Wayne audit shows improving finances; auditors issue unmodified opinion

An external audit of the City of Wayne's fiscal year ending June 30, 2025, returned an unmodified opinion, and city officials and the auditor said the results reflect steady improvement in the city's finances.

The auditor, Brian Kamilar, told the City Council that an "unmodified opinion" means the financial statements can be relied upon for accuracy and conformance with generally accepted accounting principles. He said the audit included a separate internal-controls report that noted a previously identified significant deficiency related to gift cards but that the issue had been identified by the city and corrected before publication of the report.

Kamilar outlined several fund-level numbers: the major-street fund showed a surplus of just under $100,000 with a fund balance of about $2,400,000; local-street funds had a surplus of roughly $735,000 and a balance near $5,600,000; the youth-programs fund held about $1,300,000 restricted for youth programming; the opioid-settlement fund balance was about $96,000 with modest net outlays last year. He said the water and sewer fund is "pretty well funded" and that short-term indicators have improved.

On the general fund, Kamilar said revenue exceeded expenditures by approximately $233,000 for the year, which he attributed mainly to unfilled positions that lowered payroll and associated pension costs. He cautioned those are year-to-year and noted that long-term liabilities remain: MERS pension contributions have increased and the net pension liability has remained roughly level at about a 58'to'60 percent funded level. Retiree health-care liability was reported as approximately $2,800,000 after prior plan changes.

Kamilar said the city's general-fund balance was at about 40 percent of annual expenditures as of June 30, 2025, which is above the Government Finance Officers Association's recommended minimum of two months (about 16.7 percent) and within the city's own stated policy range (20'40 percent). He described options for raising revenue if needed (voter-approved millage under Public Act 345, a special assessment under Public Act 228 in certain circumstances, or a judgment levy as a last resort) and said the audit shows the city is "righting the ship" but should not become complacent.

Council members asked clarifying questions about the difference between a one-year net surplus and the accumulated fund balance; Kamilar reiterated that "net surplus is just for this year" while fund balance is the cumulative saving ("your savings account").

The city manager and finance director were commended for their work; the city manager thanked staff and the auditors for the unmodified opinion. The auditor said he would be available to answer further questions.

The council did not take additional formal action on the audit presentation at the meeting; the materials were presented and discussed on the record.