Troy audit: independent auditors give clean opinion; city plans $7M move to capital amid utility fund pressures

An independent audit presentation to the Troy City Council reported a clean opinion on the city—s FY2025 financial statements and no management‑letter comments, while city finance staff described both positive results and some enterprise fund concerns.

Alan Panter, partner at auditing firm Yo and Yo, told council the audit produced an "unmodified" opinion and that the auditors found "no audit findings" or single‑audit issues to report; he said the single audit report remains pending until the federal compliance supplement is issued. He also disclosed the city expended about $5.1 million in federal awards during the year and that auditors reviewed HUD and road improvement grant compliance.

Controller Kyle Vieth and CFO Rob Malcic summarized fiscal highlights: Troy—s FY2025 assessed value rose to about $8.8 billion (roughly +8.2%) and taxable value to about $6.6 billion (+6.7%), producing property tax revenue increases. General fund revenues exceeded budget by about $7 million while expenditures ran below budget by about $5.3 million. Staff described a likely transfer of approximately $7 million from the general fund to the capital fund to move the unassigned fund balance toward a 30% target and to fund capital priorities such as road projects and equipment.

Malcic said the city—s pension plan is overfunded (an actuarial surplus he cited at roughly $81 million) and that the closed retiree health care plan shows a net liability of about $7.8 million and remains well funded relative to peers. He also flagged enterprise fund trends: the water fund is operating with expenses exceeding revenues and an unrestricted net position cited near $4.1 million (down from prior years), while the sewer fund—s position was described as stronger but also trending downward.

Council members requested additional breakdowns (for example, how much of taxable value change reflects new construction vs. valuation increases), and staff committed to follow‑up data and to include clarifying figures in future reports.