The Shawano Common Council approved an audit report from Kerber Rose accounting firm on Sept. 10 that showed the city passed with flying colors.
Among the highlights of the report was that the city’s fund balance increased by $250,000 in 2024 to about $2.2 million, giving Shawano a balance that is 24% of its budget. Greg Pitel, Kerber Rose consultant, said that fund balances should be between 20% and 30%, which means the city is in good shape in case of an emergency.
Pitel noted that the fund balance had dropped after 2020 during the pandemic but has improved in the last few years.
“Those basically represent the financial resources to start the 2025 year,” he said. “From a general fund perspective, you’re certainly in the range we would recommend. It’s a little bit below the 30%, which is considered excellent, but from a cash flow standpoint and a good standpoint, I would consider the general fund to be in good health.”
There was one finding that was not favorable to the city, according to Pitel, and that was related to material account adjustments. He attributed that to the change in finance directors, with Greg Smith leaving and being replaced by Brian Della.
“Greg had been here for a number of years, and then that spot was open for a little bit before Brian came in,” Pitel said. “There were just a few more adjustments on our end during the audit to bring your financial statements in accordance with generally accepted accounting principles.”
Pitel noted that the city has trended lower in its debt in recent years, and in 2024, the debt was below 40% of the city’s general fund operating expenditures.
“There’s no magic amount of debt from a recommendation standpoint, as long as you have a return in investment from the debt that you’re taking out, I think that’s positive in relation to debt,” Pitel said.
In 2024, the city increased its water rates by 28%, the first time it had done so since 2015. That resulted in the city having a rate of return 8% above what is recommended by the Wisconsin Public Service Commission, according to Pitel.
lpulaski@newmedia-wi.com
