Mount Pleasant Development News

Village Board Receives Unmodified 2025 Audit Report Showing Strong Financial Position

The village board received a presentation from Baker Tilly regarding the 2025 audit. The audit resulted in a clean, unmodified opinion on the financial statements, indicating material accuracy and consistent application of accounting principles. The general fund showed a favorable variance of $2.5 million in revenue compared to budget, primarily due to higher than expected licenses and permits (driven by TID 5 and 7 activity), public charges for services (ambulance revenue), various fire protection fees, and investment income. Expenditures were under budget by approximately $894,000, with general government and public works categories showing significant savings. The village added almost $2 million to its general fund balance, ending the year with $13.1 million unassigned, which represents 41% of the operating budget, exceeding the typical 10-25% recommendation. The debt service fund ended the year with $3.79 million, all of which is restricted for debt payments. The TID 5 capital project fund reported $73.7 million in restricted fund balance. Other village funds collectively added $5.4 million to fund balance, ending the year with $12.7 million unassigned. The sewer utility had a strong year, adding almost $9 million to its net position, ending with $135 million, largely due to capital contributions from TID activity and increased customer charges. Sewer utility cash reserves increased by over $4 million to $32 million. The village's long-term obligations totaled $253 million, with the sewer fund at $22 million. The village has a remaining borrowing capacity of approximately $300 million based on its equalized value and outstanding general obligation debt. The report also noted material weaknesses in segregation of duties for payroll and journal entries, which are considered common for organizations of the village's size due to cost-benefit considerations.