. Auditors flagged pension and OPEB as large estimates and showed sensitivity to a
Tim St. Andrew of accounting firm Plante Moran told the Brighton City Council on Oct. 28 that the auditors "did issue an unmodified opinion" on the city's financial statements for the year ended June 30, 2025. The firm presented the executive summary and required communications and said the audit found no internal control deficiencies.
The auditors reported that the general fund balance increased by $603,000 from about $5.6 million to $6.3 million; of that amount, $2.4 million is unassigned. Plante Moran said the city invested roughly $4.2 million during the year in infrastructure, primarily road projects and utility improvements, and that the water and sewer fund posted a $423,000 operating gain (including noncash depreciation).
"Revenue is up approximately $450,000," auditor Daniella Suvak said, pointing to higher interest and investment income, increased property taxes and growth in fines and penalties, partially offset by a decline in license and permit revenue.
Auditors reviewed long-term estimates for pension and retiree health care and presented a sensitivity analysis. "As the discount rate decreases, the liability goes up," St. Andrew said, explaining that even a 1 percentage-point reduction in the discount rate materially increases the measured liability and could raise future pension contribution requirements. He described the pension and OPEB balances as "large estimates" in the financial statements and said the audit team relied on actuary reports and key assumptions in forming its conclusion.
Plante Moran also reported that the capital projects fund closed the year with roughly $1.9 million in fund balance to support future capital needs, and that only 44% of property-tax dollars collected relate to millages levied by the city itself (the remainder is levied by other taxing authorities). On the overall financial-health question from council, the auditors characterized Brighton's general fund and water/sewer fund as "in good shape," citing adequate reserves relative to annual expenditures.
Finance Director Gaines said the presentation reaffirmed staff's budget and investment choices and thanked the audit team for a smooth process. Council members asked follow-up questions about the pension discount rate, the composition of trust investments and the potential for increased future contributions if market returns remain below assumed rates.
The presentation closed with the auditors' required communications to governing officials and a note that no material weaknesses or misstatements required modification of management's presentation of the financial statements. Council did not take formal action on the audit presentation itself during the meeting.
Ending: City staff and the auditors agreed to provide follow-up materials on pension assumptions and the detailed audit report for council review and public posting.
