Administration Committee Meeting — Agenda Packet

Administration Committee Agenda August 11, 2026 5:00 PM St. Croix County Government Center - Room 1400 Government Center - 1101 Carmichael Road, Hudson, Wisconsin Call to Order Roll Call Approval of Minutes 1. Minutes of Previous Meeting — July 14, 2026 Public Comment Business 1. Presentation of the 2026 Audit Report 2. Financial Report for June 2026 3. Review Updated Jail Addition Construction Costs 4. Consideration of Debt Financing Options for Large Capital Projects 5. Resolution Approving 2027 to 2031 Capital Improvement Plan 6. Resolution Authorizing General Fund Unassigned Fund Balance Transfer 7. Resolution Authorizing Health Care Campus Fund Balance Transfer 8. Resolution Approving the County Administrator 2025-2026 Work Plan Report and Establishing the County Administrator 2026-2027 Work Plan 9. Resolution Amending Personnel Policies - Background Check Policy 10. Resolution to Charge Back Municipalities Due to Incorrect Real Estate Taxes Request for Future Agenda Items Announcements Date of Next Meeting 1. Date of Next Meeting — September 8, 2026 Adjournment Page 1 of 201 Reasonable efforts will be made to provide special accommodations for access to public meetings. To request a special accommodation, please contact the County Clerk’s Office at (715) 386-4600 at least two business days prior to the time of the meeting. For more information on St. Croix County's public meetings visit: sccwi.gov/meetings Page 2 of 201 Page 3 of 201 Page 4 of 201 Page 5 of 201 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.  CliftonLarsonAllen LLP  CLAconnect.com  Honorable Members of the County Board of Supervisors St. Croix County, Wisconsin Hudson, Wisconsin We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of St. Croix County, Wisconsin as of and for the year ended December 31, 2025, and have issued our report thereon dated July 17, 2026. We have previously communicated to you information about our responsibilities under auditing standards generally accepted in the United States of America, Government Auditing Standards, and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State Single Audit Guidelines issued by the Wisconsin Department of Administration, as well as certain information related to the planned scope and timing of our audit in our statement of work dated July 24, 2025. Professional standards also require that we communicate to you the following information related to our audit. Significant audit findings or issues Qualitative aspects of accounting practices Accounting policies Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by St. Croix County, Wisconsin are described in Note 1 to the financial statements. We noted no transactions entered into by the entity during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. There were no accounting estimates affecting the financial statements which were particularly sensitive or required substantial judgments by management. The most sensitive estimates affecting the financial statements were: Estimated Claims Payable – Management’s estimate of claims payable accrued in the insurance internal service funds at December 31, 2025 is based on outside authoritative guidance. Actuarial Assumptions – The actuarial assumptions used for other postemployment benefits payable and pension related items are outlined in the notes to the basic financial statements. Page 6 of 201 Honorable Members of the County Board of Supervisors St. Croix County, Wisconsin Page 2 Financial statement disclosures Certain financial statement disc losures are particularly sensitive because of their significance to financial statement users. There were no particularly sensitive financial statement disclosures. The financial statement disclosures are neutral, consistent, and clear. Difficulties encountered in performing the audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Uncorrected misstatements Professional standards require us to accumulate all misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. Corrected misstatements The attached schedule summarizes all misstatements (material and immaterial) detected as a result of audit procedures that were corrected by management. Disagreements with management For purposes of this communication, a disagreement with management is a disagreement on a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. No such disagreements arose during our audit. Management representations We have requested certain representations from management that are included in the attached management representation letter dated July 17, 2026. Management consultations with other independent accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the entity’s financial statements or a determination of the type of auditors’ opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Significant issues discussed with management prior to engagement We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to engagement as the entity’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our engagement. Other audit findings or issues  We have provided a separate communication to you dated July 17, 2026, communicating internal control related matters identified during the audit. Page 7 of 201 Honorable Members of the County Board of Supervisors St. Croix County, Wisconsin Page 3 Required supplementary information With respect to the required supplementary information (RSI) accompanying the financial statements, we made certain inquiries of management about the methods of preparing the RSI, including whether the RSI has been measured and presented in accordance with prescribed guidelines, whether the methods of measurement and prepar ation have been changed from the prior period and the reasons for any such changes, and whether there were any significant assumptions or interpretations underlying the measurement or presentation of the RSI. We compared the RSI for consistency with management’s responses to the foregoing inquiries, the basic financial statements, and other knowledge obtained during the audit of the basic financial statements. Because these limited procedures do not provide sufficient evidence, we did not express an opinion or provide any assurance on the RSI. Supplementary information in relation to the financial statements as a whole With respect to the schedule of expenditures of federal and state awards (SEFA and SSFA) and accompanying the financial statements, on which we were engaged to report in relation to the financial statements as a whole, we made certain inquiries of management and evaluated the form, content, and methods of preparing the SEFA and SSFA to determine that the SEFA and SSFA complies with the requirements of the Uniform Guidance and State Single Audit Guidelines, the method of preparing it has not changed from the prior period or the reasons for such changes, and the SEFA and SSFA are appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the SEFA and SSFA to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We have issued our report thereon dated July 17, 2026. With respect to the combining and individual fund statements and schedules (collectively, the supplementary information) accompanying the financial statements, on which we were engaged to report in relation to the financial statements as a whole, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period or the reasons for such changes, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We have issued our report thereon dated July 17, 2026. This communication is intended solely for the information and use of the County Board and management of St. Croix County, Wisconsin and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Eau Claire, Wisconsin July 17, 2026 Page 8 of 201 7/28/2026 2:27 PM Client: A448013 - St. Croix County 0921.00 Engagement: AUD-SA2025 - St. Croix County, Wisconsin Trial Balance: 0900.01 - TB Workpaper: 0921.00 - Adjusting Journal Entries Report Account Description W/P Ref Debit Credit Adjusting Journal Entries JE # 2 225-0000-000000-14200-00000- Health and Human Services-Non\-Departmental-None-Due from State of Wiscons-None-None 31,106.00 701-1535-000000-55190-00000- Health Insurance-Health Insurance-None-Insurance Premium & Claim-None-None 18,069.16 225-4510-550877-43560-00000- Health and Human Services-HHS \- Children Services-CLTS Admin Other-State Human Services Gran-None-None 31,106.00 701-1535-000000-48410-00000- Health Insurance-Health Insurance-None-Insurance Recoveries -None-None 18,069.16 Total 49,175.16 49,175.16 Adjusting Journal Entries JE # 3 2352.00 702-0000-000000-11310-00000- Workers Compensation-Non\-Departmental-None-Temporary Cash Investment-None-None 1,551.25 702-1545-000000-55190-00000- Workers Compensation-Workers Compensation-None-Insurance Premium & Claim-None-None 1,551.25 Total 1,551.25 1,551.25 Adjusting Journal Entries JE # 4 2351.03 701-0000-000000-29620-00000- Health Insurance-Non\-Departmental-None-Accrued Employee Benefits-None-None 335,608.00 701-1535-000000-55190-00000- Health Insurance-Health Insurance-None-Insurance Premium & Claim-None-None 335,608.00 Total 335,608.00 335,608.00 Adjusting Journal Entries JE # 5 2605.00/2600.01 110-1610-000000-48210-00000- General-Facilities-None-Rent Revenue-None-None 32,911.56 110-1610-100643-48210-00000- General-Facilities-Department of Corrections-Rent Revenue-None-None 32,911.56 Total 32,911.56 32,911.56 Adjusting Journal Entries JE # 6 2600.02 110-1610-100640-48210-00000- General-Facilities-Ag Center -Rent Revenue-None-None 5,514.00 110-1610-100640-13087-00000- General-Facilities-Ag Center -Lease Receivable-None-None 5,514.00 Total 5,514.00 5,514.00 Adjusting Journal Entries JE # 7 2600.02 110-1610-100640-13087-00000- General-Facilities-Ag Center -Lease Receivable-None-None 378,931.02 110-1610-100640-26800-00000- General-Facilities-Ag Center -Deferred Inflow \- Leases-None-None 69,470.72 110-1610-100640-13087-00000- General-Facilities-Ag Center -Lease Receivable-None-None 61,919.83 110-1610-100640-26800-00000- General-Facilities-Ag Center -Deferred Inflow \- Leases-None-None 378,931.02 110-1610-100640-48210-00000- General-Facilities-Ag Center -Rent Revenue-None-None 7,550.89 Total 448,401.74 448,401.74 Adjusting Journal Entries JE # 8 2600.02 110-1610-100643-13087-00000- General-Facilities-Department of Corrections -Lease Receivable-None-None 1,623,238.03 110-1610-100643-26800-00000- General-Facilities-Department of Corrections -Deferred Inflow \- Leases-None-None 81,161.88 110-1610-100643-13087-00000- General-Facilities-Department of Corrections -Lease Receivable-None-None 51,167.08 110-1610-100643-26800-00000- General-Facilities-Department of Corrections -Deferred Inflow \- Leases-None-None 1,623,238.03 110-1610-100643-48210-00000- General-Facilities-Department of Corrections-Rent Revenue-None-None 29,994.80 Total 1,704,399.91 1,704,399.91 Adjusting Journal Entries JE # 9 1200.01 110-0000-000000-11710-00000- General-Non\-Departmental-None-Long\-Term Investments-None-None 519,338.45 310-0000-000000-11710-00000- General Obligation Bonds-Non\-Departmental-None-Long\-Term Investments-None-None 250.35 110-0000-000000-48110-00000- General-Non\-Departmental-None-Interest Revenue-None-None 519,338.45 310-8200-000000-49510-00000- General Obligation Bonds-Interest & Fiscal Charges-None-Proceeds of Refunding Bon-None-None 250.35 Total 519,588.80 519,588.80 Adjusting Journal Entries JE # 10 PBC 250-0000-000000-14400-00000- X 12,000.00 250-6310-000000-47310-00000- X 12,000.00 Total 12,000.00 12,000.00 Adjusting Journal Entries JE # 11 3000.10 110-0000-000000-34310-00000- General-Non\-Departmental-None-Unreserved and Undesignat-None-None 3,159.00 650-0000-000000-32600-00000- Highway-Non\-Departmental-None-Fund Balance-None-None 29,128.00 110-1410-000000-53910-00000- General-Administration-None-Other Supplies and Expens-None-None 3,159.00 650-3230-000000-48610-00000- Highway-Hwy Shop Operations Cost -None-Miscellaneous Revenue-None-None 29,128.00 Total 32,287.00 32,287.00 Adjusting Journal Entries JE # 12 2310.01 650-0000-000000-19650-00000- Highway-Non\-Departmental-None-OPEB Deferred Outflows-None-None 636.00 650-0000-000000-26650-00000- Highway-Non\-Departmental-None-OPEB Liability-None-None 5,941.00 650-0000-000000-26660-00000- Highway-Non\-Departmental-None-OPEB Deferred Inflows -None-None 89,540.00 650-3210-000000-51110-00000- Highway-Hwy Incidental Labor Cost-None-Salaries-None-None 96,117.00 Total 96,117.00 96,117.00 Adjusting Journal Entries JE # 13 0990.01 NRS - To move rent revenue from WI DOC to one consistent account NRS - To record 2015 Ag Center lease activity for 2025 PBC - Entries received 5.20.26 - HCC PBC - Village North Hudson comp plan revenue - work was done in 2025, billed and paid in 2026 TMM - to adjust highway OPEB NRS - To record year one activity for Ag Center (USDA) lease commencing 2025 NRS - To record year one activity for Hudson Lease (Department of Corrections/State of WI) lease commencing 2025 TMM - to record accrued interest per statements ARD - to adjust beginning fund balance to match PY audit PBC - Entries from Dustin on 5/8 ARD - to record the change in departmental cash held with WMMIC ARD - to record the change in IBNR liability 1 of 3 Page 9 of 201 7/28/2026 2:27 PM Client: A448013 - St. Croix County 0921.00 Engagement: AUD-SA2025 - St. Croix County, Wisconsin Trial Balance: 0900.01 - TB Workpaper: 0921.00 - Adjusting Journal Entries Report Account Description W/P Ref Debit Credit 610-4210-520952-52124-00000- Health Center Campus-HCC \- Skilled Nursing Fac-RN-Purchased Pool Staff-None-None 7,433.78 610-4210-520953-52124-00000- Health Center Campus-HCC \- Skilled Nursing Fac-LPN-Purchased Pool Staff-None-None 2,977.03 610-4210-520953-52124-00000- Health Center Campus-HCC \- Skilled Nursing Fac-LPN-Purchased Pool Staff-None-None 4,071.25 610-4210-520954-52124-00000- Health Center Campus-HCC \- Skilled Nursing Fac-C.N.A.-Purchased Pool Staff-None-None 7,091.50 610-4210-520954-52124-00000- Health Center Campus-HCC \- Skilled Nursing Fac-C.N.A.-Purchased Pool Staff-None-None 8,297.23 610-4210-590954-52124-00000- X 527.86 610-0000-000000-21110-00000- Health Center Campus-Non\-Departmental-None-Accounts Payable-None-None 11,162.75 610-4210-520952-52124-00000- Health Center Campus-HCC \- Skilled Nursing Fac-RN-Purchased Pool Staff-None-None 6,690.82 610-4210-520952-52125-00000- X 7,433.78 610-4210-520953-52124-00000- Health Center Campus-HCC \- Skilled Nursing Fac-LPN-Purchased Pool Staff-None-None 1,606.41 610-4210-520953-52125-00000- X 2,977.03 610-4210-521500-52125-00000- Health Center Campus-HCC \- Skilled Nursing Fac-Administration-Purchased Services-None-None 527.86 Total 30,398.65 30,398.65 Adjusting Journal Entries JE # 14 0990.01 701-1535-000000-48410-00000- Health Insurance-Health Insurance-None-Insurance Recoveries -None-None 18,069.16 701-1535-000000-55190-00000- Health Insurance-Health Insurance-None-Insurance Premium & Claim-None-None 18,069.16 Total 18,069.16 18,069.16 Adjusting Journal Entries JE # 15 0990.01 110-0000-000000-11110-00000- General-Non\-Departmental-None-Cash-None-None 752.40 110-0000-000000-13100-00000- General-Non\-Departmental-None-Receivables for Goods and-None-None 355.03 110-0000-000000-13100-00000- General-Non\-Departmental-None-Receivables for Goods and-None-None 424.97 110-1520-000000-57410-00000- General-County Treasurer-None-Losses-None-None 22.67 110-1520-000000-57410-00000- General-County Treasurer-None-Losses-None-None 59.05 110-1520-000000-57410-00000- General-County Treasurer-None-Losses-None-None 700.24 110-1520-000000-57410-00000- General-County Treasurer-None-Losses-None-None 5,001.94 110-1520-100555-46120-00000- General-County Treasurer-Title Search Fees-Treasurer's Fees-None-None 77.69 860-0000-000000-12640-00000- Treasurer Tax Accounts-Non\-Departmental-None-Delinquent Special Assess-None-None 2.40 860-0000-000000-21911-00000- Treasurer Tax Accounts-Non\-Departmental-None-Tax Items Due Individuals-None-None 750.00 860-0000-000000-21911-00000- Treasurer Tax Accounts-Non\-Departmental-None-Tax Items Due Individuals-None-None 8,519.02 860-0000-000000-24410-00000- Treasurer Tax Accounts-Non\-Departmental-None-Due to Other Cities, Vill-None-None 488,377.64 860-0000-100501-12100-00000- Treasurer Tax Accounts-Non\-Departmental-Town of Baldwin-Current Property Taxes Re-None-None 113,996.40 860-0000-100501-12100-00000- Treasurer Tax Accounts-Non\-Departmental-Town of Baldwin-Current Property Taxes Re-None-None 162,889.55 860-1520-000000-24100-00000- Treasurer Tax Accounts-County Treasurer-None-Due to U.S. Government-None-None 400.00 110-0000-000000-12350-00000- General-Non\-Departmental-None-Tax Deed-None-None 22.67 110-0000-000000-12350-00000- General-Non\-Departmental-None-Tax Deed-None-None 59.05 110-0000-000000-12350-00000- General-Non\-Departmental-None-Tax Deed-None-None 77.69 110-0000-000000-12350-00000- General-Non\-Departmental-None-Tax Deed-None-None 424.97 110-0000-000000-12350-00000- General-Non\-Departmental-None-Tax Deed-None-None 700.24 110-0000-000000-12350-00000- General-Non\-Departmental-None-Tax Deed-None-None 750.00 110-0000-000000-12350-00000- General-Non\-Departmental-None-Tax Deed-None-None 5,001.94 110-0000-000000-24412-00000- General-Non\-Departmental-None-Interest Due to Municipal-None-None 2.40 110-1520-100555-46120-00000- General-County Treasurer-Title Search Fees-Treasurer's Fees-None-None 355.03 860-0000-000000-11110-00000- Treasurer Tax Accounts-Non\-Departmental-None-Cash-None-None 752.40 860-0000-000000-14200-00000- Treasurer Tax Accounts-Non\-Departmental-None-Due from State of Wiscons-None-None 488,377.64 860-0000-000000-21910-00000- Treasurer Tax Accounts-Non\-Departmental-None-Other Accounts Payable-None-None 8,519.02 860-0000-000000-24410-00000- Treasurer Tax Accounts-Non\-Departmental-None-Due to Other Cities, Vill-None-None 400.00 860-0000-100502-12100-00000- Treasurer Tax Accounts-Non\-Departmental-Town of Cady-Current Property Taxes Re-None-None 162,889.55 860-0000-100512-12100-00000- Treasurer Tax Accounts-Non\-Departmental-Town of Pleasant Valley-Current Property Taxes Re-None-None 113,996.40 Total 782,329.00 782,329.00 Adjusting Journal Entries JE # 16 0990.01 110-1520-000000-52152-00000- General-County Treasurer-None-Bank Service Charges-None-None 2,741.53 110-0000-000000-21110-00000- General-Non\-Departmental-None-Accounts Payable-None-None 2,741.53 Total 2,741.53 2,741.53 Adjusting Journal Entries JE # 17 2105.00/1710.02a 405-7310-000000-58220-10115-00000 Capital Project-Capital Outlay Highway & -None-Capital Improvements-Hudson Highway Facility R-None 413,294.21 405-0000-000000-21110-00000-00000 Capital Project-Non\-Departmental-None-Accounts Payable-None-None 413,294.21 Total 413,294.21 413,294.21 Adjusting Journal Entries JE # 18 2105.00/1710.02a 405-7310-000000-58220-10115- Capital Project-Capital Outlay Highway & -None-Capital Improvements-Hudson Highway Facility R-None 30,356.23 405-0000-000000-21130-00000- Capital Project-Non\-Departmental-None-Retainage Payable-None-None 30,356.23 Total 30,356.23 30,356.23 Adjusting Journal Entries JE # 19 0990.01 225-0000-000000-13100-00000- Health and Human Services-Non\-Departmental-None-Receivables for Goods and-None-None 8,693.00 225-4310-560490-43560-00000- Health and Human Services-HHS \- Behavioral Health-Elder Abuse-State Human Services Gran-None-None 500.00 225-4610-560340-43560-00000- Health and Human Services-HHS \- Aging & Disability -Service Management III\-B-State Human Services Gran-None- 608.00 225-4610-560360-43560-00000- Health and Human Services-HHS \- Aging & Disability -Home Delivered Meals-State Human Services Gran-None-None 7,315.00 225-4610-560520-43560-00000- Health and Human Services-HHS \- Aging & Disability -NFCSP III\-E -State Human Services Gran-None-None 270.00 Total 8,693.00 8,693.00 Adjusting Journal Entries JE # 20 1311.00c 110-0000-000000-14100-00000- General-Non\-Departmental-None-Due from U.S. Government-None-None 2,231,214.17 110-0000-000000-13100-00000- General-Non\-Departmental-None-Receivables for Goods and-None-None 2,231,214.17 Total 2,231,214.17 2,231,214.17 Adjusting Journal Entries JE # 21 0990.01 405-7310-000000-58220-10115- Capital Project-Capital Outlay Highway & -None-Capital Improvements-Hudson Highway Facility R-None 24,670.48 650-0000-000000-11110-00000- Highway-Non\-Departmental-None-Cash-None-None 24,670.48 650-3270-000000-53440-00000- Highway-Hwy Buildings and Grounds-None-Operating Supplies-None-None 36,933.77 PBC - Entry received 5.21.26 - GWAAR TMM - to reclass sales tax receivable to due from other governments for F/S presentation REVERSE IN 2026 - TMM - to book Kraus invoice #74948 payment to AP PBC - Entry received 5.20.26. Bank Fees Nov/Dec PBC - to correct Highway CWIP REVERSE IN 2026 - TMM - to book Kraus invoice #74948 retainage PBC - Entry received 5.20.26 - Treasurer adjustments PBC - Entry received 5.20.26 - Optum 2 of 3 Page 10 of 201 7/28/2026 2:27 PM Client: A448013 - St. Croix County 0921.00 Engagement: AUD-SA2025 - St. Croix County, Wisconsin Trial Balance: 0900.01 - TB Workpaper: 0921.00 - Adjusting Journal Entries Report Account Description W/P Ref Debit Credit 405-0000-000000-11110-00000- Capital Project-Non\-Departmental-None-Cash-None-None 24,670.48 650-3240-000000-18710-00000- Highway-Hwy Machinery Operations -None-Work in Progress-None-None 24,670.48 650-3270-000000-18710-00000- Highway-Hwy Buildings and Grounds-None-Work in Progress-None-None 36,933.77 Total 86,274.73 86,274.73 Adjusting Journal Entries JE # 22 0990.01 110-0000-000000-14200-00000- General-Non\-Departmental-None-Due from State of Wiscons-None-None 56,244.27 110-2510-250600-43510-00000- General-ESS \- Emergency Managemen-EMPG-State General Government -None-None 56,244.27 Total 56,244.27 56,244.27 Adjusting Journal Entries JE # 23 0990.01 110-2110-210806-43510-00000- General-Law Enforcement-ICAC-State General