Auditors give Platteville unmodified opinion on 2024 financial statements; utility and fire-facility debt drove fund-balance changes

Johnson Block & Company presented the City of Platteville's 2024 audited financial statements at the June 10 council meeting and issued an unmodified opinion, meaning auditors found the statements presented in accordance with generally accepted accounting principles in all material respects.

Audit partner Brent Nelson said the scope of the audit included all city funds, including the housing authority and multiple TIF districts. He reported an overall increase across governmental funds of about $6,042,003.75 for 2024 and noted some major drivers: the fire-facility fund increased by roughly $4.5 million because the city issued about $4.6 million in debt late in 2024 that had not been spent by year-end; capital projects and general-fund favorable budget-to-actual variances also contributed.

Nelson said the city's general fund unassigned balance was approximately 28% of annual expenditures at year-end, above the city's policy minimum of 20%. He also highlighted the water and sewer utility's strong performance: utility net position increased by about $22,087,000 and utility revenues exceeded $6.9 million in 2024, aided by rate increases (10% sewer increase in January 2024 and a roughly 4% water increase in July 2024).

The auditors noted the city issued about $5.9 million in debt in 2024 across governmental and business-type activities and that the city's outstanding general-obligation debt remained below the statutory limit set by Wisconsin and within the city's internal policies. Nelson said a federal single audit and a TIF-5 closeout audit would be completed later in the summer.

Councilors thanked the audit team and finance staff; Nelson encouraged councilors to review the full audit report and the required-management communications that had been issued.