City of Dexter Receives Its Financial Audit
The City of Dexter received a glowing report for its Fiscal Year Ending June 30, 2022, Financial Audit.
Rana Emmons of PSLZ LLC Certified Public Accountants presented the audit to the city council at its January 23 meeting.
“Once again, the city did receive the highest level of audit opinion possible, which is an unmodified opinion,” began Emmons. “No exceptions, disclaimers, nothing bad to report tonight.”
The Association of Chartered Certified Accountants defines “unmodified opinion” as “when an auditor is able to satisfactorily conclude that the financial statements are free from material misstatement.”
Emmons listed off highlights from the audit, which include:
- The City’s primary source of income, property taxes, was up 1.7%.
- The state accounted for the 2020 census numbers and added an extra $52k to the City’s state-shared revenue, for a total of $122k for FY2022.
- The City added $508k to its general fund, spending $286k less than budgeted.
- No new debt.
- Capital projects included new city offices, Second St water main, and Dexter Crossings road projects.
In her written report, Emmons noted:
- “The City of Dexter is continuing its commitment towards fully funding its long-term liabilities, and to this end contributed 132% of its required annual contribution to its defined benefit plan, and an additional $122,000 to its Retiree Health Care Funding Vehicle.
- “The assets of the City of Dexter exceeded its liabilities at the close of the most recent fiscal year by $25,363,143 (net position). Of this amount, $4,943,810 (unrestricted net position) may be used to meet the City’s ongoing obligations to citizens and creditors.
- “The City’s total net position increased by $3,670,922.
- “At the close of the current fiscal year, the City of Dexter’s governmental funds reported combined ending fund balances of $5,749,152. Thirty-eight percent of this total amount, $2,181,353, is available for spending at the government’s discretion (unassigned fund balance).
- ”The City of Dexter’s total debt decreased by $1,168,000 during the current fiscal year which reflects annual principal repayments made.”
Emmons was impressed with the City’s pension funding, saying, “The pension plan is 95.9% funded, which is phenomenal, up from 90% the year before. I’m not seeing that typically in other communities.”
Emmons also noted the City is 90% to 119% funded in its other post-employment benefit liabilities.
In response to Councilmember Hubbard’s question of where the City might improve, Emmons responded, “making sure that the general fund has a healthy fund balance for anything that may be thrown your way” and “the pension liabilities and other post-employment benefits. Those really are the big things.”
“Most communities are really struggling to keep them even at 80% funded, and you’re at ninety-something,” she continued.
“You’ve been working on that for a long time,” concluded Emmons. “The City has always looked forward, and that’s how we get to this report today. You’ve been doing things right all along and have been very fiscally conscious.”