PRESCOTT – Marissa Powers, Audit Supervisor at Johnson Block & Company Inc., presented the City of Prescott’s 2023 annual audit report, highlighting key financial findings at the council meeting on Dec. 9. Powers said the audit resulted in an unmodified opinion, which she described as "a good or clean opinion" — the ideal outcome for the city's financial statements.

She shared key highlights from the 2023 financial statements, including a decrease in total assets for the General Fund, which dropped to $5.8 million compared to $6.3 million in 2022.

“The largest decrease in that was for cash,” Powers said about the reduction in cash reserves.

Liabilities and deferred inflows were approximately $2.8 million which was comparable to 2022 which was $3,492,905. The General Fund’s total balance decreased to about $2.9 million from $3.5 million the previous year.

Powers also reviewed revenue and expenditures for the General Fund, noting revenues of approximately $3.36 million and expenditures of approximately $4.04 million with other financing sources of $128,438, leading to a net decrease of $551,370.

Turning to utilities, Powers highlighted the financial performance of the city's water, sewer, and stormwater funds and noted that the water fund was the only fund that had a loss that year. “The water had a loss approximately $67,000,” Powers said.

The sewer fund generated a positive income of $176,000 and the stormwater fund reported a gain of about $14,000.

Regarding utility cash flows, Powers reported net inflows across all utilities, with the water fund showing approximately $312,000, the sewer fund $1.3 million, and stormwater $72,000. She also noted that property taxes remained relatively stable.

In conclusion, Powers emphasized a key point for the council's consideration.  

“One thing I did want to bring up on the presentation for the general fund, you had a net change in fund balance or decrease of $550,000. We’ve been talking as an audit firm. We just wanted to make sure that our boards that we present to are very aware of decreasing your fund balance or having net loss especially in your general fund,” Powers said.

Acknowledging the financial challenges many municipalities face, Powers urged caution.

“So just make sure that you’re aware that you’re not chipping too far at that fund balance and that you have enough in there for reserves and later on just in case something happens.” She also pointed out that some municipalities, having “chipped away” at their general fund balances, are now seeking referendums to replenish them.

Alderperson Maureen Otwell inquired about the potential need for additional support for the treasurer's office in the future, citing various needs highlighted in the audit report, and remarked that perhaps this is an area that will need to be looked at for future budgets.

 “We tend to take for granted that the office staff is capable and handling everything and maybe we’re asking too much,” she remarked.

Next, City Administrator Matt Wolf discussed approving the comprehensive plan update for the City of Prescott during the council meeting.

“Basically, what the comprehensive plan lays out is eight to nine different chapters for strategic planning covering things like agriculture, natural resources, economic development, land use planning, etc.,” Wolf explained.

He emphasized that the plan not only incorporates public input but also serves as a guiding document for zoning decisions and future funding priorities for the City of Prescott.

Although comprehensive plans typically span 20 years, Wisconsin State statutes require an update every 10 years. Wolf shared that Cedar Corporation has submitted a proposal for $22,500 to handle the update, which was previously approved as part of Prescott’s 2025 budget and will be funded from general fund reserves.

The Plan Commission approved the contract at its Dec. 2 meeting, and Wolf highlighted, “One of the things that we are going to be working on if this is approved is developing a full schedule that we share with Plan Commission and Council.”

He noted that they will be working to develop a survey to get community feedback as well, ensuring the update process remains reflective of public opinion.

Otwell expressed concern about the effectiveness of surveys, asking, “We don’t have a good return when we send out surveys. Are we going to have a draft that’s released to the public so that they can have some time to comment on that then?”

Wolf responded, explaining that a public hearing is required by law, and it will be advertised both online and in the newspaper to ensure the public has the opportunity to provide feedback.

 “And will the council be getting drafts as they’re finished?” she enquired further. Wolf assured her that the council would receive drafts and could also review Plan Commission packets and agendas as they become available.

Otwell expressed her approval, indicating her interest in staying closely involved with the process.

The council unanimously approved the agreement between the City of Prescott and Cedar Corporation to complete a comprehensive plan update per Wisconsin State Statute 66.1001 for $22,500.

Up next

Mayor Robert Daugherty announced several important dates during the meeting. He reminded the council that 2025 spring election papers for Ward 1 and Ward 2 are due by 4:30 p.m. Tuesday, Jan. 7. Additionally, he noted that there will be no Prescott City Council meeting on December 23rd.The next Plan Commission meeting will be held at 6 p.m. Monday, Jan. 6 while the next Health and Safety Committee meeting is at 5 p.m. Jan. 13. Finally, the Parks & Public Works meeting has been rescheduled to 5 p.m. Tuesday, Jan. 21.