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Troy controller reports small 2025 surpluses amid questions over accounting and ARPA balances
Summary
The city controller presented unaudited 2025 figures showing modest surpluses across the general, water, sewer and garbage funds and about $72.2 million in cash, while council members pressed for reconciliations on 2024 restatements, ARPA spending, and interfund transfers.
The city controller told the Troy City Council finance committee on May 7 that preliminary, unaudited figures for 2025 show modest surpluses in most operating funds and substantial cash balances, but multiple council members asked for follow-up on accounting entries and ARPA reconciliation.
Controller Mike said the general fund posted an unaudited surplus of $453,000, the water fund $411,000, the sewer fund $187,000 and the garbage fund $5,000. He said cash at year-end totaled about $72.2 million and that ARPA expenditures were roughly $6.7 million for 2025. He noted, however, these are pre-audit numbers that will be refined over the coming months.
Council members used the AFR presentation to press staff for detail. Council President Dorenzo asked about an $8.5 million “due from” balance in the water fund; the controller said those amounts reflect clearing and treasury mechanisms that move cash between accounts and that the net fund balance is the governing metric. Several members requested the exact postings and asked staff to reconcile the unaudited AFR numbers against the 2024 audited statements.
Other questions focused on new revenue lines and reporting formats. Council Member Feo asked where about $230,000 in adult-use cannabis revenue was recorded; staff said excise tax lines and similar local-revenue categories received that income and that it will be reflected in future reports. Councilors also asked whether quarterly reports and AFRs use the same basis; the controller confirmed both are prepared on a modified accrual basis.
Members asked for follow-up on several items the controller could not resolve on the spot: the date and booking for a $250,000 pre-development payment to the local development corporation tied to the Proctors/city-hall transaction, large shifts in debt-service lines between years, and apparent differences between the ARPA steering-committee spreadsheet and AFR ARPA balances. The controller said he would provide the requested detail by email and through the audit process.
Why it matters: The AFR provides the first formal snapshot of last year’s finances and the starting point for the external audit. Council members emphasized they need reconciled, auditable figures before relying on the unaudited balances for policy or transfer decisions. The controller and administration said they expect the audit process over the next five months to settle outstanding variances.
The council moved from the AFR presentation into the fourth-quarter and first-quarter reports and then opened the scheduled public forum.
