Board of Trustees Work Session

Croton Auditor Praises Village’s Financial Health, Flags $39M Retiree Liability

Name: Croton Auditor Praises Village’s Financial Health, Flags $39M Retiree Liability
Uploaded: 2026-01-28T19:00:00-05:00
Duration: 2 h 20 min 30 s
Description: Village auditors presented the financial report for the fiscal year ending May 31, 2025, awarding Croton a "clean" opinion despite a net deficit largely driven by accounting rules for future retiree health benefits. The Village's actual revenues outperformed the budget by over $1.1 million, though rising health insurance costs contributed to a 5% increase in expenditures.

Jan 28, 2026 2:20:30 22810 words transcribed

Village auditors presented the financial report for the fiscal year ending May 31, 2025, awarding Croton a "clean" opinion despite a net deficit largely driven by accounting rules for future retiree health benefits. The Village's actual revenues outperformed the budget by over $1.1 million, though rising health insurance costs contributed to a 5% increase in expenditures.

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Chapters

0:05 Presentation of the 2024-2025 Village Audit from Alan Kassay of PKF O'Connor Davies. transcript →

47:58 Review of the Old Post Road North Traffic Study by AKRF. transcript →

120:41 Review of a proposed local law to enact various cleanup items and amend certain provisions of the Zoning Code. transcript →

Key Actions & Decisions

● **Financial Audit Accepted:** The Board received the FY2025 audit report from PKF O'Connor Davies, resulting in an "unmodified (clean) opinion"—the highest possible rating.

● **Revenue Performance:** The Village generated nearly $23 million in actual revenues, about $1.1 million more than budgeted and a 4% increase over the prior year.

● **Expenditure Increase:** Spending rose approximately 5% to $20.3 million, driven primarily by a $400,000 increase in health insurance costs and rising retirement benefits.

● **Debt Strategy:** The Village transferred nearly $4 million from the fund balance to the Capital Projects Fund to pay for improvements upfront rather than issuing debt, saving on interest and issuance fees.

● **OPEB Liability:** Auditors highlighted a $39 million liability for Other Post-Employment Benefits (OPEB), a non-cash accounting figure that does not impact the day-to-day budget or bond rating due to state legal restrictions.