Madison Heights auditor signals clean opinion; city wins GFOA budget award

Madison Heights officials said the city’s finances are in solid shape as the council received a financial audit presentation and noted a national budget award.

Dan Merritt, principal with Raymond — the city’s independent auditor — told the council the firm expects to issue an unmodified opinion on the city’s FY2025 financial statements, meaning the statements are, in Raymond’s view, fairly presented in all material respects and suitable for submission to the Michigan Department of Treasury. Merritt summarized revenue and expenditure trends, pointing to continuing growth in property tax revenue and fluctuations in intergovernmental aid after federal pandemic grants waned.

The council also announced that the city’s FY2026 budget received the Government Finance Officers Association (GFOA) distinguished budget presentation award, which staff said reflects transparent reporting and strategic planning.

Merritt highlighted that the city has been making additional contributions to its defined benefit plans to improve funding positions. He cited an additional $3.8 million contribution earmarked for the police and fire pension plan and a $250,000 contribution to the general employees plan as part of multi‑year efforts to strengthen pension funding. He noted that the state treats plans that are 60% funded or more as being in funded status and that the city’s OPEB liabilities show strong funded positions.

Council accepted the audit presentation and voted to receive and file the report.

What happens next: after formal approval of the final audit document staff will submit the financial statements to the state as required; the council plans a budget‑planning workshop on Dec. 1.