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Audit finds clean opinion; city reports $7.2 million general fund balance and plans to draw it down for equipment and projects
Summary
An independent auditor gave East Grand Rapids a clean audit and the city reported a $7.2 million general fund balance, plans to spend down reserves for capital purchases including a $1.7 million ladder truck and other equipment, and will continue monitoring fund use.
An independent audit presented to the East Grand Rapids City Commission found no material weaknesses and gave a clean, unmodified opinion on the city’s financial statements.
Auditor Doug Bridal told the commission the comprehensive annual financial report shows a net positive change in the general fund of about $537,000 for the fiscal year and a total general fund balance of roughly $7.2 million. "In our opinion, the statements present material respects the financial position of the city," Bridal said during his presentation.
The audit presentation, introduced by Finance Director Seath, also highlighted that about $4 million was spent on street work during the year and that property taxes made up a larger share of the city’s revenues in 2025 (about 69%) compared with 2024. Bridal noted the city’s pension plan funding has improved and that the report contains no reportable internal-control deficiencies.
Commissioners asked how the city plans to use the higher-than-target fund balance; commissioners and staff said the city has an informal target of about $4 million and identified near-term needs that account for part of the difference. Commissioners listed planned capital uses including a ladder truck on order (about $1.7 million), a replacement truck estimated at roughly $700,000, and several delayed projects in the neighborhood of $350,000. City staff said some of the reserve will deliberately be spent down rather than financing projects with new debt.
Seath and Bridal also noted the city is submitting the report to the Government Finance Officers Association for its Certificate of Achievement for Excellence in Financial Reporting; the commission heard the city has received the recognition multiple years in a row.
Next steps: commissioners said they would schedule further discussion on fund balance strategy and capital priorities at a future meeting so the full commission can review options for planned purchases and potential timing for spending reserves.
