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City auditor issues clean opinion; board hears $3.3 million outstanding TIF debt and $8 million water-sewer bonds
Summary
Outside auditor Alan Schulte told the Board of Aldermen the city's 2025 financial statements received an unmodified (clean) opinion; the audit highlighted a $3.3M outstanding TIF debt, $8M in new water/sewer bonds and a $3M grant for sewer improvements, and a net pension liability of about $2.3M.
Alan Schulte, a principal with UHY, presented the city's audit for the year ending Dec. 31, 2025, and said the firm issued an unmodified (clean) opinion on the financial statements. "We issued an unmodified or clean opinion on the audit," Schulte said, noting the report was prepared in accordance with GAAP and that the city's annual comprehensive financial report continues to earn recognition from the Government Finance Officers Association.
Schulte walked the board through several financial highlights: current assets decreased by about $1,000,000 (largely cash used for transportation spending); capital assets increased by roughly $400,000 after additions and depreciation; long-term liabilities decreased by about $2.5M from principal payments, including payoff of the interchange loan. He reported an outstanding TIF debt of about $3.3 million and noted roughly $700,000 in annual TIF principal payments. In the water and sewer fund, Schulte said the city issued $8 million in new bonds, recorded about $10 million in capital additions (offset by depreciation), and received approximately a $3 million grant that increased 'net invested in capital assets.'
Schulte also described pension numbers: the net pension liability was about $2.3 million after a benefit increase, and the city's pension contribution rate was about 9 percent, with employees contributing 4 percent. Board members asked for a bound copy of the finalized report; Schulte said staff would provide one after finalization.
The board voted to accept the audit report later in the meeting (roll-call vote recorded as 'Motion passes 5 to 0 with 1 absent').
