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Plante Moran delivers clean FY2025 audit; Trenton sees revenue gains and improved pensions
Summary
Auditors from Plante Moran reported an unmodified (clean) audit opinion for the year ended June 30, 2025, with general fund revenue up about $1.8 million to roughly $27.1 million and OPEB funding improving to about 66%.
Plante Moran presented the City of Trenton’s audit for the fiscal year ended June 30, 2025, telling council there were no reportable audit findings and that the auditors issued an unmodified (clean) opinion on the city’s financial statements.
Nate Sherib, manager on the audit, said general fund revenue increased by about $1.8 million (7%) to roughly $27.1 million for the year. Property taxes were the city’s largest revenue source for the general fund at about $17.6 million, up roughly $1.4 million from the prior year; auditors attributed the revenue increase primarily to a roughly 7% rise in the city’s taxable value. Federal and state revenues rose by about $780,000, primarily due to a Michigan local retirement grant received in September 2024, while other revenues (including permits) declined.
General fund expenditures were about $26.2 million, an increase that auditors said was in line with revenue growth. The general fund’s total fund balance increased to about $11.4 million and the unassigned portion was about $5.6 million, roughly covering 21% of annual expenditures.
Plante Moran also reviewed pension and retiree health liabilities: the municipal employee retirement plan was roughly 70% funded, the police and fire pension about 77% funded, and the OPEB (post-employment benefits) plan about 66% funded. Auditors said the OPEB funding ratio rose materially from prior estimates largely because actuarial "experience differences" (including post‑COVID health trend changes) reduced the estimated total OPEB liability.
Councilman Pucci asked whether the OPEB jump from about 40% to 66% was typical; auditors said experience differences in actuarial assumptions and the normalization of pandemic-era costs were the primary drivers and that other jurisdictions have seen similar swings.
The auditors offered to answer council questions and no formal audit findings were reported in the auditors’ end-of-audit communication to the mayor and council.
