Sterling Heights receives clean audit: general fund rises, roads and ARPA spending highlighted

Sterling Heights council received and filed the city's Annual Comprehensive Financial Report (ACFR) for the fiscal year ending June 30, 2024, after a presentation by Assistant Finance and Budget Director Nick Mackey and independent auditors from Raymond Robson LLC.

Audit findings and finances: Auditor Daniel Clark reported an unmodified (clean) audit opinion and noted no material audit adjustments or findings. Mackey summarized key numbers: a $40.4 million increase in the city's net position driven largely by infrastructure investment; general fund revenues of $129.9 million and expenditures of $124.6 million, producing an increase of $5.3 million in reserves and a general fund balance of $40.8 million (32.8% of expenditures). The major and local roads fund reported over $22.4 million in revenue, including approximately $15.7 million in Act 51 revenue and $4.1 million from the Safe Streets millage. The Water and Sewer Fund ran an operational loss of $361,000, attributed to decreased usage from wetter weather.

Other notes: Investment income and unrealized gains contributed meaningfully to the year's results; the city reported improved pension and OPEB funding ratios (general employees pension ~72.5%, police and fire ~61.9%, OPEB ~79.1%). Auditors also completed single-audit testing of federal expenditures (about $5.4 million) and ARPA spending ($3.4 million) with no compliance findings. The city received the Government Finance Officers Association certificate of achievement for excellence in financial reporting and the distinguished budget presentation award.

Council action: After auditors' remarks and brief questions, council moved to receive and file the ACFR; the motion carried by voice vote.