Government -None-None 217.56 110-0000-000000-21110-00000- General-Non\-Departmental-None-Accounts Payable-None-None 217.56 Total 217.56 217.56 Adjusting Journal Entries JE # 24 1710.02a 405-7620-000000-58220-10099- Capital Project-Capital Outlay Parks-None-Capital Improvements-Glen Hills Campground Ent-None 20,850.00 405-0000-000000-21130-00000- Capital Project-Non\-Departmental-None-Retainage Payable-None-None 20,850.00 Total 20,850.00 20,850.00 Adjusting Journal Entries JE # 25 0990.01 701-0000-000000-13100-00000- Health Insurance-Non\-Departmental-None-Receivables for Goods and-None-None 161,121.60 701-1535-000000-48410-00000- Health Insurance-Health Insurance-None-Insurance Recoveries -None-None 161,121.60 Total 161,121.60 161,121.60 Adjusting Journal Entries JE # 26 2304.00 650-0000-000000-27005-00000-00000 Highway-Non/Departmental-NoneAccrued Employee Leave-LT 12,840.96 650-3110-000000-51210-00000-00000 Highway-Hwy Administration-None-Wages-None-None 12,840.96 Total 12,840.96 12,840.96 Adjusting Journal Entries JE # 27 0990.01 225-0000-000000-14200-00000- Health and Human Services-Non\-Departmental-None-Due from State of Wiscons-None-None 8,786.00 225-4510-550877-43560-00000- Health and Human Services-HHS \- Children Services-CLTS Admin Other-State Human Services Gran-None-None 8,786.00 Total 8,786.00 8,786.00 Adjusting Journal Entries JE # 28 2402.00 650-0000-000000-26600-00000-00000 Highway-Non\-Departmental-None-WRS Deferred Inflows of R-None-None 940,698.00 650-0000-000000-59000-00000-00000 Highway-Non\-Departmental-None-WRS Pension Expense 187,310.00 650-0000-000000-19700-00000-00000 Highway-Non\-Departmental-None-WRS Asset (Liability)-None-None 30,758.00 650-0000-000000-19750-00000-00000 Highway-Non\-Departmental-None-WRS Deferred Outflows-None-None 1,097,250.00 Total 1,128,008.00 1,128,008.00 Adjusting Journal Entries JE # 110 1370.00, 8075.13 120-5210-000000-26700-00000- Parks-CDD \- Parks-None-Deferred Unearned Revenue-None-None 31,080.08 120-5210-600350-43570-00000- Parks-CDD \- Parks-Snowmobile Trails-State Culture, Recreation-None-None 31,080.08 Total 31,080.08 31,080.08 Adjusting Journal Entries JE # 111 8075.19c 110-2510-250800-53250-00000- General-ESS \- Emergency Managemen-Computer Grant-Software Subscriptions & -None-None 4,514.58 110-2510-250800-43510-00000- General-ESS \- Emergency Managemen-Computer Grant-State General Government -None-None 4,514.58 Total 4,514.58 4,514.58 Adjusting Journal Entries JE # 112 PBC 110-1250-000000-43220-00000-00000 General-CJCC-None-Federal Transportation-None-None 2,021.23 110-1250-000000-46220-00000-00000 General-CJCC-None-Justice Services Fees-None-None 2,021.23 Total 2,021.23 2,021.23 Adjusting Journal Entries JE # 113 8075.14 120-0000-000000-14200-00000-00000 Parks-Non\-Departmental-None-Due from State of Wiscons-None-None 11,960.15 120-5210-600361-43570-00000-00000 Parks-CDD \- Parks-Recreational Boating Pine-State Culture, Recreation-None-None 11,960.15 Total 11,960.15 11,960.15 Adjusting Journal Entries JE # 114 0100.20 110-2110-000000-53110-00000-00000 General-Law Enforcement-None-Postage-None-None 13.54 290-0000-000000-11110-00000-00000 Stop Drug Calendar Contes-Non\-Departmental-None-Cash-None-None 13.54 110-0000-000000-11110-00000-00000 General-Non\-Departmental-None-Cash-None-None 13.54 290-2110-000000-53110-00000-00000 Stop Drug Calendar Contes-Law Enforcement-None-Postage-None-None 13.54 Total 27.08 27.08 TMM - to adjust highway liability to actual JDS - To clear Stop Drugs Calendar contest allocation as fund was closed in PY REVERSE IN 2026 - ARD - to book retainage on Glen Hills Entrance/Bathroom PBC - to record EMPG Revenue PBC - to set up AP for ICAC payment received in error ARD - to adjust highway WRS asset/liability/DI/DO EMS/PBC - to adjust justice support fees to normal account EMS - to book receivable for Recreational Boating Grant PBC - Healthpartners quarterly rebate for 2025 PBC - to record GEARS payment EMS - to adjust deferred revenue to actual for Parks (snowmobile trails and DOT loop trail) EMS - to reclass emergency management grant reimbursement 3 of 3 Page 11 of 201 Page 12 of 201 Page 13 of 201 Page 14 of 201 Page 15 of 201 Page 16 of 201 Page 17 of 201 Page 18 of 201 Page 19 of 201 Page 20 of 201 ST. CROIX COUNTY, WISCONSIN AUDIT SUMMARY DECEMBER 31, 2025 Page 21 of 201 ST. CROIX COUNTY, WISCONSIN, WISCONSIN TABLE OF CONTENTS DECEMBER 31, 2025 AUDIT REPORT SUMMARY 1 FINANCIAL STATEMENTS NOTATIONS 2 NEW ACCOUNTING AND REPORTING STANDARDS 6 Page 22 of 201 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.  CliftonLarsonAllen LLP  CLAconnect.com  (1) Audit Report Summary We prepared this Audit Summary in conjunction with our audit of St. Croix County’s (County) financial statements for the year ended December 31, 2025. The following is a summary of reports we have issued: General County Audit Opinion  The financial statements are fairly stated. We issued what is known as an “unmodified” audit opinion. Internal Controls Our report on internal control included the following deficiencies in internal controls over financial reporting. Please refer to the schedule of findings and questioned costs included in the Financial Statements and Supplementary Information Report for full details regarding these control deficiencies. Material Weaknesses: 2025-001 Material Audit Adjustments 2025-002 Limited Segregation of Duties Compliance and Internal Controls Over Compliance As part of our audit, we tested the County’s compliance with the requirements of laws, regulations, contracts and grants applicable to its federal and state programs as well as the County’s internal controls over compliance. Single audit report is still being finalized. All the testing is completed at this point we do not have any findings to report. Health Care Campus Audit Opinion The financial statements are fairly stated. We issued what is known as an “unmodified” audit opinion. Other Items As part of our audit, we also provided assistance with the following reports:  Unaudited Form A (Due May 15th)  Audited Form A and Tax 16 Report (Due July 31st)  Federal Single Audit Data Collection Form (Due September 30th)  Preparation of Medicare and Medicaid Cost Reports Page 23 of 201 APPENDIX A FINANCIAL STATEMENT NOTATIONS (Prepared in Conjunction with 2025 Audit) (2) The following information has been derived from management’s financial statements. These tables are not intended to present all of the information and disclosures required by accounting principles generally accepted in the United States of America. Rather, the tables presented below are offered for the purpose of providing a multi-year trend analysis for discussion purposes. We were not engaged nor do we provide an opinion on the tables presented below. Please contact the St. Croix County Administration Office for copies of management’s financial statements and refer to the independent auditors’ report included therein for the opinions issued in connection with those financial statements. 1 General Fund: The General fund is the general operating fund of the County. It is used to account for all financial resources which are not required to be accounted for in another fund. 2025 2024 2023 2022 General Fund Balance Sheet Summary: Cash and Investments 25,447,610$ 24,774,877$ 29,316,746$ 28,705,231$ Taxes Receivable: Current 26,279,065 26,212,655 26,214,353 25,078,895 Delinquent & Tax Deeds 1,116,745 1,198,872 1,065,279 933,574 Due from Other Funds 6,345 49,316 10,903 9,247 Long-Term Receivables 277 38,188 97,565 164,858 Lease Receivables 1,889,082 Other Receivables 4,461,977 3,890,462 3,435,429 3,159,045 Investment in Public-Entity Risk Pool 720,214 720,214 720,214 720,214 Prepayments/Other 9,942 21,083 20,940 15,686 Total Assets 59,931,257$ 56,905,667$ 60,881,429$ 58,786,750$ Current Payables 2,980,923$ 3,242,703$ 6,886,113$ 2,617,041$ Deferred Inflows 28,130,601 26,212,655 26,279,756 34,409,497 Total Liabilities and Deferred Inflows 31,111,524 29,455,358 33,165,869 37,026,538 Fund Balance: Nonspendable 1,847,178 1,978,357 1,903,998 1,834,332 Restricted 13,878 13,878 13,878 13,878 Assigned 1,083,401 1,769,788 1,688,064 1,654,081 Unassigned 25,875,276 23,688,286 24,109,620 18,257,921 Total Fund Balance 28,819,733 27,450,309 27,715,560 21,760,212 Total Liabilities Fund Balance 59,931,257$ 56,905,667$ 60,881,429$ 58,786,750$ Current Year Change: Total Fund Balance 1,369,424$ (265,251)$ 5,955,348$ (1,928,123)$ Unassigned Fund Balance 2,186,990$ (421,334)$ 5,851,699$ (1,494,939)$ Total Expenditures 52,125,665$ 50,383,674$ 47,695,501$ 43,559,856$ % of Unassigned Fund Balance to General Fund Expenditures 49.6% 47.0% 50.5% 41.9% Page 24 of 201 FINANCIAL STATEMENT NOTATIONS (CONTINUED) (Prepared in Conjunction with 2025 Audit) (3) 2 Special Revenue Funds: Special Revenue funds are used to account for the proceeds of specific revenue sources that are restricted to expenditures for specified purposes. 2025 2024 2023 2022 Health and Human Services Fund: Year-End Balance: Restricted -$ -$ 21,957$ 19,078$ Assigned 4,127,886 4,209,794 4,178,733 5,364,790 Total 4,127,886 4,209,794 4,200,690 5,383,868 Current Year Change (81,908) 9,104 (1,183,178) 1,675,711 Current Year Levy 9,815,676 8,301,613 7,891,840 7,346,819 Other Special Revenue Funds: Year-End Fund Balances: Jail Assessment Fund 466,492 446,288 488,410 484,645 K-9 Fund 1,865 6,101 12,367 20,772 St. Croix Valley Drug Task Force 105,956 102,860 41,648 38,800 County Drug Fund 91,803 106,952 48,919 40,623 Stop Drugs Fund - - (10,903) (9,197) Land Records 79,392 60,742 120,660 185,869 Dog License Fund 35,662 33,154 31,350 32,181 3 Capital Projects Funds: Capital Project funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities other than those financed from proprietary funds. 2025 2024 2023 2022 Capital Projects Funds 21,332,612$ 28,920,985$ 60,644,094$ 88,284,077$ 4 Debt Service Funds: Debt Service Funds are used for the accumulation of financial resources to be used for payment of long-term debt principal, interest and related fees. 2025 2024 2023 2022 Debt Service Fund 1,187,753$ 562,152$ 18,065$ 3,782,736$ Page 25 of 201 FINANCIAL STATEMENT NOTATIONS (CONTINUED) (Prepared in Conjunction with 2025 Audit) (4) 5 Enterprise Funds: Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprise--where the intent of the governing body is that the costs of providing the services is to be recovered from those using the services. 2025 2024 2023 2022 Balance Sheet Summary: Operating Cash and Investments 2,426,062$ 2,276,533$ 1,003,749$ 953,387$ Resident Trust Cash - - - - Donation Fund Cash 51,709 54,727 62,983 72,632 Accounts Receivable 683,153 618,681 862,178 784,265 WRS Pension Asset/Deferred Outflows 1,420,668 1,859,508 3,052,303 3,937,950 Capital Assets (net) 16,951,878 17,167,367 17,510,414 17,813,138 Total Assets 21,533,470$ 21,976,816$ 22,491,627$ 23,561,372$ Current Liabilities 449,817$ 574,396$ 665,486$ 494,839$ Patients Trust Funds Payable 6,158 5,950 7,559 7,717 Vested Benefits/OPEB 411,952 378,955 315,992 277,990 WRS Liability & WRS Deferred Inflow 940,652 1,325,661 2,543,256 3,160,960 Total Liabilities 1,808,579 2,284,962 3,532,293 3,941,506 Net Position: Net Investment in Capital Assets 16,951,878 17,167,367 17,510,414 17,813,138 Restricted 6,181 6,127 7,949 1,415,411 Unrestricted 2,766,832 2,518,360 1,440,971 391,317 Total Net Position 19,724,891 19,691,854 18,959,334 19,619,866 Total Liabilities and Net Position 21,533,470$ 21,976,816$ 22,491,627$ 23,561,372$ Current Year Change in Net Position: Change in Net Postion: 33,037$ 732,520$ (660,532)$ 295,552$ Prior Period Adjustment - - - (160,159) Change in Net Position 33,037$ 732,520$ (660,532)$ 135,393$ 2025 2024 2023 2022 Balance Sheet Summary: Cash and Investments 7,782,382$ 8,531,489$ 9,076,325$ 8,863,029$ Accounts Receivable 1,979,284 721,700 1,088,303 1,796,553 Other Assets/Prepayments 1,741,599 2,055,030 2,031,570 1,277,654 WRS Pension Asset/Deferred Outflows 2,726,922 3,823,536 6,020,081 7,444,179 Capital Assets (net) 35,754,994 35,938,264 35,074,161 34,962,180 Total Assets 49,985,181$ 51,070,019$ 53,290,440$ 54,343,595$ Current Liabilities 1,052,944$ 1,252,884$ 793,392$ 1,342,587$ Unearned Revenues 1,891,482 1,684,873 1,891,482 1,864,868 Vested Benefits/OPEB 449,030 1,015,252 690,728 869,159 WRS Liability & WRS Deferred Inflow 1,904,831 2,917,159 5,275,101 5,929,808 Total Liabilities 5,298,287 6,870,168 8,650,703 10,006,422 Net Position: Net Investment in Capital Assets 35,754,994 35,938,264 35,074,161 34,962,180 Restricted for WRS Pension Asset - - - 2,518,989 Unrestricted 8,931,900 8,261,587 9,565,576 6,856,004 Total Net Position 44,686,894 44,199,851 44,639,737 44,337,173 Total Liabilities and Net Position 49,985,181$ 51,070,019$ 53,290,440$ 54,343,595$ Net Cash, Receivables and Payables 8,708,722$ 8,000,305$ 9,371,236$ 9,316,995$ Change in Net Position 487,043$ (439,886)$ 302,564$ 1,003,293$ Current Year Levy 6,789,049$ 6,740,303$ 6,524,397$ 6,210,432$ Health Care Campus Highway Department Page 26 of 201 FINANCIAL STATEMENT NOTATIONS (CONTINUED) (Prepared in Conjunction with 2025 Audit) (5) 6 Internal Service Funds: Internal Service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the County, or to other governmental units, on a cost reimbursement basis. 2025 2024 2023 2022 Year-End Balances: Liability Insurance Fund 3,936,355$ 4,209,042$ 3,561,867$ 3,643,136$ Health Insurance Funds 5,091,689 3,888,131 1,987,554 3,240,433 Workers Compensation Fund 1,295,013 1,028,211 840,631 869,394 Retirement Health Savings Fund 2,326,960 2,460,311 2,193,219 2,079,501 County Fleet 155,690 156,364 141,728 170,684 Total Internal Service Funds 12,805,707$ 11,742,059$ 8,724,999$ 10,003,148$ 7 Long-Term Obligations 2025 2024 2023 2022 General Obligation Bonds 107,010,000$ 113,670,000$ 118,795,000$ 126,120,000$ General Obligation Notes 7,924,000 841,000 2,722,000 4,556,000 G.O. Debt Subtotal 114,934,000 114,511,000 121,517,000 130,676,000 Compensated Absences 3,786,864 6,984,265 5,655,839 4,149,315 Lease Liability 663,508 333,300 219,572 212,142 OPEB Liability 387,367 838,693 49,655 139,632 WRS Pension (Asset) Liability (7,542,031) (8,769,303) 12,146,382 (18,447,691) Unamortized Bond Premium 2,962,011 3,390,191 3,818,371 4,289,601 Total Long-Term Obligations 115,191,719$ 117,288,146$ 143,406,819$ 121,018,999$ Borrowing Capacity (5% of eq. value) 934,062,630$ 880,397,370$ 819,226,890$ 727,630,355$ General Obligation Debt as Percent of Debt Limitation 12.3% 13.0% 14.8% 18.0% Page 27 of 201 (6) NEW ACCOUNTING AND REPORTING STANDARDS The Governmental Accounting Standards Board (GASB) has issued new accounting standards that may restate portions of these financial statements in future periods. L isted below are the statements and a short summary of the standard’s object ive. New accounting standards effective for the December 31, 202 6 financial statements include: GASB Statement No. 103, Financial Reporting Model Improvements. The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This Statement also addresses certain application issues. GASB Statement No. 104, Disclosure Financial Reporting Model Improvements. The objective of this Statement is to enhance the transparency and usefulness of financial reporting by requiring governments to provide more detailed disclosures about specific types of capital assets. New accounting standards effective for the December 31, 202 7 financial statements include: GASB Implementation Guide 2025-1 The objective of this guide is to provide authoritative guidance that clarifies, explains, or elaborates on existing GASB Statements to ensure consistency and accurate application across government entities. The key topics covered are GASB 87 (leases), GASB 96 (Subscription -Based Information Technology Arrangements, and GASB 100 (Accounting Changes and Error Corrections). Page 28 of 201   Page 29 of 201 ST. CROIX COUNTY, WISCONSIN FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION YEAR ENDED DECEMBER 31, 2025 Page 30 of 201 ST. CROIX COUNTY, WISCONSIN TABLE OF CONTENTS YEAR ENDED DECEMBER 31, 2025 INDEPENDENT AUDITORS’ REPORT 1 MANAGEMENT’S DISCUSSION AND ANALYSIS 4 BASIC FINANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENTS STATEMENT OF NET POSITION 14 STATEMENT OF ACTIVITIES 15 FUND FINANCIAL STATEMENTS BALANCE SHEET – GOVERNMENTAL FUNDS 16 RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES TO GOVERNMENTAL ACTIVITIES – NET POSITION 17 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS 18 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS TO THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES – GOVERNMENTAL ACTIVITIES 19 STATEMENT OF NET POSITION – PROPRIETARY FUNDS 20 RECONCILIATION OF TOTAL ENTERPRISE FUND NET POSITION TO THE NET POSITION OF BUSINESS-TYPE ACTIVITIES – PROPRIETARY FUNDS 21 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION – PROPRIETARY FUNDS 22 RECONCILIATION OF ENTERPRISE FUND CHANGES IN NET POSITION TO THE BUSINESS-TYPE CHANGES IN NET POSITION – PROPRIETARY FUNDS 23 STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS 24 STATEMENT OF NET POSITION – FIDUCIARY FUNDS 26 STATEMENT OF CHANGES IN FIDUCIARY NET POSITION – FIDUCIARY FUNDS 27 NOTES TO BASIC FINANCIAL STATEMENTS 28 Page 31 of 201 ST. CROIX COUNTY, WISCONSIN TABLE OF CONTENTS (CONTINUED) YEAR ENDED DECEMBER 31, 2025 REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE – GENERAL FUND 1 71 BUDGETARY COMPARISON SCHEDULE – HEALTH AND HUMAN SERVICES SPECIAL REVENUE FUND 2 72 SCHEDULE OF PROPORTIONATE SHARE OF WISCONSIN RETIREMENT NET PENSION PLAN (ASSET) LIABILITY 3 73 SCHEDULE OF CONTRIBUTIONS TO WISCONSIN RETIREMENT NET PENSION PLAN 4 74 SCHEDULE OF CHANGES IN THE COUNTY’S OPEB LIABILITY AND RELATED RATIOS 5 75 NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 76 SUPPLEMENTARY INFORMATION COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET A-1 77 COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES A-2 78 GENERAL FUND DETAILED BALANCE SHEET B-1 79 STATEMENT OF CHANGES IN FUND BALANCE B-2 80 DETAILED SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET TO ACTUAL B-3 81 HIGHWAY DEPARTMENT ENTERPRISE FUND DETAILED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN NET POSITION C 85 INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION D-1 86 Page 32 of 201 ST. CROIX COUNTY, WISCONSIN TABLE OF CONTENTS (CONTINUED) YEAR ENDED DECEMBER 31, 2025 COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION D-2 87 COMBINING STATEMENT OF CASH FLOWS D-3 88 CUSTODIAL FUNDS COMBINING STATEMENT OF FIDUCIARY NET POSITION E-1 90 COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION E-2 91 OTHER REPORTS INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 92 SCHEDULE OF FINDINGS AND RESPONSES 94 Page 33 of 201 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.  CliftonLarsonAllen LLP  CLAconnect.com  (1) INDEPENDENT AUDITORS’ REPORT Honorable Members of the County Board of Supervisors St. Croix County, Wisconsin Hudson, Wisconsin Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of St. Croix County, Wisconsin, (the County) as of and for the year ended December 31, 2025, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the County as of December 31, 2025, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the County and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Page 34 of 201 Honorable Members of the County Board of Supervisors St. Croix County, Wisconsin (2) Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the County’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the County’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the County’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Page 35 of 201 Honorable Members of the County Board of Supervisors St. Croix County, Wisconsin (3) Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison schedules, pension schedules, and schedule of changes in the County’s OPEB liability and related ratios as referend in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County’s basic financial statements. The combining and individual fund statements, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining and individual fund statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated July 17, 2026, on our consideration of the County’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the County’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Hudson, Wisconsin July 17, 2026 Page 36 of 201 ST. CROIX COUNTY, WISCONSIN MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2025 (4) As management of St. Croix County, Wisconsin, (the County) we offer readers of the County’s financial statements this narrative overview and analysis of the financial activities of the County, for the fiscal year ended December 31, 2025. Readers are encouraged to consider the information presented here in conjunction with additional information that has been furnished in the County’s basic financial statements following this section. Financial Highlights  The assets and deferred outflows of resour ces of the County, exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $220,768,195 (net position). Of this amount, $135,900,176 represented the County’s net investment in capital assets, $801,229 was held for restricted purposes, and $84,066,790 was unrestricted. The unrestricted net position may be used to meet the government’s ongoing obligations to citizens and creditors.  During the fiscal year, the County’s total net position increased by $10,853,395. Net position related to the business-type activities of the County increased $867,620, while net position related to governmental activities increased $9,985,775.  At the close of the fiscal year, the County’s governmental funds reported a combined ending fund balance of $56,249,154, which represents a decrease of $5,650,183 from the previous year. This decrease was primarily due to operations of the capital projects fund.  