Auditor issues clean opinion; West Bend shows $2.6M general fund drop and strong utility reserves

The city received a clean audit opinion for 2025, but officials heard about a $2.6 million net decrease in the general fund and several technical reporting items that the auditor flagged for disclosure.

Andrea Jansen, principal with Baker Tilly and the engagement lead, told the finance committee the firm was able to issue an unmodified opinion on the financial statements — commonly described as a clean opinion. “We were able to issue an unmodified opinion on the financial statements,” Andrea said.

Her presentation summarized several highlights: the general fund showed a net loss of about $2.6 million driven by lower transfers‑in and intergovernmental revenue timing and higher general government expenditures (notably health claims). Unassigned fund balance stood at about $8.9 million, which Andrea said equates to roughly 25.1% of the general fund budgeted expenditures and remains within the city’s policy range.

On debt, the city’s general obligation debt totaled about $68.9 million (about 28% of the state statutory limit of 5% of equalized value), well below the ceiling. Utility funds were described as healthy: the water utility had operating income of roughly $874,000 and about $3.9 million in unrestricted cash reserves, while the sewer utility had operating income near $1.5 million and unrestricted reserves of about $10.9 million.

Andrea also reviewed a reported internal control matter related to the level of assistance auditors provided in preparing financial statements and some adjusting entries for utility work order closeouts; she characterized the communication as typical for municipalities of West Bend’s size and not a disagreement with management.

Councilors thanked staff and the auditor for the work and asked follow‑up questions about reserve levels and months‑on‑hand calculations; the auditor said current reserve levels provide flexibility and remain satisfactory.