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Auditors give Muskegon an unmodified opinion; city posts $1.29 million operating surplus
Summary
Auditors from Brickley DeLong delivered an unmodified opinion on the City of Muskegon’s Comprehensive Financial Report; general fund revenues rose to $44,216,315 and the city reported an excess of revenues over expenditures of $1,286,503. Officials were also briefed on pension and retiree health funding levels.
Auditors told the City of Muskegon City Commission on Jan. 13 that the annual financial statements present fairly in all material respects and that the city’s finances showed modest improvement year over year.
“In our opinion, the financial statements referred to above present fairly in all material respects,” said Eric Van Dop of Brickley DeLong during the audit presentation. Finance Director Kenneth Grant introduced the report and thanked staff for their work assembling the annual Comprehensive Financial Report.
Why it matters: The auditors reported general fund revenues of $44,216,315 — up about $3.4 million from the prior year — and an excess of revenues over expenditures of $1,286,503, leaving an ending fund balance of $9,747,474. Those results keep the city above its policy target; the city’s unassigned general fund balance stood at about 17.36% of prior‑year revenues, above the 13% policy threshold.
What auditors highlighted: Eric Van Dop reviewed revenue drivers (taxes, licenses and permits, intergovernmental grants), noting increases across most lines. The auditors also reported no findings in the federal single‑audit compliance work for major programs, including ARPA and water/sewer grants. Van Dop emphasized that the independent auditor’s review focuses on whether the financial statements are fairly presented rather than testing every transaction.
Pensions and retiree health: The commission heard actuarial figures for the MERS defined‑benefit pension plan and the city’s retiree health plan. Van Dop reported a MERS total pension liability around $133,770,000 with a fiduciary net position of about $87,287,000, leaving a net pension liability near $46,000,000 and a funded ratio in the mid‑60% range. By contrast, retiree health was described as fully funded (reported above 100% funding).
Commission response and next steps: Commissioners asked clarifying questions about transfers between funds, minimum reserve targets, and the one‑time nature of some capital grant revenues that inflate net position. The auditor and finance director said staff will continue monitoring pension funding and plan required contributions; no material weaknesses or significant deficiencies were reported.
The commission accepted the audit presentation; no formal vote was required on the auditor’s opinion itself. The auditors and finance staff said they will return with routine follow‑up and that the next audit cycle will begin as scheduled.