At the end of the current fiscal year, unassigned fund balance for the general fund was $25,875,276 or 49.6% of total general fund expenditures. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to St. Croix County, Wisconsin’s basic financial statements. The County’s basic financial statements are comprised of three components: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to the basic financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements are designed to provide readers with a broad overview of St. Croix County, Wisconsin’s finances, in a manner similar to a private-sector business. The statement of net position presents information on all of St. Croix County, Wisconsin’s assets, liabilities, and deferred inflows/outflows, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the County is improving or deteriorating. The statement of activities presents informat ion showing how the County’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Page 37 of 201 ST. CROIX COUNTY, WISCONSIN MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2025 (5) Both of the government–wide financial statements distinguish functions of St. Croix County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the County include general government, public safety, transportation, sanitation, health and human services, conservation and development, and culture, recreation, and education. The business-type activities of the County include a nursing home and the highway department. The government-wide financial statements can be found beginning on page 14 of this report. Fund Financial Statements These statements are groupings of related accounts that are used to maintain control over resources that have been segregated for specific activities or objectives. St. Croix County, Wisconsin, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the County can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds – These funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. St. Croix County, Wisconsin, maintains four governmental fund types: (1) General, (2) Special Revenue, (3) Debt Service, and (4) Capital Projects. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, health and human services special revenue fund, the debt service fund, the Capital Projects Fund which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The basic governmental fund financial statements can be found beginning on page 16 of this report. Page 38 of 201 ST. CROIX COUNTY, WISCONSIN MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2025 (6) Proprietary Funds – St. Croix County, Wisconsin, maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The County uses enterprise funds to account for its Nursing Home and Highway department. Internal service funds are an accounting device used to accumulate and allocate costs internally among the County’s various functions. St. Croix County, Wisconsin, uses internal service funds to account for its Self-Funded Workers’ Compensation, Self- Funded Health Insurance, Self-Funded Liability Insurance, Retirement Health Savings Accounts, Health Retirement Liability Accounts, and County Fleet. Because these services benefit both governmental and business-type functions, they have been allocated to both functions in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Nursing Home and Highway department, which are both considered major funds. Conversely, the five internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found beginning on page 20 of this report. Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the County’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. Data from fiduciary funds are combined into a single aggregate presentation. Individual fund data for each fiduciary fund is provided in the form of combining statements elsewhere in this report. The basic fiduciary fund financial statements can be found on page 26 of this report. Notes to the Financial Statements – The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on page 28 of this report. Supplementary Information – In addition to the basic financial statements and accompanying notes, this report presents required supplementary information on the general fund and health and human services fund budgets, other postemployment benefits and pension schedules. Required supplementary information can be found beginning on page 77 of this report. The combining statements referred to earlier in connection with nonmajor governmental and internal service funds are presented immediately following the required supplementary information on the general fund budget. Combining fund statements and schedules can be found beginning on page 77 of this report. Page 39 of 201 ST. CROIX COUNTY, WISCONSIN MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2025 (7) Financial Analysis of the County as a Whole As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of St. Croix County, Wisconsin, assets exceeded liabilities by $220,768,195 at the close of the most recent fiscal year. The largest portion of St. Croix County, Wisconsin’s net position, $135,900,176 (61.5%) reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment); less any related debt used to acquire thos e assets that is still outstanding. The County uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the County’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Table A-1 St. Croix County, Wisconsin’s Net Position 2025 2024 2025 2024 2025 2024 ASSETS Current and Other Assets 128,593,230$ $131,856,756 14,664,189 $ $14,258,160 143,257,419 $ 146,114,916 $ Capital Assets 205,338,017 189,351,614 52,706,872 53,105,631 258,044,889 242,457,245 Internal Balances (1,383,907) (1,036,367) 1,383,907 1,036,367 - - Total Assets 332,547,340 320,172,003 68,754,968 68,400,158 401,302,308 388,572,161 DEFERRED OUTFLOWS OF RESOURCES 18,295,039 24,719,844 4,147,590 5,683,044 22,442,629 30,402,888 LIABILITIES Long-Term Obligations 127,285,502 126,489,886 2,255,786 2,175,442 129,541,288 128,665,328 Other Liabilities 10,180,853 11,670,434 2,701,311 3,383,678 12,882,164 15,054,112 Total Liabilities 137,466,355 138,160,320 4,957,097 5,559,120 142,423,452 143,719,440 DEFERRED INFLOWS OF RESOURCES 58,403,521 61,744,799 2,149,769 3,596,010 60,553,290 65,340,809 NET POSITION Net Investment in Capital Assets 83,193,304 67,158,286 52,706,872 53,105,631 135,900,176 120,263,917 Restricted 795,048 769,975 6,181 6,127 801,229 776,102 Unrestricted 70,984,151 77,058,467 13,082,639 11,816,314 84,066,790 88,874,781 Total Net Position 154,972,503 $ 144,986,728 $ 65,795,692 $ 64,928,072 $ 220,768,195 $ 209,914,800 $ Governmental Activities Business-Type Activities Total An additional portion of St. Croix County, Wisconsin’s net position, $801,229 (0.36%) represents resources that are subject to other restrictions on how they may be used. The remaining $84,066,760 of total net position (38.1%) may be used to meet the County’s ongoing obligations to citizens and creditors. It is important to note that $13,082,639 of the unrestricted net position is related to the County’s business-type activities. Consequently, they generally may not be available to fund governmental activities. The County’s net position increased $10,853,395 during the current fiscal year. The increase consisted of an increase in net position related to business-type activities in the amount of $867,620 and an increase in net position related to governmental activities in the amount of $9,985,775. Page 40 of 201 ST. CROIX COUNTY, WISCONSIN MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2025 (8) The following is a summary of the changes in the County’s net position for the years ended December 31: Table A-2 St. Croix County, Wisconsin’s Changes in Net Position 2025 2024 2025 2024 2025 2024 REVENUES Program Revenues: Charges for Services 12,514,268 $ 12,019,146 $ 32,661,039 $ 31,436,921 $ 45,175,307 $ 43,456,067 $ Operating Grants and Contributions 15,871,933 18,535,097 398,833 106,933 16,270,766 18,642,030 Capital Grants and Contributions 382,156 1,733,622 - - 382,156 1,733,622 General Revenues: Property Taxes 46,315,103 45,096,137 - - 46,315,103 45,096,137 Sales and Other Taxes 13,800,910 13,277,851 - - 13,800,910 13,277,851 State and Federal Aids not Restricted to Specific Programs 1,895,307 1,588,688 - - 1,895,307 1,588,688 Other 6,297,745 6,737,320 21,606 15,798 6,319,351 6,753,118 Total Revenues 97,077,422 98,987,861 33,081,478 31,559,652 130,158,900 130,547,513 EXPENSES General Government 21,042,953 23,707,057 - - 21,042,953 23,707,057 Public Safety 18,235,348 19,943,837 - - 18,235,348 19,943,837 Transportation 6,962,265 8,333,304 - - 6,962,265 8,333,304 Sanitation 273,061 282,239 - - 273,061 282,239 Health and Human Services 29,357,574 29,426,647 - - 29,357,574 29,426,647 Culture, Recreation and Education 5,170,892 3,244,661 - - 5,170,892 3,244,661 Conservation and Development 3,207,062 2,934,231 - - 3,207,062 2,934,231 Interest and Fiscal Charges 3,342,492 3,545,696 - - 3,342,492 3,545,696 Nursing Home - - 9,657,270 8,534,203 9,657,270 8,534,203 Highway Department - - 22,345,604 22,658,588 22,345,604 22,658,588 Total Expenses 87,591,647 91,417,672 32,002,874 31,192,791 119,594,521 122,610,463 CHANGE IN NET POSITION BEFORE TRANSFERS 9,485,775 7,570,189 1,078,604 366,861 10,564,379 7,937,050 TRANSFERS 500,000 (276,856) (210,984) 276,856 289,016 - CHANGE IN NET POSITION 9,985,775$ 7,293,333 $ 867,620 $ 643,717 $ 10,853,395 $ 7,937,050 $ Governmental Activities Business-Type Activities Total As noted above, the government activities net position increased and business-type activities net positions increased during the current fiscal year. A review of the statement of activities can provide a concise picture of how the various functions/programs of St. Croix County, Wisconsin are funded. The following charts draw data from the statement of activities. For governmental services the County is highly dependent on property taxes (48%) and operating grants/contributions (16%) for funding. Page 41 of 201 ST. CROIX COUNTY, WISCONSIN MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2025 (9) -$3,000,000 $2,000,000 $7,000,000 $12,000,000 $17,000,000 $22,000,000 $27,000,000 $32,000,000 2025 Expenses and Program Revenues - Governmental Activities Expenses Program Revenues Charges for Services, 13% Operating Grants and Contributions, 16% Capi tal Grants and Contributions, 0% Proper ty Taxes , 48% Sa les/Other Taxes, 14% Unsp ecified State/ Federal Aids, 2% Other, 7% 2025 Revenues by Source - Governmental Activities Page 42 of 201 ST. CROIX COUNTY, WISCONSIN MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2025 (10) In the case of business-type activities, the data shows a considerably different picture. Charges for services (99.6%) replace property taxes as the primary revenue. $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 Nursing Home Highway Department 2025 Expense and Program Revenues - Business-Type Activities Charges for Se rvices, 99.6% Operating Grants an d Contributions, .3% Other, .1% 2025 Revenues by Source - Business-Type Activities Page 43 of 201 ST. CROIX COUNTY, WISCONSIN MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2025 (11) Financial Analysis of the County’s Major Funds As noted earlier, St. Croix County, Wisconsin, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds – The focus of the County’s governmental funds is to provide information regarding near-term inflows, outflows and balances of spendable resources. Such information can be useful in assessing St. Croix County, Wisconsin’s financing requirements. In particular, the level of unrestricted fund balances may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of December 31, 2025, the County’s governmental funds reported combined ending fund balances of $56,249,154, a decrease of $5,650,183 from the previous year. Of this total fund balance, $3,829,979 is restricted or nonspendable for specific legal requirements and other outside requirements, leaving a total $52,419,175 available for spending at the discretion of the County. As the result of past actions and policy decisions and the nature of individual funds comprising the balances, $26,543,899 of these unrestricted balances have been segregated or otherwise committed and assigned for specific uses, leaving an unassigned fund balance of $25,875,276. The general fund is the primary operating fund used to account for the governmental operations of St. Croix County, Wisconsin. As a measure of the general fund’s liquidity, it may be useful to compare both total fund balance and unassigned fund balance to expenditures or revenues. The total year-end general fund balance represented 55.3% of total general fund expenditures reported on the statement of revenues, expenditures and changes in fund balances while the unassigned balance represented 49.6% of the same amount. The general fund’s total fund balance increased $1,369,424 during the year. The health and human services fund’s total fund balance decreased $81,908 during the year. The debt service fund balance totaled $1,187,753 at year-end. This balance is expected to be used to finance future debt service requirements. The capital projects fund has a fund balance of $21,332,612 that remains at year-end. The aggregated other governmental funds column includes various special revenue funds. The accumulated fund balances of these funds increased $25,073 and are individually detailed in the supplementary information section of this report. Proprietary Funds – St. Croix County, Wisconsin’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. As of December 31, 2025, the Nursing Home Fund operation reported net position of $19,724,891, an increase of $33,037 from the previous year. The Highway Fund operation reported net position of $44,686,894, an increase of $487,043 over the previous year. Page 44 of 201 ST. CROIX COUNTY, WISCONSIN MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2025 (12) General Fund Budgetary Highlights As shown in the Budgetary Comparison Schedule for the general fund (in required supplementary information), the final budget reflects a planned balanced budget in the general fund balance during 2025 and the County ended the year with positive budget variance for revenues and a positive budget variance for expenditures. Revenues were $4,296,076 more than the budgeted amounts while expenditures were $491,583 less than budgeted amounts. Capital Asset and Debt Administration Capital Assets St. Croix County, Wisconsin’s investment in capit al assets for its governmental and business-type activities as of December 31, 2025, amounts to $258,044,889 (net of accumulated depreciation and amortization). This investment in capital assets includes land, buildings, improvements, equipment, vehicles, and highway infrastructure. The net increase in the governmental activities capital assets was $15,986,403. The business-type activities capital as sets decreased by $398,759 (net of accumulated depreciation). Table A-3 St. Croix County, Wisconsin’s Capital Assets (Net of Depreciation and Amortization) 2025 2024 2025 2024 2025 2024 Land 5,841,394 $ 5,841,394 $ 1,191,092 $ 1,191,092 $ 7,032,486 $ 7,032,486 $ Land Improvements 2,335,413 2,670,286 1,249,153 1,332,553 3,584,566 4,002,839 Gravel Pits and Quarries - - 202,430 248,612 202,430 248,612 Buildings and Improvements 91,260,779 81,695,223 38,338,732 39,438,590 129,599,511 121,133,813 Equipment and Vehicles 10,750,678 12,001,444 10,582,578 9,493,528 21,333,256 21,494,972 Right-to-Use Lease Equipment 253,745 1,457 - - 253,745 1,457 Right-to-Use Lease Vehicles 412,852 357,578 - - 412,852 357,578 Highway Infrastructure 76,871,973 78,011,771 - - 76,871,973 78,011,771 Other Infrastructure 675,002 714,449 - - 675,002 714,449 Construction-in-Progress 16,936,181 8,058,012 1,142,887 1,401,256 18,079,068 9,459,268 Total 205,338,017 $ 189,351,614 $ 52,706,872 $ 53,105,631 $ 258,044,889 $ 242,457,245 $ Governmental Activities Business-Type Activities Total Additional information related to the County’s capital assets is reported in Note 4.C following the financial statements. Page 45 of 201 ST. CROIX COUNTY, WISCONSIN MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2025 (13) Long-Term Obligations At December 31, 2025, St. Croix County, Wisconsin had outstanding $129,541,288 of long-term debt and other long-term obligations. A summary detail of this amount, together with the percent change from the previous year, is shown below: Table A-4 St. Croix County, Wisconsin’s Outstanding Long-Term Obligations Percent 2025 2024 2025 2024 2025 2024 Chan ge General Obligation Debt: Bonds 107,010,000 $ 113,670,000 $ - $ - $ 107,010,000$ 113,670,000 $ (5.9)% Notes 7,924,000 841,000 - - 7,924,000 841,000 842.2 Premium (Discount) 2,962,011 3,390,191 - - 2,962,011 3,390,191 (12.6) Other Long-Term Obligations: Employee Leave 5,629,061 5,455,633 1,553,165 1,528,632 7,182,226 6,984,265 2.8 Lease Liability 663,508 333,300 - - 663,508 333,300 Wisconsin Retirement System Net Pension Liability 3,073,796 2,756,753 695,714 633,962 3,769,510 3,390,715 Other Postemployment Benefits Payable 23,126 43,009 6,907 12,848 30,033 55,857 (46.2) Total Debt 127,285,502 $ 126,489,886 $ 2,255,786 $ 2,175,442 $ 129,541,288 $ 128,665,328 $ Governmental Activities Business-Type Activities Total Under Wisconsin State Statutes, the outstanding general obligation long-term debt of a county may not exceed 5% of the equalized property value of all taxable property within the jurisdiction. The applicable debt of the County outstanding at December 31, 2025, totaled $114,934,000, approximately 12.3% of the maximum legal limit of $934,062,630. Additional information on St. Croix County, Wisconsin’s long- term debt is reported in Note 4.E following the financial statements. Economic Factors and Next Year’s Budget and Rates The economic condition and outlook of the County continues to improve. Total equalized value of the County increased from $17,607,947,400 in 2024 to $18,681,252,600 in 2025. St. Croix County, Wisconsin continues to be one of the fastest growing counties in the state. For 2025, all Wisconsin counties were again mandated by state statute, to limit property tax increases to 0% or net new construction growth, whichever is greater. St. Croix County, Wisconsin had 1.96% net new construction in 2025, as growth in the County continues to increase. Transportation system improvements in the regi on and proximity the Minneapolis metro area continue to support strong growth and property value increases. Requests for Information This financial report is designed to provide a general overview of St. Croix County, Wisconsin’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the St. Croix County Finance Director, 1101 Carmichael Road, Hudson, Wisconsin 54016. Page 46 of 201 BASIC FINANCIAL STATEMENTS Page 47 of 201 GOVERNMENT-WIDE FINANCIAL STATEMENTS Page 48 of 201 ST. CROIX COUNTY, WISCONSIN STATEMENT OF NET POSITION DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (14) Governmental Business-Type Activities Activities Total ASSETS Cash and Investments 69,953,295$ 10,208,444$ 80,161,739$ Deposit in Public Entity Risk Pool 720,214 - 720,214 Taxes Receivable 48,296,645 - 48,296,645 Accounts Receivable, Net 3,827,006 818,973 4,645,979 Lease Receivable 1,889,082 - 1,889,082 Due from Other Governments 3,896,769 1,843,464 5,740,233 Internal Balances (1,383,907) 1,383,907 - Long-Term Receivables 277 - 277 Other Assets and Prepaid Items 9,942 1,741,599 1,751,541 Restricted Assets: Cash and Investments - 51,709 51,709 Capital Assets: Capital Assets Not being Depreciated 40,894,427 2,536,409 43,430,836 Capital Assets being Depreciated 299,269,010 77,670,023 376,939,033 Accumulated Depreciation (134,825,420) (27,499,560) (162,324,980) Total Assets 332,547,340 68,754,968 401,302,308 DEFERRED OUTFLOWS OF RESOURCES Wisconsin Retirement System Pension Related 18,201,853 4,119,755 22,321,608 Other Postemployment Benefits Related 93,186 27,835 121,021 Total Deferred Outflows of Resources 18,295,039 4,147,590 22,442,629 LIABILITIES Vouchers and Accounts Payable 5,641,023 323,827 5,964,850 Accrued Payroll 1,206,588 434,316 1,640,904 Accrued Claims Payable 817,941 - 817,941 Payroll Deductions 763,769 - 763,769 Accrued Interest 926,541 - 926,541 Due to Other Governments 398,432 - 398,432 Unearned Revenues 328,017 1,891,482 2,219,499 Special Deposits 98,542 51,686 150,228 Long-Term Liabilities: Amount Due Within One Year 10,723,977 699,090 11,423,067 Amounts Due in More than One Year 113,464,603 854,075 114,318,678 Wisconsin Retirement System Net Pension Liability 3,073,796 695,714 3,769,510 Total Other Postemployment Benefit Liability 23,126 6,907 30,033 Total Liabilities 137,466,355 4,957,097 142,423,452 DEFERRED INFLOWS OF RESOURCES Property Taxes for Subsequent Year 47,179,900 - 47,179,900 Deferred Inflows Related to Leases 1,851,536 - 1,851,536 Wisconsin Retirement System Pension Related 8,978,010 2,032,057 11,010,067 Other Postemployment Benefits Related 394,075 117,712 511,787 Total Deferred Inflows of Resources 58,403,521 2,149,769 60,553,290 NET POSITION Net Investment in Capital Assets 83,193,304 52,706,872 135,900,176 Restricted for: Federal and State Grant Programs 781,170 - 781,170 Sheriffs Department 13,878 13,878 Donation Funds - 6,181 6,181 Unrestricted 70,984,151 13,082,639 84,066,790 Total Net Position 154,972,503$ 65,795,692$ 220,768,195$ Page 49 of 201 ST. CROIX COUNTY, WISCONSIN STATEMENT OF ACTIVITIES YEAR ENDED DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (15) Operating Capital Charges Grants and Grants and Governmental Business-Type Functions/Programs Expenses for Services Contributions Contributions Activities Activities Total Primary Government: Governmental Activities: General Government 21,042,953$ 2,871,898$ 860,951$ -$ (17,310,104)$ -$ (17,310,104)$ Public Safety 18,235,348 769,971 841,298 - (16,624,079) - (16,624,079) Transportation 