Dexter Receives Clean Audit for Fiscal Year 2024–25

Dexter City Council received a positive year-end financial report at its Jan. 26 meeting, as the City’s independent auditor reported a clean audit and steady financial performance for the fiscal year ending June 30, 2025.

Rana Emmons, a certified public accountant with PSLZ LLC, presented the annual audit to council and said the City received the highest possible audit result.

“The city did receive the highest level of audit opinion possible, which is an unmodified opinion. So, nothing adverse, no exceptions, disclaimers, nothing bad to report this evening,” Emmons told council.

Property taxes remained the City’s largest revenue source. Emmons noted that while Dexter’s millage rate stayed flat, taxable values increased.

“You kept your millage rates the same as the prior year, but your increases came from the taxable values of 6% this year,” she said.

State shared revenue was essentially flat compared to the prior year, with modest declines projected ahead. Investment income rose again in 2024–25 as the City continued to benefit from favorable interest rates.

“Interest income is up this year… you’re taking advantage of those good rates that are being offered out there, but still staying very safe with your investments,” Emmons noted.

Total General Fund expenditures increased by about $300,000, driven largely by public safety costs. “There was about a $200,000 increase in fire expenses,” Emmons said, noting the City still finished well under budget.

The City ended the year $730,000 under its amended budget and added $544,000 to its General Fund balance. “You did come in under budgeted expenditures by $730,000… and you added $544,000 to the general fund,” Emmons said.

Capital spending continued, including road projects, park improvements, and construction of the new fire station. Emmons reported that approximately $4.15 million had been spent on the fire station by year-end, with bond proceeds remaining.

The City did not issue new debt during the fiscal year but paid down $1.644 million in principal. “No new debt this year, but you paid down a significant amount of principal, 1.644 million,” Emmons said.

She also highlighted improvements in the City’s pension position.

“Net pension liability… actually decreased this year $116,000,” Emmons said, adding that Dexter’s pension plan is now “86.8% funded.”

In response to council questions, Emmons praised the City’s long-term financial management and capital planning.

“You’ve done a really nice job with capital improvements in the city… you’ve managed money very, very well,” she said.

Comparing Dexter to peer communities, Emmons credited the staff for the City’s financial consistency.

“If I want to compare the city of Dexter to surrounding communities or cities your size, we have an excellent, very professional staff here… that’s how we get to the end of the year with no surprises and a really good report,” she said.

The full audited financial report for the fiscal year ended June 30, 2025, appears in the City Council packet, pages 11–80.