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Baker Tilly issues clean opinion on New Berlin’s 2024 audit; general fund ends year stronger than budgeted
Summary
Baker Tilly presented a clean, unmodified opinion on New Berlin’s 2024 financial statements, noting stronger-than-anticipated general fund results — roughly $1.6 million more in revenue and $1.2 million less in expenditures than budgeted — and highlighted a $13.8 million year‑end general fund balance.
Wendy, the Baker Tilly auditor who presented the review, told the City of New Berlin committee on Sept. 3 that the firm had issued a "clean, unmodified opinion" on the city's 2024 financial statements and included an emphasis-of-matter paragraph to call out new governmental accounting guidance on compensated absences.
The presentation, delivered during the committee-of-the-whole meeting, summarized several key figures for 2024. Wendy said revenue exceeded budget by about $1.6 million — largely driven by investment income — while general fund expenditures came in roughly $1.2 million under budget, driven in part by lower public safety salaries and benefits. She reported the city closed the year with approximately $13.8 million in the general fund, of which roughly $12.1 million is unassigned working capital.
Wendy emphasized the city’s favorable position for borrowing and debt service. She said general obligation debt outstanding totaled about $99.5 million at year‑end, after roughly $9.5 million in principal paydowns and $13.95 million in new borrowing; the city’s statutory borrowing capacity based on equalized value was estimated at roughly $402 million, leaving about $302 million of remaining capacity at the snapshot date.
The auditor also reviewed fund‑level results. Water, sewer and water resource management utilities saw positive cash-flow changes in 2024, with water cash balances of about $8.9 million and sewer about $15.7 million (mostly unrestricted). The capital improvement fund added to its balance after borrowing and project spending; the auditor noted about $13.95 million in borrowings and approximately $9.8 million in capital expenditures in 2024.
City officials were directed to the full audited financial statements and an accompanying reporting-and-insights document for complete footnotes and long‑term obligation disclosures. Wendy closed by offering to answer follow‑up questions and supply additional detail to staff as they implement new governmental accounting standards in 2025–26.
The committee did not vote on the audit itself; the presentation was informational and staff said the documents would be available to the council and public as part of the official record.
