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Audit shows water and sewer funds running deficits; trustees asked for rate-case follow-up
Summary
An auditor told Shiocton trustees the village ended 2025 with a $28,000 shortfall in the water fund and a $131,000 shortfall in the sewer fund; the board recently raised sewer rates and will review the effect after the 2026 audit and an expected Public Service Commission rate order for water.
An auditor from Rose & Associates told the Shiocton Village Board on April 13 that the village's water and sewer operations closed 2025 with material deficits and atypically negative rates of return.
Brianna Olsen, representing Rose & Associates via video call, summarized the firm's 2025 audit and management letter and said routine adjustments were made. She reported the village's water fund finished 2025 about $28,000 under water-operating revenues and the sewer fund about $131,000 under. With depreciation included, she gave the water operation a roughly -14.55% rate of return and the sewer operation about -95%.
Those shortfalls are the main financial concerns the board must monitor, Olsen said. The board voted earlier this year to increase sewer rates; Olsen said that action should improve the sewer position and that the 2026 audit will show whether additional changes are needed. She also said the water fund is nearing the end of a rate case process required by the Wisconsin Public Service Commission and that the commission's upcoming order will determine new water rates.
Olsen told trustees the general fund ended very close to budget and that the audit found the segregation-of-duties observations typical for a small municipality but noted the board has procedures for reviewing invoices and journal entries. Trustees had no substantive questions about the management letter and requested copies of the auditor's presentation slides for further review.
The board did not take immediate action on the audit other than to accept the presentation and obtain the speaker's materials; trustees said they will examine the 2026 audit results and rate-case outcome to decide whether further rate adjustments or other measures are necessary.