6,962,265 - 2,487,184 382,156 (4,092,925) - (4,092,925) Sanitation 273,061 6,620 222,991 - (43,450) - (43,450) Health and Human Services 29,357,574 7,801,532 10,569,803 - (10,986,239) - (10,986,239) Culture, Recreation, and Education 5,170,892 380,589 264,689 - (4,525,614) - (4,525,614) Conservation and Development 3,207,062 683,658 625,017 - (1,898,387) - (1,898,387) Interest and Fiscal Charges 3,342,492 - - - (3,342,492) - (3,342,492) Total Governmental Activities 87,591,647 12,514,268 15,871,933 382,156 (58,823,290) - (58,823,290) Business-Type Activities: Nursing Home 9,657,270 9,652,709 398,833 - - 394,272 394,272 Highway Department 22,345,604 23,008,330 - - - 662,726 662,726 Total Business-Type Activities 32,002,874 32,661,039 398,833 - - 1,056,998 1,056,998 Total Primary Government 119,594,521$ 45,175,307$ 16,270,766$ 382,156$ (58,823,290) 1,056,998 (57,766,292) 46,315,103 - 46,315,103 13,190,430 - 13,190,430 610,480 - 610,480 1,895,307 - 1,895,307 4,771,380 - 4,771,380 1,526,365 21,606 1,547,971 500,000 (210,984) 289,016 68,809,065 (189,378) 68,619,687 9,985,775 867,620 10,853,395 144,986,728 64,928,072 209,914,800 154,972,503$ 65,795,692$ 220,768,195$ Program Revenues Net Revenue (Expense) and Changes in Net Position GENERAL REVENUES AND TRANSFERS Taxes: Property Taxes Sales Taxes Other Taxes State and Federal Aids Not Restricted to Specific Programs Interest and Investment Earnings Miscellaneous Transfers Total General Revenues and Transfers CHANGE IN NET POSITION NET POSITION - END OF YEAR Net Position - Beginning of Year Page 50 of 201 FUND FINANCIAL STATEMENTS Page 51 of 201 ST. CROIX COUNTY, WISCONSIN BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (16) Health Nonmajor and Human Debt Capital Governmental General Fund Services Fund Service Fund Projects Fund Funds Total ASSETS Treasurer's Cash and Investments 25,447,610 $ 3,829,475 $ 1,188,328 $ 24,748,338 $ 794,203 $ 56,007,954 $ Taxes Receivable 27,395,810 10,615,714 10,285,121 - - 48,296,645 Accounts Receivable (Net) 2,133,213 1,252,621 - 169,468 12,376 3,567,678 Lease Receivable 1,889,082 - - - - 1,889,082 Due from Other Governments 2,328,764 1,547,013 - - 20,992 3,896,769 Due from Other Funds 6,345 - - - - 6,345 Prepaid Items 9,942 - - - - 9,942 Long-Term Receivables 277 - - - - 277 Deposit in Public-Entity Risk Pool 720,214 - - - - 720,214 Total Assets 59,931,257$ 17,244,823 $ 11,473,449 $ 24,917,806 $ 827,571 $ 114,394,906 $ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES LIABILITIES Vouchers and Accounts Payable 757,859 $ 702,400 $ 575 $ 3,585,194$ 13,974 $ 5,060,002 $ Accrued Payroll 759,065 445,827 - - 1,696 1,206,588 Payroll Deductions 763,769 - - - - 763,769 Due to Other Governmental Units 374,046 - - - 24,386 398,432 Due to Other Funds - - - - 6,345 6,345 Unearned Revenues 309,370 18,647 - - - 328,017 Special Deposits 16,814 81,728 - - - 98,542 Total Liabilities 2,980,923 1,248,602 575 3,585,194 46,401 7,861,695 DEFERRED INFLOWS OF RESOURCES Succeeding Year's Property Taxes 26,279,065 10,615,714 10,285,121 - - 47,179,900 Deferred Inflows Related to Leases 1,851,536 - - - - 1,851,536 Unavailable Revenue - Other - 1,252,621 - - - 1,252,621 Total Deferred Inflows of Resources 28,130,601 11,868,335 10,285,121 - - 50,284,057 FUND BALANCES Nonspendable 1,847,178 - - - - 1,847,178 Restricted 13,878 - 1,187,753 - 781,170 1,982,801 Assigned 1,083,401 4,127,886 - 21,332,612 - 26,543,899 Unassigned 25,875,276 - - - - 25,875,276 Total Fund Balances 28,819,733 4,127,886 1,187,753 21,332,612 781,170 56,249,154 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 59,931,257 $ 17,244,823 $ 11,473,449 $ 24,917,806 $ 827,571 $ 114,394,906 $ Page 52 of 201 ST. CROIX COUNTY, WISCONSIN RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES TO GOVERNMENTAL ACTIVITIES – NET POSITION DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (17) Total Fund Balance - Governmental Funds 56,249,154$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. These assets consist of: Land 5,841,394 Land Improvements 4,912,907 Buildings and Improvements 120,374,043 Machinery and Equipment 26,708,680 Right-to-Use Lease Equipment 308,300 Right-to-Use Lease Vehicles 721,989 Infrastructure 164,359,943 Construction Work-in-Progress 16,936,181 Accumulated Depreciation (134,825,420) Total 205,338,017 Some receivables are reported as deferred inflows of resources in the fund financial statements but are recognized as revenue when earned in the government-wide statements: Health and Human Services Receivables 1,252,621 Pension and other postemployment benefits assets or liabilities and related deferred outflows and inflows of resources, as applicable, are recorded only on the statement of net position. Balances at year-end are: Total Other Postemployment Benefits Liability (23,126) Other Postemployment Benefits Related Deferred Outflow of Resources 93,186 Other Postemployment Benefits Related Deferred Inflow of Resources (394,075) Net Pension Liability (3,073,796) Pension Related Deferred Inflow of Resources (8,978,010) Pension Related Deferred Outflow of Resources 18,201,853 Total 5,826,032 Some liabilities are not due and payable in the current period and, therefore, are not reported in the funds. These liabilities consist of: Bonds Payable 107,010,000 Notes Payable 7,924,000 Accrued Interest 926,541 Lease Liability 663,508 Employee Leave Liability 5,629,061 Total (122,153,110) Discounts and premiums are amortized over the lives of the related debt in the statement of net position. in the governmental funds these costs are considered expenditures/other financing uses when incurred. (2,962,011) The internal service funds are used by County management to charge the costs of the self-funded insurance programs to functions. the assets and liabilities of the self-funded insurance programs are reported as governmental activities. 11,421,800 Net Position of Governmental Activities 154,972,503$ Page 53 of 201 ST. CROIX COUNTY, WISCONSIN STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (18) Health Nonmajor and Human Debt Capital Governmental General Fund Services Fund Service Fund Projects Fund Funds Total REVENUES Taxes 40,013,565$ 9,815,676$ 10,286,772$ -$ -$ 60,116,013$ Intergovernmental 8,176,505 9,509,499 - 382,156 58,311 18,126,471 Licenses and Permits 542,827 - - - - 542,827 Fines and Forfeits 244,448 - - - 113,413 357,861 Public Charges for Services 3,546,966 7,788,474 - - 149,764 11,485,204 Intergovernmental Charges for Services 141,721 13,058 - - - 154,779 Miscellaneous: Investment Income 4,514,437 - 286,236 256,943 - 5,057,616 Rent 261,363 - - - - 261,363 Other 53,257 814,436 - 62,720 48,353 978,766 Total Revenues 57,495,089 27,941,143 10,573,008 701,819 369,841 97,080,900 EXPENDITURES General Government 15,017,903 - - - 181,523 15,199,426 Public Safety 19,854,028 - - - 144,345 19,998,373 Transportation 9,276,233 - - - - 9,276,233 Sanitation 274,054 - - - - 274,054 Health and Human Services 1,292,265 28,023,051 - - 18,900 29,334,216 Culture, Recreation, and Education 3,230,764 - - - - 3,230,764 Conservation and Development 3,180,418 - - - - 3,180,418 Capital Outlay - - - 19,457,215 - 19,457,215 Debt Service: Principal Retirement - - 7,077,000 - - 7,077,000 Interest and Fiscal Charges - - 3,870,407 - - 3,870,407 Total Expenditures 52,125,665 28,023,051 10,947,407 19,457,215 344,768 110,898,106 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 5,369,424 (81,908) (374,399) (18,755,396) 25,073 (13,817,206) OTHER FINANCING SOURCES (USES) Refunding Notes Issued - - - 7,500,000 - 7,500,000 Proceeds from Sale of Assets - - - 167,023 - 167,023 Transfers In - - 1,000,000 3,500,000 - 4,500,000 Transfers Out (4,000,000) - - - - (4,000,000) Total Other Financing Sources (Uses) (4,000,000) - 1,000,000 11,167,023 - 8,167,023 NET CHANGE IN FUND BALANCES 1,369,424 (81,908) 625,601 (7,588,373) 25,073 (5,650,183) Fund Balances - Beginning of Year 27,450,309 4,209,794 562,152 28,920,985 756,097 61,899,337 FUND BALANCES - END OF YEAR 28,819,733$ 4,127,886$ 1,187,753$ 21,332,612$ 781,170$ 56,249,154$ Page 54 of 201 ST. CROIX COUNTY, WISCONSIN RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS TO THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES – GOVERNMENTAL ACTIVITIES YEAR ENDED DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (19) Net Change in Fund Balances - Total Governmental Funds (5,650,183)$ Amounts reported for governmental activities in the statement of activities are different because: Capital outlays are reported as expenditures in governmental funds. However, in the statement of activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. in the current period, these amounts are: Capital Expenses Reported in the Functional Expenditures of Governmental Fund Statements 23,851,541 Capital Outlays Reported in Governmental Fund Statements 5,406,653 Depreciation Expense Reported in the Statement of Activities (12,493,793) Total 16,764,401 In the statement of activities, only the gain (loss) on the disposal of capital assets is reported whereas in the governmental funds, the proceeds from sales increase financial resources and trade-ins are not reflected in capital outlays. (777,998) Receivables not currently available are reported as deferred inflows of resources in the fund financial statements but are recognized as revenue when earned in the government-wide statements. (3,478) Pension and other postemployment benefit expenditures in the governmental funds are measured by current year employee contributions. Pension and total other postemployment benefit expenses on the statement of activities are measured by the change in net pension and total other postemployment benefits assets or liabilities and related deferred outflows and inflows of resources. (664,354) Long-term debt incurred in governmental funds is reported as an other financing source, but is reported as an increase in outstanding long-term debt in the statement of net assets and does not affect the statement of activities. Long-term debt incurred in the current year is: General Obligation Notes (7,500,000) Repayment of long-term debt is reported as an expenditure in governmental funds, but the repayment reduces long-term liabilities in the statement of net position. In the current year, these amounts consist of: General Obligation Bond Principal Retirement 6,660,000 General Obligation Notes Principal Retirement 417,000 Total 7,077,000 The internal service fund is used by the County management to charge the costs of the various self-funded insurance program to functions. the change in net position of these internal service funds are allocated to governmental activities and business-type activities. 716,108 Some items reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. These activities consist of: Net Change in Accrued Interest 99,735 Net Change in Employee Leave Liability (173,428) Net Change in Lease Liability (330,208) Net Change in Bond Discounts/Premiums 428,180 Total 24,279 Change in Net Position of Governmental Activities 9,985,775$ Page 55 of 201 ST. CROIX COUNTY, WISCONSIN STATEMENT OF NET POSITION PROPRIETARY FUNDS DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (20) Nursing Highway Internal Home Department Total Service Funds ASSETS Current Assets: Cash and Investments 2,426,062$ 7,782,382$ 10,208,444$ 13,542,270$ Cash and Investments Held by Fiscal Agents - - - 403,071 Accounts Receivable 24,336 135,820 160,156 259,328 Resident Accounts Receivable, Net 658,817 - 658,817 - Due from Other Governmental Units - 1,843,464 1,843,464 - Other Assets and Prepaid Items - 1,741,599 1,741,599 - Total Current Assets 3,109,215 11,503,265 14,612,480 14,204,669 Restricted Assets: Cash and Investments: Donation Funds 51,709 - 51,709 - Capital Assets: Capital Assets 23,173,965 55,889,580 79,063,545 - Less: Accumulated Depreciation 6,222,087 21,277,473 27,499,560 - Net Capital Assets 16,951,878 34,612,107 51,563,985 - Construction Work-in-Progress - 1,142,887 1,142,887 - Total Capital Assets 16,951,878 35,754,994 52,706,872 - Total Assets 20,112,802 47,258,259 67,371,061 14,204,669 DEFERRED OUTFLOWS OF RESOURCES Wisconsin Retirement System Pension Related 1,420,668 2,699,087 4,119,755 - Other Postemployment Benefit Items - 27,835 27,835 - Total Deferred Outflows of Resources 1,420,668 2,726,922 4,147,590 - LIABILITIES Current Liabilities: Accounts Payable 86,544 237,283 323,827 581,021 Accrued Payroll 178,944 255,372 434,316 - Accrued Claims Payable - - - 817,941 Accrued Employee Leave 138,801 560,289 699,090 - Unearned Revenues - 1,891,482 1,891,482 - Security Deposits Payable 45,528 - 45,528 - Resident Trust Funds 6,158 - 6,158 - Total Current Liabilities 455,975 2,944,426 3,400,401 1,398,962 Long-Term Liabilities, Net of Current Portion: Accrued Employee Leave 411,952 442,123 854,075 - Total Other Postemployment Benefits Liability - 6,907 6,907 - Wisconsin Retirement System Net Pension Liability 239,912 455,802 695,714 - Total Long-Term Liabilities 651,864 904,832 1,556,696 - Total Liabilities 1,107,839 3,849,258 4,957,097 1,398,962 DEFERRED INFLOWS OF RESOURCES Wisconsin Retirement System Pension Items 700,740 1,331,317 2,032,057 - Other Postemployment Benefit Items - 117,712 117,712 - Total Deferred Inflows of Resources 700,740 1,449,029 2,149,769 - NET POSITION Net Investment in Capital Assets 16,951,878 35,754,994 52,706,872 - Restricted for Donation Funds 6,181 - 6,181 - Unrestricted 2,766,832 8,931,900 11,698,732 12,805,707 Total Net Position 19,724,891$ 44,686,894$ 64,411,785$ 12,805,707$ Business-Type Activities - Enterprise Funds Page 56 of 201 ST. CROIX COUNTY, WISCONSIN RECONCILIATION OF TOTAL ENTERPRISE FUND NET POSITION TO THE NET POSITION OF BUSINESS-TYPE ACTIVITIES PROPRIETARY FUNDS DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (21) Total Net Position - Enterprise Funds 64,411,785$ Amounts reported for business-type activities in the statement of net position are different because: The internal service funds are used by County's management to charge the costs of the self-funded insurance programs to functions. The assets and liabilities of the self-funded insurance programs are allocated between governmental activities and business-type activities. 1,383,907 Net Position of Business-Type Activities 65,795,692$ Page 57 of 201 ST. CROIX COUNTY, WISCONSIN STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS YEAR ENDED DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (22) Nursing Highway Internal Home Department Total Service Funds OPERATING REVENUES Charges for Services 9,647,135 $ 20,193,130 $ 29,840,265 $ 13,812,232 $ Miscellaneous 5,574 2,815,200 2,820,774 1,851,963 Total Operating Revenues 9,652,709 23,008,330 32,661,039 15,664,195 OPERATING EXPENSES Daily Patient Services 3,876,987 - 3,876,987 - Special Services 2,918,827 - 2,918,827 - Transportation Services - 18,812,633 18,812,633 140,692 Premiums and Claims - - - 13,760,007 General and Administrative 2,318,846 1,478,019 3,796,865 745,119 Depreciation 705,726 2,230,635 2,936,361 - Total Operating Expenses 9,820,386 22,521,287 32,341,673 14,645,818 OPERATING INCOME (LOSS) (167,677) 487,043 319,366 1,018,377 NONOPERATING REVENUES (EXPENSES) Interest Revenue - - - 45,271 Supplemental Payment Revenue 387,205 - 387,205 - Insurance Reimbursement 21,606 - 21,606 - Restricted Donations Received 11,628 - 11,628 - Restricted Donations Expended (8,741) - (8,741) - Total Nonoperating Revenues (Expenses) 411,698 - 411,698 45,271 INCOME BEFORE TRANSFERS AND CAPITAL CONTRIBUTIONS 244,021 487,043 731,064 1,063,648 TRANSFERS AND CAPITAL CONTRIBUTIONS Transfer Out (500,000) - (500,000) - Capital Contribution from Governmental Funds 289,016 - 289,016 - Total Transfers and Capital Contributions (210,984) - (210,984) - CHANGE IN NET POSITION 33,037 487,043 520,080 1,063,648 Net Position - Beginning of Year 19,691,854 44,199,851 63,891,705 11,742,059 NET POSITION - END OF YEAR 19,724,891$ 44,686,894 $ 64,411,785 $ 12,805,707 $ Business-Type Activities - Enterprise Funds Page 58 of 201 ST. CROIX COUNTY, WISCONSIN RECONCILIATION OF ENTERPRISE FUND CHANGES IN NET POSITION TO THE BUSINESS-TYPE CHANGES IN NET POSITION PROPRIETARY FUNDS YEAR ENDED DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (23) Net Change in Net Position for Enterprise Funds 520,080$ Amounts reported for business-type activities in the statement of activities are different because: The internal service fund is used by the County's management to charge the costs of the various self-funded insurance program to functions. The change in net position of these internal service funds is allocated to governmental activities business-type activities. 347,540 Change in Net Position of Business-Type Activities 867,620$ Page 59 of 201 ST. CROIX COUNTY, WISCONSIN STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (24) Internal Nursing Highway Service Home Department Total Funds CASH FLOWS FROM OPERATING ACTIVITIES Cash Received for Services Provided 9,585,165$ 21,957,355$ 31,542,520$ 15,695,739$ Cash Paid to Suppliers for Goods and Services (6,101,838) (20,505,160) (26,606,998) - Cash Paid for Employee Services (3,047,501) (153,937) (3,201,438) - Cash Paid for Claims/Premiums/Administrative Services - - - (15,205,177) Net Cash Provided by Operating Activities 435,826 1,298,258 1,734,084 490,562 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Other Nonoperating Income 21,606 - 21,606 - Net Change in Restricted Funds 3,095 - 3,095 - Cash Received from Supplement Payment Program 387,205 - 387,205 - Net Cash Provided by Noncapital Financing Activities 411,906 - 411,906 - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of Capital Assets (201,221) (2,332,639) (2,533,860) - Cash Paid for Debt Contributions (500,000) - (500,000) - Cash Proceeds Received on Sale of Capital Assets - 285,274 285,274 - Net Cash Used by Capital and Related Financing Activities (701,221) (2,047,365) (2,748,586) - CASH FLOWS FROM INVESTING ACTIVITIES Interest on Investments - - - 45,271 NET CHANGE IN CASH AND CASH EQUIVALENTS 146,511 (749,107) (602,596) 535,833 Cash and Cash Equivalents - Beginning of Year 2,331,260 8,531,489 10,862,749 13,409,508 CASH AND CASH EQUIVALENTS - END OF YEAR 2,477,771$ 7,782,382$ 10,260,153$ 13,945,341$ Business-Type Activities - Enterprise Funds Page 60 of 201 ST. CROIX COUNTY, WISCONSIN STATEMENT OF CASH FLOWS (CONTINUED) PROPRIETARY FUNDS YEAR ENDED DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (25) Internal Nursing Highway Service Home Department Total Funds RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating Income (Loss) (167,677)$ 487,043$ 319,366$ 1,018,377$ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by Operating Activities: Depreciation 705,726 2,230,635 2,936,361 - Net Change in WRS Pension Deferred Outflow 438,840 1,097,250 1,536,090 - Net Change in WRS Pension Liability 30,994 30,758 61,752 - Net Change in WRS Pension Deferred Inflow (416,003) (940,698) (1,356,701) - Net Change in Other Postemployment Benefits Deferred Outflows - (636) (636) - Net Change in Total Other Postemployment Benefits Liability - (5,941) (5,941) - Net Change in Other Postemployment Benefits Deferred Inflows - (89,540) (89,540) - (Increase) Decrease in Assets: Accounts Receivable (64,472) (5,707) (70,179) 31,544 Due from Other Governmental Units - (1,251,877) (1,251,877) - Prepaid Items and Other Assets - 313,431 313,431 - Increase (Decrease) in Liabilities: Accounts Payable (21,222) (527,939) (549,161) (191,565) Accrued Claims/Losses Payable - - - (367,794) Accrued Liabilities (104,661) (232,290) (336,951) - Accrued Employee Leave 37,373 (12,840) 24,533 - Security Deposits Payable (3,072) - (3,072) - Unearned Revenue - 206,609 206,609 - Net Cash Provided by Operating Activities 435,826$ 1,298,258$ 1,734,084$ 490,562$ RECONCILIATION OF CASH AND INVESTMENTS TO CASH AND CASH EQUIVALENTS Cash and Investments per Statement of Net Position: Cash and Investments 2,426,062$ 7,782,382$ 10,208,444$ 13,542,270$ Cash Held by Fiscal Agents - - - 403,071 Cash and Investments - Restricted 51,709 - 51,709 - Cash and Cash Equivalents 2,477,771$ 7,782,382$ 10,260,153$ 13,945,341$ NONCASH ITEMS Capital Contributions Received 289,016$ -$ 289,016$ -$ Business-Type Activities - Enterprise Funds Page 61 of 201 ST. CROIX COUNTY, WISCONSIN STATEMENT OF NET POSITION FIDUCIARY FUNDS DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (26) Custodial Funds ASSETS Treasurer's Cash and Investments 59,851,631$ Departmental Cash and Investments 2,077,558 Special Assessments Receivable 42,066 Total Assets 61,971,253 LIABILITIES Due to Other Governments 47,632,606 Due to Individuals 52,479 Accounts Payable 1,617,706 Total Liabilities 49,361,433 DEFERRED INFLOWS OF RESOURCES Succeeding Year's Property Taxes 11,202,186 NET POSITION Restricted for: Individuals, Organizations, and Other Governments 1,407,634$ Page 62 of 201 ST. CROIX COUNTY, WISCONSIN STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS YEAR ENDED DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (27) Custodial Funds ADDITIONS Contributions: Individuals 1,304,698$ Property Tax Collections for Other Governments 68,849,358 Fines and Forfeitures 3,320,048 License and Fees Collected for State 1,016,399 Total Additions 74,490,503 DEDUCTIONS Payments of Property Tax to Other Governments 70,146,182 Payments to Other Governments 3,205,137 Distribution to Participants 1,016,399 Total Deductions 74,367,718 NET INCREASE IN FIDUCIARY NET POSITION 122,785 Fiduciary Net Position - Beginning of Year 1,284,849 FIDUCIARY NET POSITION - END OF YEAR 1,407,634$ Page 63 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (28) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of St. Croix County, Wisconsin, Wisconsin, (the County) have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The significant accounting principles and policies utilized by the County are described below: A. Financial Reporting Entity The County is governed by a board of supervisors (the Board) consisting of nineteen elected members. The financial reporting of the County is defined by the GASB to consist of: (a) the primary government, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the nature and significance of their relationship with the primary government are such that the exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. The basic financial statements of the County consist solely of the primary government. No other organizations were identified for inclusion in the financial reporting entity of the County. B. Government-Wide and Fund Financial Statements The County’s basic financial statements include both government-wide (reporting the County as a whole) and fund financial statements (reporting the County’s major funds) as described below: Government-Wide Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report financial information on all of the nonfiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable to a specific function or segment. Program revenues include: (a) charges to customers or applicants who purchase, use or directly benefit from goods, services, or privileges provided by a given function or segment; and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Page 64 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (29) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Government-Wide and Fund Financial Statements (Continued) Fund Financial Statements Financial statements of the reporting entity are organized into funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts, which constitute its assets, deferred outflows of resources, liabilities, deferred inflows of resources, net position, fund equity, revenues, and expenditures/expenses. