The city of Shawano’s finances are in good shape, according to an annual audit by KerberRose that was presented July 8 to the Shawano Common Council.
In the audit’s unmodified opinion, it’s reported that the city’s financial statements were in accordance with United States accounting principles, but one ding to the city was in the journal entries, according to Brianna Olson, the audit’s senior manager. Recent turnover at City Hall was the cause, she said, but it’s something common in a municipality Shawano’s size.
“I hear you’re fully staffed again, so I see this turning around in the next year,” Olson said.
The city had delivered a net-zero budget for 2025, where income and expenses were equal, but the city wound up with a $383,000 increase to its fund balance, which currently sits at 26.8% of its budget, according to Olson. Financial experts recommend government entities have a fund balance between 20-30% to have handy while waiting on state funding and in case unforeseen circumstances arise.
“You just had more revenues overall, most of it from investment income, and then your expenditures stayed relatively to where you had them,” Olson said to the council.
Debt went up slightly due to the city borrowing $4.7 million in 2025, according to Olson, although debt from the utilities went down.
Olson also noted the water utility’s rate of return in her report. The average rate of return is 6.3%, she said, but last year, the rate was 5.69%.
“It’s not too significant of a dip, but it’s something to keep an eye on for a simplified rate case in the future,” Olson said.
lpulaski@newmedia-wi.com
