Audit: Lititz Borough posts unmodified opinion; fund balances and pension assets look healthy

Brown Plus auditor Scott Henry presented a high-level review of the borough’s 2025 audited financial statements and said the firm issued an unmodified opinion — the highest available — indicating the statements are materially correct under generally accepted accounting principles.

Henry highlighted that governmental activities showed a net position of about $39.4 million and business-type activities about $29.2 million at year-end 2025. Noncurrent governmental assets increased approximately $327,000 during the year, and current liabilities for governmental activities decreased by roughly $865,000. The general fund and other governmental funds had a combined ending fund balance of about $9.9 million, with approximately $3.7 million unassigned (about 38% of total fund balance).

The auditor noted business-type activities had a loss of roughly $1 million, largely because ARPA funds were moved into the sewer fund to support ongoing projects and operational costs. Revenues for business-type activities declined about 2% year-over-year due to lower usage and reduced investment returns; expenses increased approximately $98,000.

Capital activity included roughly $1.6 million in purchases offset by around $2.4 million of depreciation expense. Henry also said the police pension plan was an asset at year-end (~$329,000) while the non-uniform pension plan showed a liability (~$854,000), both actuarially determined and subject to change.

Council asked about future financial pressures; the auditor pointed to rising costs (especially paving and labor) and recommended multi-year asset planning (a five- to ten-year replacement schedule) to anticipate replacement and maintenance needs.

The council voted to accept the audit presentation and later approved the 2025 audit.