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The County reports the following major governmental funds: General Fund – The General Fund is the operating fund of the County. It is used to account for all financial resources of the County, except those required to be accounted for in another fund. Health and Human Services Fund – The Health and Human Services Fund, a special revenue fund, is used to account for the County’s health programs and human services programs. Through the human services programs, the County provides mental health, developmental disabilities and alcoholism and drug abuse rehabilitation services to residents of the County and administers the various social services and income maintenance programs provided by and through the County. These programs are funded primarily by intergovernmental revenues, and property taxes, committed through the Board approved levy. Debt Service Fund – The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costs of governmental funds, which are financed by property tax revenues restricted through bond documents. Capital Projects Fund – The capital projects fund is used to account for all ongoing projects for the County. All remaining governmental funds are aggregated and reported as nonmajor funds. The County reports the following major enterprise funds: Nursing Home Fund – This fund accounts for the operations of the County’s nursing home. This primary source of revenue is from the charges for the services provided. Page 65 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (30) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Government-Wide and Fund Financial Statements (Continued) Fund Financial Statements (Continued) Highway Department Fund – This fund is used to account for the County’s highway department operations, which provides services both to the County and to the state and other local districts. This fund is reported as an enterprise fund because the majority of its operating revenue is derived from charges to the state and local districts. The County had no other enterprise funds to report as nonmajor funds, but does report the following internal service funds:  Internal service funds are used to account for the County’s various self-funded health, workers’ compensation, and liability insurance programs and the retiree health savings account. The primary source of revenue is from the premiums paid. Additionally, the County reports the following fiduciary funds:  Custodial funds (fiduciary funds) are used to account for assets held by the County in a trustee capacity or as an agent for individuals, private organizations and/or other governmental units. C. Measurement Focus and Basis of Accounting The government-wide, proprietary fund, and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues, expenses, gains, losses, assets, deferred outflows of resources, liabilities, and deferred inflows of resources resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Nonexchange transactions, in which the County gives or receives value without directly receiving or giving equal value in exchange, include property taxes, grants, entitlements and donations. Property taxes are recognized as revenues in the year for which they are levied. Taxes receivable for the following year are recorded as receivables and deferred inflows of resources. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Page 66 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (31) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus and Basis of Accounting (Continued) Governmental fund statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized as soon as they are both measurable and available. Revenues are deemed to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the County generally considers revenues reported in the governmental funds to be available if they are collected within sixty days after the end of the current fiscal period. Client billings for the human services programs are recognized when received. State and federal aids under cost reimbursement programs are generally recognized when earned if expected to be collected in the subsequent year. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and acquisitions under capital leases are reported as other financing sources. Property taxes, miscellaneous taxes, cost reimbursement grant programs, public charges for services, and interest associated with the current fiscal period are all considered to be susceptible to accrual. All other revenue items are generally considered to be measurable and available only when cash is received by the government. The County reports deferred inflows of resources on its statement of net position and fund balance sheet. Deferred inflows of resources arise when potential revenue does not meet both the “measurable” and “available” criteria for recognition in the current period. Unearned revenues arise when resources are received by the County before it has a legal claim to them as when grant monies are received prior to the incurrence of qualifying expenditures. Page 67 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (32) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus and Basis of Accounting (Continued) In subsequent periods, when both revenue recognition criteria are met, or when the County has a legal claim to the resources, the deferred inflow of resources or the liability for unearned revenue is removed from the statement of net position and fund balance sheet and revenue is recognized. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments between governmental activities and business-type activities for services provided. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the nursing home are charges for resident services. The principal operating revenue of the highway fund are charges for construction and maintenance services. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation and amortization on capital assets. All revenues and expense not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the County’s policy to use restricted resources first, then unrestricted resources as they are needed. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in financial statements and accompanying notes. Actual results could differ from those estimates. D. Assets, Liabilities, Deferred Inflows/Outflows of Resources and Net Position of Equity 1. Cash and Investments The County’s cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from date of acquisition. Cash and investment balances for individual funds are pooled unless maintained in segregated accounts. Investment of County funds is restricted by state statutes. Available investments are limited to: a) Time deposits in any credit union, bank, savings bank, or trust company maturing in three years or less; b) Bonds or securities issued or guaranteed by the federal government; Page 68 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (33) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Inflows/Outflows of Resources and Net Position of Equity (Continued) 1. Cash and Investments (Continued) c) Bonds or securities of any county, city, drainage district, technical college district, village, town, or school district of the state. Also, bonds issued by a local exposition district, a local professional baseball park district, a local professional football stadium district, a local cultural arts district, or by the University of Wisconsin Hospitals and Clinics Authority; d) Any security maturing in seven years or less and having the highest or second highest rating category of a nationally recognized rating agency; e) Securities of an open-end management investment company or investment trust, subject to various conditions and investment options; f) Bonds or securities issued under the authority of the municipality; g) The local government investment pool; or h) Repurchase agreements with public depositories, with certain conditions. Additional restrictions may arise from local charters, ordinances, resolutions and grant resolutions. Investment of most trust funds is regulated by Chapter 881 of the Wisconsin Statutes. Those sections give broad authority to use such funds to acquire various kinds of investments including stocks, bonds and debentures. Investments of the County are stated at fair value and amortized cost depending on type. 2. Receivables and Payables Property Taxes Property taxes are levied prior to the end of the calendar year and are due and collectible in the following year. Property taxes attach an enforceable lien as of January 1. In addition to property taxes for the County, taxes are also collected for and remitted to the various other taxing jurisdictions. Taxes billed for the taxing jurisdictions are recorded as receivables and due other governmental units in the custodial fund statement of fiduciary net position. Since County property taxes are not considered earned until January 1 of the year following the levy, they are recorded as deferred inflows of resources in the funds budgeted therefore. Page 69 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (34) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Inflows/Outflows of Resources and Net Position of Equity (Continued) 2. Receivables and Payables (Continued) Property Taxes (Continued) The County is also responsible for the collection of all delinquent and postponed property taxes levied by the local taxing districts within its boundaries, except delinquent personal property taxes which are retained by the local municipal district. Real property taxes are payable in full to the local districts on or before January 31 or, alternatively, if over $100, can be paid in two equal installments with the first installment payable on or before January 31 and the second installment payable on or before July 31. Personal property taxes and special assessments, special charges (including delinquent utility billings) and special taxes placed on the tax roll are payable in full on or before January 31. All uncollected items on the current tax roll, except delinquent personal property taxes, are turned over to the St. Croix County Treasurer for collection in February. The County subsequently settles in full with the local districts in August of the same year, except for delinquent special assessments and other special charges. All uncollected taxes returned to the County for collection are financed through the general fund, except for delinquent special assessments of the districts. A portion of the general fund’s equity balance is nonspendable for the County’s investment in delinquent taxes. Accounts Receivable Client accounts receivable in the health and human services fund are offset by an allowance for doubtful accounts of approximately $783,660. Resident accounts receivable in the nursing home fund are offset by an allowance for doubtful accounts of $28,800. All other accounts receivable are considered to be collectible in full. Third-Party Reimbursement Agreements Medicaid The Nursing Home (the Home) participates in the Medicaid program that is administrated by the Wisconsin Department of Human Services (DHS). Revenues for provided services are recognized by the Home as services are provided. Rates for services provided to residents under the Title XIX Wisconsin Medical Assistance Program are based on cost reports submitted by the Home and a formula determined by the Wisconsin Department of Human Services. Average Title XIX rates cannot exceed private pay rates. Title XIX rates are subject to retroactive adjustment. Page 70 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (35) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Inflows/Outflows of Resources and Net Position of Equity (Continued) 2. Receivables and Payables (Continued) Third-Party Reimbursement Agreements (Continued) Medicaid (Continued) The State of Wisconsin Department of Human Services also provides additional reimbursement to county nursing facilities through the intergovernmental transfer program based on the shortfall between a facility’s Medicaid reimbursement and the cost of providing the related care. These additional settlement amounts are reflected as nonoperating gains. The amount of $387,205 was recognized during the year ended December 31, 2025. Medicare By state statue, a nursing home facility which participates in the Medicaid program must also participate in the Medicare program. This program is administered by the Centers for Medicare and Medicaid Services. The Home is paid under the Medicare prospective payment system (PPS) for residents who are Medicare eligible. The PPS is a per diem price-based system. Laws and regulations governing the Medicare and Medicaid programs are extremely complex and subject to interpretation. As a result, there is at least a reasonable possibility that recorded estimates will change by a material amount in the near term. Resident service revenues were $9,647,135. and there were no contractual adjustments in the current year. During the year ended December 31, 2025, the occupancy percentages and the percentages of residents covered under the Medicare and Medicaid programs were as follows: Total Occupancy 78.1 % Medicaid 23.0 Medicare 10.2 Page 71 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (36) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Inflows/Outflows of Resources and Net Position of Equity (Continued) 2. Receivables and Payables (Continued) Interfund Balances Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds”. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statement as “internal balances”. Advances between funds, as reported in the fund financial statements, are classified as nonspendable fund balance in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. 3. Other Assets and Prepaid Items Other assets of the County’s highway fund are reflected at average cost. These items are consumed in the operation of the highway fund including culverts, repair parts, and various medical supplies on hand. Other assets of governmental funds, if material, are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. 4. Restricted Assets Mandatory segregations of assets are presented as restricted assets. Such segregations may be required by bond agreements and other external parties. Current liabilities payable from these restricted assets are so classified. Page 72 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (37) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Inflows/Outflows of Resources and Net Position of Equity (Continued) 5. Capital Assets Government-Wide Statements Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the County as assets with initial, individual costs as shown below and an estimated useful life of one year or greater. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. In the case of the initial capitalization of general infrastructure reported in governmental activities, the County chose to include all such items regardless of their acquisition date or amount. The County was able to estimate the historical cost for the initial reporting of these assets through back-trending (estimating the current replacement costs of the infrastructure to be capitalized and using an appropriate price-level index to deflate the costs to the acquisition year or estimated acquisition year). The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Capitalization thresholds (the dollar valued above which asset acquisitions are added to the capital asset accounts), depreciation and amortization methods, and estimated useful lives of capital assets reported in the government-wide statements are as follows: Capitalization Depreciation Estimated Threshold Method Useful Life Land and Land Improvements 5,000$ Straight-Line 5 to 25 Years Buildings and Improvements 5,000 Straight-Line 25 to 40 Years Machinery and Equipment 5,000 Straight-Line 4 to 20 Years Right-to-Use Leased Equipment 5,000 Straight-Line 4 to 20 Years Infrastructure 5,000 Straight-Line 25 to 60 Years Fund Financial Statements In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for in the same manner as in the government-wide statements. Page 73 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (38) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Inflows/Outflows of Resources and Net Position of Equity (Continued) 6. Leases (Lessee) The County determines if an arrangement is a lease at inception. Leases are included in lease assets and lease liabilities in the statements of net position. Lease assets represent the County’s control of the right to use an underlying asset for the lease term, as specified in the contract, in an exchange or exchange-like transaction. Lease assets are recognized at the commencement date based on the initial measurement of the lease liability, plus any payments made to the lessor at or before the commencement of the lease term and certain direct costs. Lease assets are amortized in a systematic and rational manner over the shorter of the lease term or the useful life of the underlying asset. Lease liabilities represent the County’s obligation to make lease payments arising from the lease. Lease liabilities are recognized at the commencement date based on the present value of expected lease payments over the lease term, less any lease incentives. Interest expense is recognized ratably over the contract term. The lease term may include options to extend or terminate the lease when it is reasonably certain that the County will exercise that option. The County has elected to recognize payments for short-term leases with a lease term of 12 months or less as expenses as incurred, and these leases are not included as lease liabilities or right-to-use lease assets on the statements of net position. The individual lease contracts do not provide information about the discount rate implicit in the lease. Therefore, the County has elected to use their incremental borrowing rate to calculate the present value of expected lease payments. The County accounts for contracts containing both lease and non-lease components as separate contracts when possible. In cases where the contract does not provide separate price information for lease and non-lease components, and it is impractical to estimate the price of such components, the County treats the components as a single lease unit. Page 74 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (39) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Inflows/Outflows of Resources and Net Position of Equity (Continued) 7. Deferred Outflows of Resources The County would report decreases in net position or fund equity that relate to future periods as deferred outflows of resources in a separate section of its government- wide and proprietary funds statements of net position or governmental fund balance sheet. Deferred outflows of resources are reported in these financial statements for Wisconsin Retirement System pension items and other postemployment benefit items. 8. Deferred Inflows of Resources The County’s governmental activities, business-type activities, governmental and enterprise fund financial statements report a separate section for deferred inflows of resources. This separate financial statement element reflects an increase in net position or fund equity that applies to a future period. The County will not recognize the related revenue until a future event occurs. The County has two types of items which occur related to revenue recognition. The first occurs because property tax receivables are recorded in the current year, but the revenue will be recorded in the subsequent year. The second type of deferred inflow of resources occurs because governmental fund revenues are not recognized until available (collected not later than 60 days after the end of the County’s year) under the modified accrual basis of accounting. The County also reports deferred inflows of resources for pension and other postemployment benefit items. 