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City auditor reports clean FY23/24 audit; council approves budget fixes and health-insurance policy change
Summary
King & King presented a clean FY23/24 audit but warned the general fund should not fall below $500,000; Marlette Council approved first-quarter budget amendments, a 1% holiday stipend and a change to the city's MESSA health-insurance policy that adjusts the city contribution and opt-out requirements.
Wes Messing of accounting firm King & King told the Marlette City Council on Nov. 18 that the firm issued a clean FY23/24 audit but cautioned the council that the general fund should not drop below $500,000 and that, because the city has run a deficit in recent years, the State of Michigan will send a formal letter as a matter of formality.
The council approved its 1st quarter budget amendments for FY24/25 after the audit presentation. Hunter moved to approve the amendments; Bell seconded and the motion carried. The council also approved a 1% employee holiday stipend, enacted by a motion from Redman that passed unanimously.
Manager Rudzis and council members then discussed employee benefits. Manager Rudzis relayed recommendations from Clerk Rebecca Slater and Police Chief McGinnis on 2025 MESSA health-insurance options. Hunter moved to offer both MESSA plans as presented and to update the Personnel Policy's language under Benefits and Services: replace the phrase “current cost of his or her monthly health care premium” with “the city will pay the employee 25% of the lesser of the two qualifying options of their monthly healthcare premium.” The motion also added that, effective Jan. 1, 2025, employees who opt out of city health coverage must enroll in ancillary vision and dental plans at 6% of their monthly premium. Bell seconded the motion and it carried.
The auditor's clean opinion means the city's FY23/24 financial statements were presented fairly in accordance with accounting standards; Messing also emphasized the council should monitor the general fund balance going forward. The council did not request additional amendments at the meeting.
The council is expected to receive the State's formal letter regarding the multi-year deficit referenced by the auditor; no timetable for the letter was given during the meeting.
