Shawano County’s debt remains below average while the fund balance continues to grow, as reported in the county’s annual audit.
John Rader, certified public accountant and managing director with Baker Tilly, presented highlights of county’s 2025 financial statements to the executive committee in June.
For starters, the county is only using 5% of its state-allowed debt limit, as of Dec. 31, 2025.
The debt limit based on the county’s equalized value, which is $290.46 million, up from $258.28 million in 2024.
“It’s had a really nice, solid, consistent growth year over year the last five years,” Rader said, referring to the total equalized value. “It’s actually up 12% from 2024.”
The county’s debt is $15.89 million, which is $72,000 more than the previous year. This also includes $3 million in short-term debt borrowed to work around the levy limits of the state.
“You’re only using 5% of your debt limit,” Rader said. “That’s quite low.”
Supervisors have also adopted a limit on the debt per capita of $1,500. Today, that debt number is $388 per person.
In 2025, the county paid $1.4 million toward its debt. This amount, compared to the rest of governmental expenditures, excluding capital, is 2.8%.
“We always recommend 20% or lower,” Rader said. “Counties are typically 10% or lower.”
The general fund is the primary operating fund for the county, probably the No. 1 indicator of the financial health of the county, Rader said.
The fund includes five categories: nonspendable, restricted, committed, assigned and unassigned.
The nonspendable category increased from $1.4 million in 2024 to $1.89 million in 2025.
“The bulk of this, $1.2 million, is made up of the non-county portion of the delinquent taxes receivable,” Rader said, noting that state law requires the county takes this over from local municipalities.
The restricted category increased from $327,221 to $292,116. These are external restrictions, such as state statutes or grant stipulations.
The committed category total dropped from $2.57 million to $1.13 million
“These are determined by board resolutions for things like vehicle replacements, inmate welfare and maintenance,” Rader said.
Assigned category funds increased from $863,041 to $2.8 million.
“The biggest chunk of that by far is what you’ve applied to balance the 2026 budget,” Rader said. “You’re spending down your fund balance by $2.7 million. There’s a little left in there for carryovers and such.”
Finally, the unassigned category increased from $14.02 million to $15.91 million.
Overall, the total general fund rose from $19.19 million to $22.02 million.
“Your fund balance actually increased by $2.8 million even though you planned or budgeted to spend it down by about $600,000 after all the amendments and such that flowed through there,” Rader said.
The reason for the increase is because revenue came in $1.18 million more than projected.
“That was driven by sales tax collections … and also investment income,” Rader said.
Also, expenses were $2.29 million less than budgeted.
“The ones that kind of drove the under the most were administration, courthouse maintenance, jail operations, sheriff, land conservation and planning,” he said.
Shawano County has a policy that it’s fund balance should be between 20-25% of the subsequent year’s budgeted appropriations for the general, public health, human services and library funds.
“You’ve been above or right at your policy for the last five years in a row,” he said.
That percentage was 30.3% in 2024 and increased to 34.6% in 2025.
“To sum it up, John, we are in good shape,” County Board Chairman Tom Kautza said.
kpasson@newmedia-wi.com