9. Compensated Absences The liability for compensated absences reported in the government-wide and proprietary fund statements consists of leave that has not been used that is attributable to services already rendered, accumulates and is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. The liability also includes amounts for leave that has been used for time off but has not yet been paid in cash or settled through noncash means and certain other types of leave. Page 75 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (40) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Inflows/Outflows of Resources and Net Position of Equity (Continued) 10. Wisconsin Retirement System Pension Plan Benefits For purposes of measuring the net pension asset, liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Wisconsin Retirement System (WRS) and additions to/deductions from WRS’ fiduciary net position have been determined on the same basis as they are reported by WRS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 11. Long-Term Obligations In the government-wide financial statements and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities or proprietary fund type statement of net position. In the governmental fund financial statements, the face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 12. Equity Classifications Fund equity, representing the difference between assets, liabilities and deferred inflows/outflows, is classified as follows in the County’s financial statements: Government-Wide and Proprietary Fund Statements Fund equity is classified as net position in the government-wide and proprietary fund financial statements and is displayed in three components. Net investment in capital assets consists of capital assets, net of accumulated depreciation and amortization, reduced by the outstanding balances of any borrowing used for the acquisition, construction or improvement for those assets. Net position is reported as restricted when there are limitations imposed on its use through external restrictions imposed by creditors, grantors or laws or regulations of other governments. All other net position is displayed as unrestricted. When both restricted and unrestricted net position are available for use, it is the County’s policy to use restricted resources first and unrestricted resources next to the extent they are needed. Page 76 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (41) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Inflows/Outflows of Resources and Net Position of Equity (Continued) 12. Equity Classifications (Continued) Fund Financial Statements In the fund financial statements, governmental funds report components of fund balance to provide information about fund balance availability for appropriation. Nonspendable fund balance represents amounts that are inherently nonspendable or assets that are legally or contractually required to be maintained intact. Restricted fund balance represents amounts available for appropriation but intended for a specific use and is legally restricted by outside parties. Committed fund balance represents constraints on spending that the government imposes upon itself by high- level formal action prior to the close of the fiscal period. Assigned fund balance represents resources intended for spending for a purpose set by the government body itself or by some person or body delegated to exercise such authority in accordance with policy established by the board. Unassigned fund balance is the residual classification for the County’s general fund and includes all spendable amounts not contained in the other classifications. It is the County’s policy that at the end of each fiscal year, the County will maintain unassigned portions of the fund balance at a minimum of 35% of the general fund operating expenditures. Committed fund balance is required to be established, modified, or rescinded by resolution of the County Board prior to each year-end. Based on resolution of the County Board, the County Administrator has the authority to establish or modify assigned fund balance. When restricted and unrestricted fund balance is available for expenditure, it is the County’s practice to first use restricted fund balance. When committed, assigned, and unassigned fund balance is available for expenditure, it is the County’s practice to use committed, assigned and finally unassigned fund balance. Page 77 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (42) NOTE 2 RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS Due to the differences in the measurement focus and basis of accounting used in the governmental fund financial statements and t he government-wide financial statements, certain financial transactions are treated differently. Reconciliations of the fund equity and changes thereto in the fund financial statements to the net position and revenues/expenses shown in the government-wide financial statements are presented as referenced in the table of contents for the governmental funds and for the enterprise funds. NOTE 3 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY GAAP require the disclosure of individual funds that have defic it balances at year-end. At December 31, 2025, there were no deficit fund balances reported. NOTE 4 DETAILED NOTES ON ALL FUNDS A. Deposits and Investments The County’s cash and investments balances at December 31, 2025, are shown in the financial statements as follows: Governmental Activities 69,953,295 $ Business-Type Activities 10,260,153 Fiduciary Activity 61,929,189 Total 142,142,637 $ Page 78 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (43) NOTE 4 DETAILED NOTES ON ALL FUNDS (CONTINUED) A. Deposits and Investments (Continued) The above cash and investments balances consisted of the following: Treasurer's Cash and Investments: Deposits at Financial Institutions 53,050,140$ Deposits in State Local Government: Pooled-Investment Fund 16,767,919 Money Market Savings Account 3,621,423 Certificates of Deposit 2,956,834 Municipal Bonds 29,305,992 Investments in Federal Obligations 33,904,644 Total Treasurer's Cash and Investments 139,606,952 Departmental Cash and Investments: Deposits in Financial Institutions 2,077,558 Petty Cash 3,347 Total Departmental Cash and Investments 2,080,905 Cash and Investments Held by Fiscal Agents: Deposits with WMMIC 403,071 Restricted Cash and Investments: Deposits in Financial Institutions: County Funds 51,709 Total Cash and Investments at December 31, 2025 142,142,637$ Page 79 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (44) NOTE 4 DETAILED NOTES ON ALL FUNDS (CONTINUED) A. Deposits and Investments (Continued) Deposits at Financial Institutions The County’s balances at individual financial institutions were subject to coverage under federal depository insurance and amounts appropriated by Sections 20.144(1)(a) and 34.08 of the Wisconsin Statutes (State Guarantee Fund). Federal depository insurance provides for coverage of up to $250,000 for time and savings deposits and up to $250,000 for demand deposits at any institution. In addition, funds held for individuals are subject to coverage in the name of the beneficiary in whose name the trust fund is held. Coverage under the State Guarantee Fund may not exceed $1,000,000 above the amount of coverage under federal depository insurance at any institution and is limited by the availability of the appropriations authorized therein. (Due to the relatively small size of the State Guarantee Fund in relation to the total coverage, total recovery of losses may not be available.) Also, Section 34.07 of the Wisconsin Statutes authorizes the County to collateralize its deposits that exceed the amount of coverage provided by federal depository insurance and the State Guarantee Fund. Custodial credit risk for deposits is the risk that in the event of bank failure, the County’s deposits may not be returned. At December 31, 2025, all of the County’s deposits were insured or collateralized. Investments The County’s investments at December 31, 2025, consisted of deposits in the state of Wisconsin Local Government Investment Pool (an external investment pool), U.S. government agencies and instrumentalities, obligations, and a money market fund associated with its investments in federal securities. State Local Government Pooled-Investment Fund The state of Wisconsin offers a Local Government Investment Pool (LGIP) to local government units to enable them to voluntarily invest idle funds in the State Investment Fund. Local funds are pooled with state funds and invested by the State Investment Board. There is no minimum or maximum amount that can be invested by a local governmental unit. Interest is earned on a daily basis and withdrawals are generally available on the day of request. Deposits in the LGIP are not covered by federal depository insurance but are subject to coverage under the State Guarantee Fund. Also, the State of Wisconsin Investment Board has obtained a surety bond to protect deposits in the LGIP against defaults in principal payments on the LGIP’s investments (subject to certain limitations). The average monthly weighted average maturity of the State Investment Fund’s investments for 2025 was 19 days. LGIP is not registered with the SEC and the regulatory authority of the LGIP. The County’s investment in LGIP is valued at amortized cost. Page 80 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (45) NOTE 4 DETAILED NOTES ON ALL FUNDS (CONTINUED) A. Deposits and Investments (Continued) Investments (Continued) Certificates of Deposit and U.S. Government Agencies and Instrumentalities Obligations The County’s investments in these obligations at December 31, 2025, are as follows: Less than More than Description 1 Year 1 to 2 Years 2 to 3 Years 3 Years Total Debt Instruments: U.S. Treasury Securities 13,785,761$ -$ -$ -$ 13,785,761$ Certificate of Deposit 1,025,069 1,687,755 - 244,010 2,956,834 U.S. Government Bonds - Ag - - 3,225,706 - 3,225,706 U.S. Government Bonds - FHLB 14,546,437 982,190 1,364,550 - 16,893,177 Municipal Bonds 598,886 7,471,607 5,330,284 15,905,215 29,305,992 Total 29,956,153$ 10,141,552$ 9,920,540$ 16,149,225$ 66,167,470$ Investment Maturities Generally, the above obligations are subject to call prior to the stated maturity date. It is the County’s general policy to hold the obligations until maturity or call. The listed obligations are guaranteed by the issuing agency/instrumentality. Credit risk for investments is the risk that an issuer or other counterparty to an investment will not fulfill its obligation to the holder of the investment. The County’s policy is to invest its funds in accordance with provisions of the Wisconsin Statutes previously discussed in Note 1.D.1. As of December 31, 2025, the County’s investments were rated as follows: Credit Type Quality Rating Amount U.S. Treasuries AA+ 13,785,761$ U.S. Government Bonds - Ag AA+ 3,225,706 U.S. Government Bonds - FHLB AA+ 16,893,177 Municipal Bonds AA+ 29,305,992 Certificates of Deposit Not Rated 2,956,834 Money Market Funds Not Rated 3,621,423 LGIP Not Rated 16,767,919 Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. Generally, the fair values of investments with maturity dates further into the future are more sensitive to changes in market interest rates. The short weighted average maturity of the investments in the LGIP mitigates this risk to the County. Also, it is the County’s policy to invest in securities that mature in seven years or less. Page 81 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (46) NOTE 4 DETAILED NOTES ON ALL FUNDS (CONTINUED) A. Deposits and Investments (Continued) Investments (Continued) Concentration of credit risk is the risk of loss attributed to the magnitude of a government’s investments in a single issuer. At December 31, 2025, the investment portfolio was concentrated as follows (investment holdings individually greater than 5% of the total investment portfolio): Type Amount Percentage U.S. Treasury Securities 13,785,761$ 20.8 Certificate of Deposit 2,956,834 4.5 U.S. Government Bonds - Ag 3,225,706 4.9 U.S. Government Bonds - FHLB 16,893,177 25.5 Municipal Bonds 29,305,992 44.3 Total 66,167,470$ The County uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The County follows an accounting standard that defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and requires expanded disclosures about fair value measurements. In accordance with this standard, the County has categorized its investments, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities recorded on the combined statements of financial position are categorized based on the inputs to the valuation techniques as follows: Level 1 – Financial assets and liabilities are valued using inputs that are unadjusted quoted prices in active markets accessible at the measurement date of identical financial assets and liabilities. Level 2 – Financial assets and liabilities are valued based on quoted prices for similar assets, or inputs that are observable, either directly or indirectly for substantially the full term through corroboration with observable market data. Level 3 – Financial assets and liabilities are valued using pricing inputs which are unobservable for the asset, inputs that reflect the reporting entity’s own assumptions about the assumptions market participants and would use in pricing the asset. Page 82 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (47) NOTE 4 DETAILED NOTES ON ALL FUNDS (CONTINUED) A. Deposits and Investments (Continued) Investments (Continued) Assets of the County measured at fair value on a recurring basis: Description Level 1 Level 2 Level 3 Total U.S. Treasury Securities 13,785,761$ -$ -$ 13,785,761$ U.S. Bonds - FHLB 16,893,177 - - 16,893,177 U.S. Bonds - Ag 3,225,706 - - 3,225,706 Municipal Bonds 29,305,992 - - 29,305,992 Certificate of Deposit - 2,956,834 - 2,956,834 Subtotal 63,210,636$ 2,956,834$ -$ 66,167,470 Investments Measured at Amortized Cost - LGIP Funds 16,767,919 Total Investments 82,935,389$ B. Receivables/Deferred Inflows of Resources 1. Taxes Receivable Taxes receivable at December 31, 2025, are as detailed below: Governmental Enterprise Custodial Funds Funds Funds Total Current Taxes Receivable: 2025 Apportionment: County Taxes 47,176,864$ -$ -$ 47,176,864$ Delinquent Taxes Receivable: Tax Certificates: 2025 Sale (2024 Taxes) 730,948 - - 730,948 2024 Sale 258,565 - - 258,565 2023 Sale 92,173 - - 92,173 2022 Sale and Prior Years 17,539 - - 17,539 Special Assessments and Charges - - 41,636 41,636 Total Delinquent Taxes Receivable 1,099,225 - 41,636 1,140,861 Tax Deeds Owned by County 20,556 - - 20,556 Total Taxes Receivable 48,296,645$ -$ 41,636$ 48,338,281$ Delinquent taxes receivable in the custodial fund consist of delinquent special assessments and other charges due local taxing districts. These amounts are remitted to the districts when collected by the County. Page 83 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (48) NOTE 4 DETAILED NOTES ON ALL FUNDS (CONTINUED) B. Receivables/Deferred Inflows of Resources (Continued) 2. Resident Receivables Resident receivables reported as current assets by the Home at December 31, 2025, consisted of the following: Receivable from Residents and their Insurance Carriers 86,828$ Receivable from Medicare 81,076 Receivable from Medicaid 519,713 Total Resident Receivables 687,617 Less: Allowance for Doubtful Accounts (28,800) Resident Receivables, Net 658,817$ 3. Lease Receivables The County acting as lessor, leases real property under long-term, non-cancelable lease agreements. The leases expire at various dates through 2035 if all renewal options are exercised. During the year ended December 31, 2025, the County recognized $150,633 and $64,903 in lease revenue and interest revenue, respectively, pursuant to these contracts. Total future minimum lease payments to be received under the lease agreements are as follows: Year Ending December 31, Principal Interest Total 2026 180,351$ 105,651$ 286,002$ 2027 195,435 94,764 290,199 2028 211,536 82,965 294,501 2029 228,720 70,191 298,911 2030 165,585 58,591 224,176 2031 - 2035 907,455 127,297 1,034,752 Total Minimum Lease Payments 1,889,082$ 539,459$ 2,428,541$ Governmental Activities Page 84 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (49) NOTE 4 DETAILED NOTES ON ALL FUNDS (CONTINUED) B. Receivables/Deferred Inflows of Resources (Continued) 4. Other Receivables Other accounts receivable at December 31, 2025, are further detailed as follows: Health Other and Human Capital Governmental Nursing Highway General Fund Services Fund Projects Fund Funds Home Department Total Accounts Receivable: General 2,133,213$ 2,036,281$ 169,468$ 12,376$ 24,336$ 135,820$ 4,511,494$ Long-Term Receivables 277 - - - - - 277 Customers/Residents: Nursing Home - - - - 751,517 - 751,517 Allowance for Doubtful Accounts - (783,660) - - (92,700) - (876,360) Total Accounts Receivable 2,133,490 1,252,621 169,468 12,376 683,153 135,820 4,386,928 Due from Other Governments 2,328,764 1,547,013 - 20,992 - 1,843,464 5,740,233 Total 4,462,254$ 2,799,634$ 169,468$ 33,368$ 683,153$ 1,979,284$ 10,127,161$ 5. Deferred Inflows of Resources/Unearned Revenues Governmental funds report unavailable revenues in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Property taxes receivable for the subsequent year are not earned and cannot be used to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred inflows of resources and unearned revenue reported in the governmental funds were as follows: Unavailable Unearned Total Governmental Funds: 2025 Tax Levy 47,179,900$ -$ 47,179,900$ General Fund Grant Advances - 309,370 309,370 Health and Human Services Receivables 1,252,621 18,647 1,271,268 Leases - 1,851,536 1,851,536 Total Governmental Activities 48,432,521$ 2,179,553$ 50,612,074$ Page 85 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (50) NOTE 4 DETAILED NOTES ON ALL FUNDS (CONTINUED) C. Capital Assets Capital asset activity for the year ended December 31, 2025, was as follows: Governmental Activities Beginning Transfers and Ending Balance Increases Decreases Balance Capital Assets Not being Depreciated/Amortized: Land 5,841,394$ -$ -$ 5,841,394$ Construction Work-in-Progress 8,058,012 26,995,021 18,116,852 16,936,181 Total Capital Assets Not being Depreciated/Amortized 13,899,406 26,995,021 18,116,852 22,777,575 Capital Assets being Depreciated/Amortized: Land Improvements 5,096,520 50,000 233,613 4,912,907 Buildings and Improvements 106,029,421 14,344,622 - 120,374,043 Equipment and Vehicles 25,851,168 2,266,852 1,409,340 26,708,680 Highway Infrastructure 159,139,917 3,162,654 - 162,302,571 Other Infrastructure 2,057,372 - - 2,057,372 Right-to-Use Lease Equipment 10,196 308,300 10,196 308,300 Right-to-Use Lease Vehicles 667,514 247,597 193,122 721,989 Total Capital Assets being Depreciated/Amortized 298,852,108 20,380,025 1,846,271 317,385,862 Total Capital Assets 312,751,514 47,375,046 19,963,123 340,163,437 Accumulated Depreciation/Amortization: Land Improvements 2,426,234 175,253 23,993 2,577,494 Buildings and Improvements 24,334,198 4,779,066 - 29,113,264 Equipment and Vehicles 13,849,724 2,949,240 840,962 15,958,002 Highway Infrastructure 81,128,146 4,302,452 - 85,430,598 Other Infrastructure 1,342,923 39,447 - 1,382,370 Right-to-Use Lease Equipment 8,739 56,012 10,196 54,555 Right-to-Use Lease Vehicles 309,936 192,323 193,122 309,137 Total Accumulated Depreciation/ Amortization 123,399,900 12,493,793 1,068,273 134,825,420 Net Capital Assets - Governmental Activities 189,351,614$ 34,881,253$ 18,894,850$ 205,338,017$ Depreciation and amortization was charged to governmental functions as follows: General Government 5,817,551$ Public Safety 1,578,322 Transportation 4,302,452 Health and Human Services 374,314 Culture, Recreation, and Education 421,154 Total 12,493,793$ Page 86 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (51) NOTE 4 DETAILED NOTES ON ALL FUNDS (CONTINUED) C. Capital Assets (Continued) Business-Type Activities Beginning Transfers and Ending Balance Increases Decreases Balance Nursing Home: Capital Assets being Depreciated: Land Improvements 50,874$ -$ -$ 50,874$ Buildings 21,279,681 171,699 - 21,451,380 Equipment 1,353,173 318,538 - 1,671,711 Total Capital Assets being Depreciated 22,683,728 490,237 - 23,173,965 Accumulated Depreciation: Land Improvements 28,967 2,544 - 31,511 Buildings 4,311,056 567,100 - 4,878,156 Equipment 1,176,338 136,082 - 1,312,420 Total Accumulated Depreciation 5,516,361 705,726 - 6,222,087 Net Capital Assets - Nursing Home 17,167,367 (215,489) - 16,951,878 Highway Department: Capital Assets Not being Depreciated: Land 1,191,092 - - 1,191,092 Gravel Pits and Quarries 248,612 - 46,182 202,430 Construction Work-in-Progress 1,401,256 1,142,887 1,401,256 1,142,887 Total Capital Assets Not being Depreciated 2,840,960 1,142,887 1,447,438 2,536,409 Capital Assets being Depreciated: Land Improvements 2,095,001 - - 2,095,001 Buildings and Improvements 27,643,177 38,351 - 27,681,528 Machinery and Equipment 23,022,613 2,642,880 945,964 24,719,529 Total Capital Assets being Depreciated 52,760,791 2,681,231 945,964 54,496,058 Total Capital Assets 55,601,751 3,824,118 2,393,402 57,032,467 Accumulated Depreciation: Land Improvements 784,355 80,856 - 865,211 Buildings and Improvements 5,173,212 742,808 - 5,916,020 Machinery and Equipment 13,705,920 1,406,971 616,649 14,496,242 Total Accumulated Depreciation 19,663,487 2,230,635 616,649 21,277,473 Net Capital Assets - Highway Department 35,938,264 1,593,483 1,776,753 35,754,994 Total Capital Assets 78,285,479 4,314,355 2,393,402 80,206,432 Less: Accumulated Depreciation 25,179,848 2,936,361 616,649 27,499,560 Net Capital Assets - Business-Type Activities 53,105,631$ 1,377,994$ 1,776,753$ 52,706,872$ Depreciation was charged to the following business-type activities: Nursing Home 705,726$ Highway Department 2,230,635 Total 2,936,361$ Page 87 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (52) NOTE 4 DETAILED NOTES ON ALL FUNDS (CONTINUED) D. Interfund Receivable, Payables, and