Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Warrenton audit: clean opinion, TIF debt and Loggers pension liability remain focal points
Summary
Auditor Alan Schulte of UHY LLC delivered a clean (unmodified) opinion on the FY2025 financial statements, noting a $3.3 million outstanding TIF debt, new $8 million water/sewer bonds and about $2.3 million net pension liability under the Loggers plan; council accepted the audit 5‑0 with 1 absent.
Alan Schulte, a principal at UHY LLC, presented the city’s audit for the year ending Dec. 31, 2025, telling the Board of Aldermen that the firm issued an unmodified (clean) opinion on the financial statements.
"We issued an unmodified or clean opinion on the audit," Schulte said, describing the statements as "fairly stated in accordance with GAAP." He walked members through key highlights: a reduction in current assets of about $1,000,000 largely tied to transportation spending; capital‑asset additions of roughly $1.6 million offset by depreciation; and long‑term liabilities decreasing by about $2.5 million because of loan payments, including payoff of an interchange loan.
Schulte identified the outstanding TIF principal at about $3.3 million and annual TIF principal payments near $700,000. On water and sewer activity he said the city issued about $8 million in new bonds and recorded roughly $10 million in capital additions, aided by a roughly $3 million grant for sewer improvements.
On reserves, Schulte noted the city’s general fund provides about 115 days of operating coverage. He cautioned that while that is a healthy buffer, fund balances can be eroded quickly if unplanned spending or staffing changes occur.
The presentation highlighted the Loggers pension figures: an estimated liability of about $6.2 million versus assets of roughly $3.9 million, producing an estimated net pension liability near $2.3 million — an increase from the prior year driven by a benefit change. Schulte said the city’s current contribution rate to Loggers is about 9% of payroll, with employees contributing an additional roughly 4%.
Council members asked for copies of the bound report and a breakdown of the pension/contribution detail; Schulte said the city would be provided with a report binder and that the long‑term funding goal is to reach 100% funding over time. The board voted to accept the audit; the motion passed 5 to 0 with 1 absent.
