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Council authorizes two-year GASB 75 actuarial contract with Howard E. Nihart Company
Summary
Council approved a two-year service agreement with the Howard E. Nihart Company to perform GASB 75 actuarial valuations and PA 202 uniform assumptions disclosures for fiscal years ending June 30, 2026 and June 30, 2027; the firm has served the city for roughly eight years.
The South Lyon City Council voted June 8 to authorize a two-year service agreement with the Howard E. Nihart Company to prepare GASB 75 actuarial valuation reports and the PA 202 uniform assumptions disclosures for fiscal years ending June 30, 2026 and June 30, 2027.
The finance director told council the firm has provided the service for about eight years and that the 2026 valuation will be a full valuation with census updates while the 2027 submission is an interim update. The finance director said fee increases have been modest (about 3%) and emphasized the company’s working relationship with the city’s auditor is a practical advantage for meeting audit timelines.
Council Member Hansen moved to approve the agreement and to authorize the city manager to sign; Council Member Dill seconded. Council discussed cost history, state reporting requirements (PA 202) and the role of the valuation in measuring the city’s other-post-employment benefits (OPEB) liability. The motion carried on roll-call vote.
Why it matters: GASB 75 valuations measure the city’s OPEB liabilities and are required for financial reporting. The valuation affects disclosure, audit readiness and budget planning for retiree benefit obligations.
What’s next: Finance staff will work with the vendor to collect census data and deliver the valuation on the schedule needed for the city’s audit.