Transfers The composition of interfund balances as of December 31, 2025, was as follows: Due to/from Other Funds There were no interfund balances as of December 31, 2025. Interfund balances owed within the governmental activities are eliminated in the statement of net position. Interfund Transfers Fund Transferred To Fund Transferred From Amount Purpose Debt Service Fund General Fund 500,000$ Debt Service Debt Service Fund Nursing Home 500,000 Debt Service Capital Projects Fund General Fund 3,500,000 Project Financing Total 4,500,000$ E. Long-Term Obligations Changes in Long-Term Obligations Changes in long-term obligations of the County for the year ended December 31, 2025, were as follows: Balance - Balance - Amounts January 1, December 31, Due Within 2025 Additions Reductions 2025 One Year Long-Term Debt: Governmental Activities: General Obligation Bonds, Dated September 1, 2015, from Direct Placements 6,425,000$ -$ 500,000$ 5,925,000$ 515,000$ General Obligation Bonds, Dated April 19, 2022, from Direct Placements 72,160,000 - 3,845,000 68,315,000 4,045,000 General Obligation Bonds, Dated March 2, 2016, from Direct Placements 9,055,000 - 715,000 8,340,000 735,000 General Obligation Bonds, Dated February 14, 2018, from Direct Placements 21,095,000 - 1,215,000 19,880,000 1,260,000 General Obligation Bonds, Dated December 4, 2019, from Direct Placements 4,935,000 - 385,000 4,550,000 365,000 General Obligation Notes, Dated July 2, 2025, from Direct Borrowing - 7,500,000 - 7,500,000 100,000 General Obligation Notes, Dated March 11, 2020, from Direct Borrowing 841,000 - 417,000 424,000 424,000 Net Bond Premium 3,390,191 - 428,180 2,962,011 - Total Long-Term Debt 117,901,191$ 7,500,000$ 7,505,180$ 117,896,011$ 7,444,000$ Other Long-Term Obligations: Governmental Activities: Employee Leave Liability 5,455,633$ 173,428$ 5,629,061 3,054,777$ Lease Liability 333,300 555,897 225,689 663,508 225,200 Total Governmental Activities 5,788,933 729,325 225,689 6,292,569 3,279,977 Business-Type Activities: Employee Leave Liability 1,528,632 24,533 - 1,553,165 732,087 Total Other Long-Term Obligations 7,650,865$ 1,309,755$ 451,378$ 8,509,242$ 4,237,264$ The County’s other postemployment benefits is discussed in Note 6. For the governmental activities, net pension liabilities and other postemployment benefits are generally liquidated by the general fund. The change in compensated absence liability is presented as a net change. Page 88 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (53) NOTE 4 DETAILED NOTES ON ALL FUNDS (CONTINUED) E. Long-Term Obligations (Continued) Changes in Long-Term Obligations (Continued) Security and Default The outstanding long-term debt obligations of the County contain the following provisions: All general obligation bonds, notes and other long-term obligations are backed by the full faith and credit of the County. General obligation long-term debt will be retired by future tax levies accumulated by the debt service fund. The County’s outstanding notes from direct borrowings related to governmental activities of $114,934,000 contain provisions that in the event of default, outstanding amounts become immediately due if the County is unable to make payment. Page 89 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (54) NOTE 4 DETAILED NOTES ON ALL FUNDS (CONTINUED) E. Long-Term Obligations (Continued) Changes in Long-Term Obligations (Continued) Annual Requirements for Retirement. Long-term general obligation debt issues outstanding at December 31, 2025, and annual requirements for their retirement were as follows: Year Principal Interest Total General Obligation Bonds: Corporate Purpose Bonds, Series 2015A, 2026 515,000$ 168,493$ 678,493$ $10,000,000, Issued September 1, 2015, 2027 530,000 155,430 681,180 Due April 1, 2035, Interest at 2.00% to 3.20% 2028 545,000 141,311 683,493 (Nursing and Dementia Crisis Facility Project) 2029 565,000 126,049 685,430 2030 580,000 109,580 689,580 2031-2035 3,190,000 261,160 3,451,160 Total 5,925,000 962,023 6,869,336 Corporate Purpose Bonds, Series 2016A, 2026 735,000 182,795 358,770 $10,000,000, Issued March 2, 2016, 2027 755,000 167,895 915,870 Due April 1, 2035, Interest at 2.7% to 3.00% 2028 775,000 152,595 917,795 2029 800,000 136,845 922,895 2030 820,000 120,030 940,030 2031-2035 4,455,000 294,298 4,749,298 Total 8,340,000 1,054,458 8,804,658 Highway Maintenance Facility Bonds, Series 2018A, 2026 1,260,000 607,620 1,867,620 $27,000,000, Issued February 14, 2018, 2027 1,295,000 559,285 1,854,285 Due March 1, 2038, Interest at 2.5% to 5.00% 2028 1,335,000 524,428 1,859,428 2029 1,375,000 486,468 1,861,468 2030 1,420,000 445,230 1,865,230 2031-2035 7,820,000 1,527,236 9,347,236 2036-2039 5,375,000 269,211 5,644,211 Total 19,880,000 4,419,478 24,299,478 General Obligation Capital Improvement Bonds, Series 2019A, 2026 365,000 106,638 471,638 $8,025,000, Issued December 4, 2019, 2027 375,000 95,538 470,538 Due April 1, 2039, Interest at 2.45% to 3.00% 2028 375,000 84,288 459,288 2029 305,000 78,662 383,662 2030 290,000 66,613 356,613 2031-2035 1,430,000 244,474 1,674,474 2036-2039 1,410,000 63,718 1,473,718 Total 4,550,000 739,931 5,289,931 General Obligation Promissory Bonds, Series 2022A 2026 4,045,000 2,341,131 6,386,131 $80,000,000, Issued April 19 ,2022 2027 4,020,000 2,179,831 6,199,831 Due March 1, 2042, Interest at 3.0% to 5.0% 2028 4,145,000 2,016,531 6,161,531 2029 3,865,000 1,856,331 5,721,331 2030 4,000,000 1,679,031 5,679,031 2031-2035 18,795,000 18,795,000 37,590,000 2036-2040 20,695,000 20,695,000 41,390,000 2041-2043 8,750,000 8,750,000 17,500,000 Total 68,315,000 58,312,855 126,627,855 General Obligation Promissory Notes, Series 2020A, 2026 $2,444,000, June 12, 2006, Final Installment Due April 1, 2026, Interest 1.00% to 2.25% 424,000 3,413 427,183 Total 424,000 3,413 427,183 General Obligation Promissory Bonds, Series 2025A 2026 100,000 175,049 275,049 $7,500,000, Issued July 2, 2025 2027 350,000 193,638 543,638 Due June 1, 2045, Interest at 3.0% to 5.0% 2028 300,000 166,938 466,938 2029 300,000 145,563 445,563 2030 300,000 129,363 429,363 2031-2035 2,500,000 478,438 2,978,438 2036-2040 2,150,000 274,531 2,424,531 2041-2045 1,500,000 100,273 1,600,273 Total 7,500,000 1,663,793 9,163,793 Total General Obligation Debt 114,934,000$ 67,155,951$ 181,482,234$ Page 90 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (55) NOTE 4 DETAILED NOTES ON ALL FUNDS (CONTINUED) E. Long-Term Obligations (Continued) General Obligation Long-Term Debt General Obligation Debt Limitation Section 67.03 of the Wisconsin Statutes restricts County general obligation debt to 5% of the equalized value of all property in the County. At December 31, 2025, the County’s debt limit amounted to $934,062,630 and indebtedness subject to the limitation totaled $114,934,000. F. Lease Liability The County leases equipment and vehicles for various terms under long-term, non- cancelable lease agreements. The leases expire at various dates through 2030. The liabilities were calculated using the County incremental borrowing rate of 2.62%. Some leases require variable payments based on future performance of the lessee or usage of the underlying asset and are not included in the measurement of the lease liability. Those variable payments are recognized as outflows of resources in the periods in which the obligation for those payments is incurred. During the year ended December 31, 2025, the Entity made variable payments as required by lease agreements totaling $250,264. Total future minimum lease payments under lease agreements are as follows: Year Ended December 31, Principal Interest 2026 225,200$ 19,535$ 2027 181,970 12,542 2028 163,419 6,197 2029 90,339 912 2030 2,580 36 Total 663,508$ 39,222$ Governmental Activities Page 91 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (56) NOTE 5 OTHER INFORMATION A. Wisconsin Retirement System Pension Plan Benefits General Information about the Pension Plan Plan Description The WRS is a cost-sharing, multiple-employer defined benefit pension plan. WRS benefits and other plan provisions are established by Chapter 40 of the Wisconsin Statutes. Benefit terms may only be modified by the legislature. The retirement system is administered by the Wisconsin Department of Employee Trust Funds (ETF). The system provides coverage to all eligible state of Wisconsin, local government and other public employees. All employees, initially employed by a participating WRS employer on or after July 1, 2011, and expected to work at least 1,200 hours a year and expected to be employed for at least one year from employee’s date of hire are eligible to participate in the WRS. ETF issues a standalone Annual Comprehensive Financial Report, which can be found at https://etf.wi.gov/about-etf/reports-and-studies/financial-reports-and- statements. Additionally, ETF issued a standalone Wisconsin Retirement System Financial Report, which can also be found using the link above. Vesting For employees beginning participation on or after January 1, 1990, and no longer actively employed on or after April 24, 1998, creditable service in each of five years is required for eligibility for a retirement annuity. Participants employed prior to 1990 and on or after April 24, 1998, and prior to July 1, 2011, are immediately vested. Participants who initially became WRS eligible on or after July 1, 2011, must have five years of creditable service to be vested. Benefits Provided Employees who retire at or after age 65 (54 for protective occupations and 62 for elected officials and executive service retirement plan participants, if hired on or before December 31, 2016) are entitled to a retirement benefit based on a formula factor, their final average earnings, and creditable service. Page 92 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (57) NOTE 5 OTHER INFORMATION (CONTINUED) A. Wisconsin Retirement System Pension Plan Benefits (Continued) General Information about the Pension Plan (Continued) Benefits Provided (Continued) Final average earnings is the average of the participant’s three highest annual earnings periods. Creditable service includes current service and prior service for which a participant received earnings and made contributions as required. Creditable service also includes creditable military service. The retirement benefit will be calculated as a money purchase benefit based on the employee’s contributions plus matching employer’s contributions, with interest, if that benefit is higher than the formula benefit. Vested participants may retire at or after age 55 (50 for protective occupations) and receive an actuarially-reduced benefit. Participants terminating covered employment prior to eligibility for an annuity may either receive employee-required contributions plus interest as a separation benefit or leave contributions on deposit and defer application until eligible to receive a retirement benefit. The WRS also provides death and disability benefits for employees. Contributions Required contributions are determined by an annual actuarial valuation in accordance with Chapter 40 of the Wisconsin Statutes. The employee required contribution is one-half of the actuarially determined contribution rate for general category employees, including teachers, and Executives and Elected Officials. Starting on January 1, 2016, the Executives and Elected Officials category was merged into the General Employee Category. Required contributions for protective employees are the same rate as general employees. Employers are required to contribute the remainder of the actuarially determined contribution rate. The employer may not pay the employee required contribution unless provided for by an existing collective bargaining agreement. During the reporting period ending December 31, 2025, the WRS recognized $3,637,534 in contributions from the employer. Contribution rates as of December 31, 2025 are: Employee Employer 6.95 % 6.95 % 6.95 6.95 6.95 15.01 6.95 19.01 General (including Teachers) Executives and Elected Officials Protective With Social Security Protective Without Social Security Page 93 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (58) NOTE 5 OTHER INFORMATION (CONTINUED) A. Wisconsin Retirement System Pension Plan Benefits (Continued) General Information about the Pension Plan (Continued) Postretirement Adjustments The Employee Trust Funds Board may periodically adjust annuity payments from the retirement system based on annual investment performance in accordance with s. 40.27, Wis. Stat. An increase (or decrease) in annuity payments may result when investment gains (losses), together with other actuarial experience factors, create a surplus (shortfall) in the reserves, as determined by the system’s consulting actuary. Annuity increases are not based on cost of living or other similar factors. For Core annuities, decreases may be applied only to previously granted increases. By law, Core annuities cannot be reduced to an amount below the original, guaranteed amount (the floor) set at retirement. The Core and Variable annuity adjustments granted during recent years are as follows: Core Fund Variable Fund Adjustment Adjustment 2.9 2.0 0.5 (5.0) 2.0 4.0 2.4 17.0 - (10.0) 1.7 21.0 5.1 13.0 7.4 15.0 1.6 (21.0) 3.6 15.0 2021 2022 2023 2024 Year 2015 2016 2017 2018 2019 2020 Pension Assets, Liabilities, Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At December 31, 2025, the County reported a liability of $3,769,510 for its proportionate share of the net pension liability. The net pension liability was measured as of December 31, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2023 rolled forward to December 31, 2024. The County’s proportion of the net pension liability was based on the County’s long-term share of contributions to the pension plan relative to the contributions of all participating employers. At December 31, 2024, the County’s proportion was 0.22940537%, which was an increase of 0.00135175% from its proportion measured as of December 31, 2023. Page 94 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (59) NOTE 5 OTHER INFORMATION (CONTINUED) A. Wisconsin Retirement System Pension Plan Benefits (Continued) Pension Assets, Liabilities, Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) For the year ended December 31, 2025, the County recognized pension expense (revenue) of $5,075,411. At December 31, 2025, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Description Resources Resources Difference between Expected and Actual Experience 11,706,391$ 11,000,336$ Changes of Assumptions 1,118,487 - Net Difference between Projected and Actual Earnings on Pension Plan Investments 5,727,969 - Changes in Proportion and Differences between County Contributions and Proportionate Share of Contributions 22,196 9,731 County Contributions Subsequent to the Measurement Date 3,746,565 - Total 22,321,608$ 11,010,067$ The $3,74565 reported as deferred outflows of resources related to pensions resulting from County contributions subsequent to the measurement date will be recognized as a reduction to the net pension liability in the year ended December 31, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense (revenue) as follows: Pension Expense Year Ending December 31, (Revenue) 2025 2,272,577$ 2026 7,820,637 2027 (1,928,079) 2028 (600,159) Page 95 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (60) NOTE 5 OTHER INFORMATION (CONTINUED) A. Wisconsin Retirement System Pension Plan Benefits (Continued) Pension Assets, Liabilities, Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) Actuarial Assumptions The total pension liability in the actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Actuarial Valuation Date: Measurement Date of Net Pension Liability (Asset): Actuarial Cost Method: Asset Valuation Method: Long-Term Expected Rate of Return: Discount Rate: Inflation: Seniority/Merit: Mortality: Postretirement Adjustments* * postretirement discount rate. Includes the impact of known Market Recognition Account deferred gains/losses on the liability for dividend payments. 6.8% 3.0% recognized investment return, actuarial experience, and other factors. 1.7% is the assumed annual adjustment based on the investment return assumption and the No postretirement adjustment is guaranteed. Actual adjustments are based on Salary Increases: December 31, 2023 December 31, 2024 Entry Age Normal Fair Value 6.8% 0.1% to 5.7% 2020 WRS Experience Mortality Table 1.7% Actuarial assumptions are based upon an experience study conducted in 2024 that covered a three-year period from January 1, 2021 to December 31, 2023. Based on this experience study, actuarial assumptions used to measure the total pension liability changed from prior year, including the discount rate, long-term expected rate of return, postretirement adjustment, price inflation, mortality and separation rates. The total pension liability for December 31, 2024 is based upon a roll-forward of the liability calculated from the December 31, 2023 actuarial valuation. Page 96 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (61) NOTE 5 OTHER INFORMATION (CONTINUED) A. Wisconsin Retirement System Pension Plan Benefits (Continued) Pension Assets, Liabilities, Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) Long-Term Expected Return on Plan Assets The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Long-Term Long-Term Expected Expected Current Asset Nominal Rate Real Rate Allocation % of Return % of Return % 38.0 7.0 4.3 27.0 6.1 3.4 20.0 9.5 6.7 19.0 4.8 2.1 8.0 6.5 3.8 -12.0 3.7 1.1 100.0 7.5 4.8 70 6.5 3.8 30 7.4 4.7 100 6.9 4.2 may differ from actual monthly allocations. 2.6% asset allocations are managed within established ranges; target percentages New England Pension Consultants Long-Term U.S. CPI (Inflation) Forecast: Core Fund Asset Class: Public Equity Public Fixed Income Private Equity/Debt Inflation Sensitive U.S. Equities International Equities Total Total Core Fund Variable Fund Asset: Real Estate Leverage The investment policy used for the Core Fund involves reducing equity exposure by leveraging lower-volatility assets, such as fixed income securities. This results in an asset allocation beyond 100%. Currently, an asset allocation target of 12% policy leverage is used, subject to an allowable range of up to 20%. Page 97 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (62) NOTE 5 OTHER INFORMATION (CONTINUED) A. Wisconsin Retirement System Pension Plan Benefits (Continued) Pension Assets, Liabilities, Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) Single Discount Rate A single discount rate of 6.80% was used to measure the total pension liability, as opposed to a discount rate of 7.0% for the prior year. The discount rate is based on the expected rate of return on pension plan investments of 6.80% and a municipal bond rate of 3.77% (Source: “20-Bond GO Index” is the Bond Buyer Index, general obligation, 20 years to maturity, mixed quality as of December 31, 2024. In describing this index, the Bond Buyer notes that the bonds’ average quality is roughly equivalent to Moody’s investors Service’s Aa2 rating and Standard and Poor’s Corp.’s AA.). Because of the unique structure of WRS, the 6.80% expected rate of return implies that a dividend of approximately 1.7% will always be paid. For purposes of the single discount rate, it was assumed that the dividend would always be paid. The projection of cash flows used to determine this single discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments (including expected dividends) of current plan members. Therefore, the expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the County’s Proportionate Share of the Net Pension Liability (Asset) to Changes in the Discount Rate The following presents the County’s proportionate share of the net pension liability (asset) calculated using the discount rate of 6.80%, as well as what the County’s proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (5.80%) or 1 percentage-point higher (7.80%) than the current rate: Current 1% Decrease Discount Rate 1% Increase (5.80%) (6.80%) (7.80%) 35,362,925$ 3,769,510$ 18,676,705$ County's Proportionate Share of the Net Pension Liability Page 98 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (63) NOTE 5 OTHER INFORMATION (CONTINUED) C. Risk Management The County is exposed to various risks of loss related to torts; thefts of, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The County maintains a combination of commercial insurance coverage and self-insurance programs to cover each of those risks of loss. Management believes such coverage is sufficient to preclude any significant uninsured losses to the County. Health Care Risk Management The health care industry is subject to numerous laws and regulations of federal, state and local governments. These laws and regulations include, but are not necessarily limited to, matters such as licensure, accreditation, government health care program participation requirements, reimbursement for resident services, and Medicare and Medicaid fraud and abuse. Recently, government activity has increased with respect to investigations and allegations concerning possible violations of fraud and abuse statutes and regulations by health care providers. Violation of these laws and regulations could result in expulsion from government health care programs together with the imposition of significant fines and penalties, as well as significant repayments for resident services previously billed. Management of the Home and the County believe that all material commitments and contingencies have been disclosed. Health Insurance Funds The County has an established health insurance program. This program is funded through “premiums” charged monthly to the participants in the plan. The County portion of the monthly premium is charged to various departments based on actual participation by