Sterling Heights receives FY2025 audited financial report; auditors issue clean opinion

Sterling Heights City Council voted to receive and file the city's fiscal year 2025 annual comprehensive financial report after an audit by Raymond Robson LLP returned an unmodified opinion.

Assistant Finance & Budget Director Nick Mackey summarized the report: the city's net position increased by $42,700,000 year over year, driven largely by infrastructure investments; general fund revenues totaled $136,800,000 and expenditures were $134,700,000, leaving $2,100,000 added to the general fund reserve and a reported general fund balance of $43,000,000 (31.9% of annual expenditures). Mackey noted that the increase in reserves includes carry-forward funding and about $900,000 in temporary investment gains.

Dan Merritt, a principal at Raymond Robson, told the council the auditors issued an unmodified ("clean") opinion on the financial statements, indicating they can be "relied upon in all material respects." He highlighted improved funding levels in the city's pension and OPEB plans and cited continued investment in roads and facilities. Merritt said the single-audit of federal awards (about $10.5 million in federal awards for FY25) was nearly complete, pending federal guidance.

Council moved to receive and file the report; the motion was supported and adopted by voice vote. Several councilmembers thanked the finance team for the reporting and noted the GFOA awards the city has received for financial reporting and the budget.

Next steps: the full 214-page report is available on the city's website; staff will continue presenting operating and capital priorities during upcoming budget discussions.