employees. PreferredOne currently administers the plan for a monthly fee based on the number of participating individuals. Claims are paid by PreferredOne and reimbursed by the County on a weekly basis. Reinsurance for specific and stop-loss covers individual claims in excess of $175,000 per year (for renewal period ended October 31, 2025), and aggregate stop-loss is set at 120% of anticipated claims. During 2025, the County plan net position in the fund at December 31, 2025, was $5,091,689. Workers’ Compensation Fund The County is self-insured for workers’ compensation coverage. This program is funded through “premiums” charged to various County departments. Claims are paid by the County, through a TPA, Wisconsin Municipal Insurance. Stop-loss insurance is carried through Safety National and covers individual claims in excess of $550,000 each to a maximum of $1,000,000. In addition to in-house administrative staff, the County retains outside legal and medical expertise for assistance in settling claims. The balance in this fund at December 31, 2025, was $1,295,013. Page 99 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (64) NOTE 5 OTHER INFORMATION (CONTINUED) C. Risk Management (Continued) Changes in the claims liabilities for 2025 and 2024 for the health insurance fund and workers’ compensation fund were as follows: 2025 2024 2025 2024 Estimated Claims Outstanding - January 1 1,456,540$ $1,999,383 479,280$ $439,007 Current Year Claims and Charges 11,878,516 10,687,276 365,630 322,219 Claim Payments (12,522,337) (11,230,119) (405,903) (281,946) Estimated Claims Outstanding - December 31 812,719$ $1,456,540 439,007$ $479,280 Health Insurance Workers' Compensation Liability Insurance Fund The County has established an internal service fund to account for transactions associated with its insurance coverage through WMMIC (see below) and to account for funds set aside for financing other liability insurance claims against the County. Wisconsin Municipal Mutual Insurance Company (WMMIC) is a mutual company operating solely within the property and liability insurance industry. WMMIC was formed pursuant to an intergovernmental charter-contract in 1987 by municipal members. WMMIC was organized to provide property and liability insurance and risk management services to participant municipalities. As of December 31, 2025, WMMIC was owned by 18 municipalities (3 cities and 15 counties). Responsibility for the operation and management of WMMIC is vested in its board of directors which is comprised of various municipal officials. WMMIC issued tax-exempt revenue bonds totaling $13,935,000 in 1987 to provide capital for its operations. Each member, in turn, severally issued general obligation promissory notes at an aggregate amount equal to the revenue bonds and invested the proceeds in WMMIC. The County’s initial deposit in WMMIC was $720,214 which is reflected in the balance sheet of the County’s general fund. The debt issued by the County to finance this deposit was fully retired in 1997. The County’s allocated share of WMMIC’s member equity at December 31, 2025, was $709,948 and represented 3.08% of the total member equity at that date. Liability insurance provided to the members through WMMIC is to provide coverage in excess of prescribed self-insured amounts. WMMIC has contracted with a reinsurance company to cover losses (in excess of the self-insured retention of each member) which exceed $2,000,000 per occurrence up to a maximum loss of $15,000,000 per occurrence. WMMIC retains the first $2,000,000 of the excess over the self-insurance retention. The members incur all losses greater than $10,000,000 per occurrence or greater than $15,000,000 of aggregate losses in a policy year. Losses paid by WMMIC plus administrative costs are to be recovered through premiums of the participating pool of municipalities. The County’s share of such losses was 2.89% for 2025. A list of other members and their share of participation is in WMMIC’s financial report which is available from Wisconsin Municipal Mutual Insurance Company, 4785 Hayes Road, Madison, Wisconsin 53704-7364. Page 100 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (65) NOTE 5 OTHER INFORMATION (CONTINUED) C. Risk Management (Continued) Liability Insurance Fund (Continued) WMMIC contracts with Governmental Entities Mutual, Inc (GEM) to provide 100% reinsurance coverage for amounts in excess of the County’s self-insurance limits, which are $500,000. Each member is required to maintain a segregated fund on deposit with WMMIC. This fund is used by WMMIC to pay claims charged to the member and is subject to replenishment by the member on a quarterly basis (or more frequently, if necessary). The amount of the deposit has been currently set at $350,000 for the County. WMMIC has also set a policy that each member should maintain, in a segregated fund, cash reserves equal to one year’s SIR plus incurred but not reported (IBNR) claims less SIR funds on deposit with WMMIC. The self-funded liability insurance fund had a net position balance of $3,936,355 at December 31, 2025. The liability recorded for unpaid losses at December 31, 2025, was determined by WMMIC based on claim adjusters evaluations and other estimates. The liability includes those for IBNR losses. The liability represents the present value of the expected level of unpaid losses for the years of operations under WMMIC. Changes in claim liabilities for 2025 and 2024 are: 2025 2024 9,947$ $592,158 Current Year Claims and Changes 1,046,135 394,874 Claim Payments (1,038,048) (977,085) 18,034$ 9,947$ Estimated Claims Outstanding - January 1 Estimated Claims Outstanding - December 31 NOTE 6 OTHER POSTEMPLOYMENT BENEFIT PLAN The County adopted GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. The County engaged an actuary to determine the County’s liability for postemployment health care benefits other than pensions. Page 101 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (66) NOTE 6 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED) Single-Employer Plan Description Benefits Provided The County offered an early retirement program for eligible employees who elect to retire and are considered retirement age in accordance with Wisconsin Retirement System rules. All full-time employees are eligible for retiree group health plan insurance until Medicare eligibility once they satisfy the following requirements: Age 55 and 5 years of service for employees classified as General under Wisconsin Retirement System (WRS), or age 50 and 5 years of service for employees classified as Protective under WRS. The retiree health plan was closed effective July 1, 2021. Only active employees who retired by this date are eligible for retiree health care coverage. Otherwise, COBRA coverage for 18 months is offered. Retirees already enrolled in the retiree health plan are able to continue coverage until age 65. Employees Covered by Benefit Terms At December 31, 2025, the following employees were covered by the benefit terms: Inactive Plan Members or Beneficiaries Currently Receiving Benefit Payments 6 Active Plan Members - Total 6 Total OPEB Liability The County does not accumulate assets in a trust for payment of OPEB benefits. Accordingly, the County must report its total OPEB liability. The County’s total OPEB liability was determined by an actuarial valuation as of December 31, 2025. At December 31, 2025, the County reported a total OPEB liability of $30,033. Page 102 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (67) NOTE 6 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED) Single-Employer Plan Description (Continued) Total OPEB Liability (Continued) Changes in the County’s total OPEB liability were as follows: Plan Total Fiduciary Net OPEB OPEB Liability Net Position Liability Balance - December 31, 2024 55,857$ 55,857$ Changes for the Year: Interest 1,867 - 1,867 Differences between Expected and Actual Experience (2,906) - (2,906) Assumption Changes (48) - (48) Contributions - Employer - 24,737 (24,737) Benefit Payments (24,737) (24,737) - Net Changes (25,824) - (25,824) Balance - December 31, 2025 30,033$ -$ 30,033$ Actuarial Assumptions The total OPEB liability in the actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Measurement Date Discount Rate 20-Year Municipal Bond Yield Inflation Rate Salary Increases Medical Trend Rate Mortality: General Employees Protective Employees Surviving Spouses Table Fully Generational Using Scale MP-2021 Scale MP-2021 Scale MP-2021 SOA Pub-2010 General Headcount Weighted Mortality SOA Pub-2010 Public Safety Headcount Weighted Mortality Table Fully Generational Using SOA Pub-2010 Contingent Survivor Headcount Weighted Mortality Table Fully Generational Using January 1, 2025 4.83% 4.83% 3.00% 3.00% 8.0% decreasing to 4.5% in 2031 Discount Rate The discount rate used to measure the total OPEB liability was 4.83% which was increased from 4.20% in the prior actuarial valuation. The discount rate is based upon all years of projected payments discounted at a municipal bond rate of 4.83%. Page 103 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (68) NOTE 6 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED) Single-Employer Plan Description (Continued) Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the County, as well as what the County’s net OPEB liability would be if it were calculated using a discount rate that is 1% lower or 1% higher than the current discount rate: Current 1% Decrease Discount Rate 1% Increase (3.83%) (4.83%) (5.83%) Total OPEB Liability 30,358$ 30,033$ 29,718$ Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the County, as well as what the County’s net OPEB liability would be if it were calculated using health care cost trend rates that are 1% lower or 1% higher than the current health care cost trend rates: Health Care Cost 1% Decrease Trend Rates 1% Increase (7.0% (8.0% (9.0% Decreasing Decreasing Decreasing to 3.5%) to 4.5%) to 5.5%) Total OPEB Liability 29,561$ 30,033$ 30,512$ For the year ended December 31, 2025, the County recognized OPEB expense of $392,070. At December 31, 2025, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Description Resources Resources Difference between Expected and Actual Experience -$ 511,787$ Changes of Assumptions or Other Input 121,021 - Total 121,021$ 511,787$ Page 104 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (69) NOTE 6 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED) Single-Employer Plan Description (Continued) Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: OPEB Year Ending December 31, Expense 2026 (113,223)$ 2027 (113,228) 2028 (164,315) NOTE 7 FUND BALANCE CLASSIFICATIONS The fund balance classifications of the governmental funds as of December 31, 2025, were as follows: Nonspendable Restricted Assigned Unassigned Total Major Funds: General Fund: Prepayments 9,942$ -$ -$ -$ 9,942$ Receivable 1,116,745 - - - 1,116,745 Investment in WMMIC 720,214 - - - 720,214 Long-Term Receivables 277 - - - 277 Restricted (See Schedule B-2) - 13,878 - - 13,878 Assigned (See Schedule B-2) - - 1,083,401 - 1,083,401 Unassigned - - - 25,875,276 25,875,276 Subtotal General Fund 1,847,178 13,878 1,083,401 25,875,276 28,819,733 Health and Human Services Fund: Health and Human Service Programs - - 4,127,886 - 4,127,886 Subtotal Health and Human Services Fund - - 4,127,886 - 4,127,886 Capital Projects Fund - - 21,332,612 - 21,332,612 Debt Service Fund - 1,187,753 - - 1,187,753 Nonmajor Funds: Special Revenue Funds: Jail Assessment Fund Projects - 466,492 - - 466,492 K-9 Program - 1,865 - - 1,865 Drug Task Force - 105,956 - - 105,956 County Drug Fund - 91,803 - - 91,803 Land Records Fund - 79,392 - - 79,392 Dog License Fund Restricted for Animal Control - 35,662 - - 35,662 Total Governmental Fund Balances 1,847,178$ 1,982,801$ 26,543,899$ 25,875,276$ 56,249,154$ Page 105 of 201 ST. CROIX COUNTY, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (70) NOTE 8 COMMITMENTS During the current year, the County entered into a construction contract for the purpose of expanding the Hudson Highway Shop. At December 31, 2025 there was approximately $3,701,270 in additional construction costs left to be incurred for the remainder of the project. These costs will be expensed in the capital projects fund in subsequent years as incurred. Page 106 of 201 REQUIRED SUPPLEMENTARY INFORMATION Page 107 of 201 SCHEDULES Page 108 of 201 SCHEDULE 1 ST. CROIX COUNTY, WISCONSIN BUDGETARY COMPARISON SCHEDULE GENERAL FUND YEAR ENDED DECEMBER 31, 2025 See accompanying Note to Required Supplementary Information. (71) Variance with Final Budget Positive Original Final Actual (Negative) REVENUES Taxes 39,215,533$ 39,215,533$ 40,013,565$ 798,032$ Intergovernmental 7,959,238 7,959,238 8,176,505 217,267 Licenses and Permits 354,000 354,000 542,827 188,827 Fines and Forfeits 230,000 230,000 244,448 14,448 Public Charges for Services 3,054,742 3,054,742 3,546,966 492,224 Intergovernmental Charges for Services 131,800 131,800 141,721 9,921 Miscellaneous: Investment Income 1,535,000 1,535,000 4,514,437 2,979,437 Rent 184,000 184,000 261,363 77,363 Other 534,700 534,700 53,257 (481,443) Total Revenues 53,199,013 53,199,013 57,495,089 4,296,076 EXPENDITURES General Government 14,974,632 14,974,632 15,017,903 (43,271) Public Safety 20,384,790 20,384,790 19,854,028 530,762 Transportation 9,276,233 9,276,233 9,276,233 - Sanitation 285,686 285,686 274,054 11,632 Health and Human Services 1,336,993 1,336,993 1,292,265 44,728 Culture, Recreation, and Education 3,204,334 3,204,334 3,230,764 (26,430) Conservation and Development 3,154,580 3,154,580 3,180,418 (25,838) Total Expenditures 52,617,248 52,617,248 52,125,665 491,583 EXCESS OF REVENUES OVER EXPENDITURES 581,765 581,765 5,369,424 4,787,659 OTHER FINANCING USES Transfers Out - - (4,000,000) (4,000,000) Total Other Financing Uses NET CHANGE IN FUND BALANCE 581,765$ 581,765$ 1,369,424 787,659$ Fund Balance - Beginning of Year 27,450,309 FUND BALANCE - END OF YEAR 28,819,733$ Budgeted Amounts Page 109 of 201 SCHEDULE 2 ST. CROIX COUNTY, WISCONSIN BUDGETARY COMPARISON SCHEDULE HEALTH AND HUMAN SERVICES SPECIAL REVENUE FUND YEAR ENDED DECEMBER 31, 2025 (BUDGETARY BASIS) See accompanying Note to Required Supplementary Information. (72) Variance with Final Budget Positive Original Final Actual (Negative) REVENUES Taxes 9,815,676$ 9,815,676$ 9,815,676$ -$ Intergovernmental 9,008,161 9,008,161 9,509,499 501,338 Public Charges for Services 9,144,043 9,144,043 7,788,474 (1,355,569) Intergovernmental Charges for Services 10,000 10,000 13,058 3,058 Miscellaneous: Other 480,000 480,000 814,436 334,436 Total Revenues 28,457,880 28,457,880 27,941,143 (516,737) EXPENDITURES Health and Human Services 28,432,479 28,432,479 28,023,051 409,428 NET CHANGE IN FUND BALANCE 25,401$ 25,401$ (81,908) (926,165)$ Fund Balance - Beginning of Year 4,209,794 FUND BALANCE - END OF YEAR 4,127,886$ Budgeted Amounts Page 110 of 201 SCHEDULE 3 ST. CROIX COUNTY, WISCONSIN SCHEDULE OF PROPORTIONATE SHARE OF WISCONSIN RETIREMENT SYSTEM NET PENSION PLAN LIABILITY (ASSET) LAST TEN FISCAL YEARS See accompanying Note to Required Supplementary Information. (73) Proportionate Share of the Net Plan Fiduciary Proportionate Pension Liability Net Position as a Proportion of Share of the (Asset) as a Percentage of the the Net Pension Net Pension Covered Percentage of Total Pension Year Ending Liability (Asset) Liability (Asset) Payroll Covered Payroll Liability 12/31/2024 0.22940537% 3,769,510$ 39,828,526$ 9.46% 98.79% 12/31/2023 0.22805362% 3,390,715 37,841,346 8.96% 98.85% 12/31/2022 0.22927637% 12,146,382 35,625,961 34.09% 95.72% 12/31/2021 0.22887432% (18,447,691) 34,722,717 -53.13% 106.02% 12/31/2020 0.22902798% (14,298,534) 34,269,070 -41.72% 105.26% 12/31/2019 0.22620425% (7,293,857) 32,517,475 -22.43% 102.96% 12/31/2018 0.22225145% 7,907,009 31,477,566 25.12% 96.45% 12/31/2017 0.21653928% (6,429,308) 30,109,574 -21.35% 102.93% 12/31/2016 0.21478422% 1,770,334 28,587,877 6.19% 99.12% 12/31/2015 0.21616914% 3,512,707 27,892,981 12.59% 98.20% Page 111 of 201 SCHEDULE 4 ST. CROIX COUNTY, WISCONSIN SCHEDULE OF CONTRIBUTIONS TO WISCONSIN RETIREMENT SYSTEM NET PENSION PLAN LAST TEN FISCAL YEARS See accompanying Note to Required Supplementary Information. (74) Schedule of Contributions Last Ten Fiscal Years Contributions in Relation to the Contributions Contractually Contractually Contribution as a Percentage Required Required Deficiency Covered of Covered Year Contributions Contributions (Excess) Payroll Payroll 12/31/2025 3,637,534$ (3,637,534)$ -$ 44,105,520$ 8.25% 12/31/2024 3,294,731 (3,294,731) - 39,829,807 8.27% 12/31/2023 3,028,484 (3,028,484) - 37,841,345 8.00% 12/31/2022 2,652,232 (2,652,232) - 35,625,961 7.44% 12/31/2021 2,646,480 (2,646,480) - 34,722,717 7.62% 12/31/2020 2,621,770 (2,621,770) - 34,269,070 7.65% 12/31/2019 2,370,927 (2,370,927) - 32,517,475 7.29% 12/31/2018 2,343,433 (2,343,433) - 31,477,566 7.44% 12/31/2017 2,038,523 (2,038,523) - 30,109,574 6.77% 12/31/2016 2,039,909 (2,039,909) - 28,587,877 7.14% *The amounts presented for each fiscal year were determined as of 12/31 that occurred within the fiscal year. Notes to Schedules Change of Benefit Terms. There were no changes of benefit terms for any participating employer in W RS. Page 112 of 201 SCHEDULE 5 ST. CROIX COUNTY, WISCONSIN SCHEDULE OF CHANGES IN THE COUNTY’S OPEB LIABILITY AND RELATED RATIOS LAST TEN FISCAL YEARS See accompanying Note to Required Supplementary Information. (75) 2018 2019 2020 2021 2022 2023 2024 2025 TOTAL OPEB LIABILITY Interest 234,828$ 209,582$ 199,270$ 25,666$ 23,356$ 5,373 1,664 1,867 Changes of Benefit Terms - - (3,446,018) - - (54,822) - - Differences between Expected and Actual Experience (1,770,239) 69,350 (1,581,587) (27,024) (835,554) (11,108) 20,745 (2,906) Changes of Assumptions or Other Input (460,537) 390,464 102,760 (5,801) (7,090) 849 86 (48) Benefit Payments (176,480) (114,118) (178,741) (173,468) (157,379) (30,269) (16,293) (24,737) NET CHANGE IN TOTAL OPEB LIABILITY (1,661,854) 969,621 (4,414,149) (180,627) (976,667) (89,977) 6,202 (25,824) Total OPEB Liability - Beginning 6,403,308 4,741,454 5,711,075 1,296,926 1,116,299 139,632 49,655 55,857 TOTAL OPEB LIABILITY - ENDING (a) 4,741,454$ 5,711,075$ 1,296,926$ 1,116,299$ 139,632$ 49,655$ 55,857$ 30,033$ PLAN FIDUCIARY NET POSITION - ENDING (b) -$ -$ -$ -$ -$ -$ -$ -$ DISTRICT'S NET OPEB LIABILITY - ENDING (a) - (b) 4,741,454$ 5,711,075$ 1,296,926$ 1,116,299$ 139,632$ 49,655$ 55,857$ 30,033$ Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability - % - % - % - % - % - % - % - % Covered Employee Payroll 28,838,950$ 33,094,609$ 32,235,819$ 33,202,894$ 30,874,438$ 31,800,671$ 37,841,346$ -$ County's Net OPEB Liability as a Percentage of Covered-Employee Payroll 0.16 % 0.17 % 0.04 % 3.36% 0.45% 0.16% 0.00 % - % Page 113 of 201 ST. CROIX COUNTY, WISCONSIN NOTE TO REQUIRED SUPPLEMENTARY INFORMATION YEAR ENDED DECEMBER 31, 2025 (76) BUDGETARY INFORMATION GASB Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis— for State and Local Governments, requires the presentation of budgetary comparison schedules for the general fund and for each major special revenue fund. Budgetary information for the general fund is derived from the County’s annual operating budget. Budgetary information for the health and human services fund is derived from the department’s approved budget. The County’s annual operating budget is adopted in accordance with Chapter 65 of the Wisconsin Statutes and on a basis consistent with budgetary basis of accounting principles. Changes to appropriations authorized in the adopted budget generally require a vote of two-thirds of the entire membership of the governing body. The County’s legal budget is adopted at the major function level in the general fund (i.e., general government) and at the fund level in all other funds. The County exercises budgetary expenditure control at the department level. The general fund reported an unfavorable budget variance in the Transportation major function. Budget amounts in the financial statements include both original adopted budget and the final budget. Changes to the budget during the year, if any, generally include amendments authorized by the governing body, additions of approved carryover amounts and appropriations of revenues and other sources for specified expenditures/uses. Appropriated budget amounts in the general fund lapse at the end of the year unless specifically carried over for financing subsequent year expenditures. Major Fund expenditures in excess of appropriations will be financed by future period appropriations or offset with intergovernmental revenues if applicable. Page 114 of 201 SUPPLEMENTARY INFORMATION Page 115 of 201 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Page 116 of 201 SCHEDULE A-1 ST. CROIX COUNTY, WISCONSIN COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS DECEMBER 31, 2025 (77) Total Total Jail St. Croix Valley Dog Nonmajor Nonmajor Assessment Drug Task County Land License Special Governmental Fund K-9 Fund Force Fund Drug Fund Records Fund Fund Revenue Funds Funds ASSETS Treasurer's Cash and Investments 462,788$ -$ 134,297$ 91,803$ 68,712$ 36,603$ 794,203$ 794,203$ Accounts Receivable - - - - 12,376 - 12,376 12,376 Due from Other Governmental Units 3,926 8,210 8,730 - - 126 20,992 20,992 Total Assets 466,714$ 8,210$ 143,027$ 91,803$ 81,088$ 36,729$ 827,571$ 827,571$ LIABILITIES AND FUND BALANCES LIABILITIES Vouchers Payable -$ -$ 13,974$ -$ -$ -$ 13,974$ 13,974$ Accrued Payroll - - - - 1,696 - 1,696 1,696 Due Other Governmental Units 222 - 23,097 - - 1,067 24,386 24,386 Due to Other Funds - 6,345 - - - - 6,345 6,345 Total Liabilities 222 6,345 37,071 - 1,696 1,067 46,401 46,401 FUND BALANCES Restricted 466,492 1,865 105,956 91,803 79,392 35,662 781,170 781,170 Unassigned - - - - - - - - Total Fund Balances 466,492 1,865 105,956 91,803 79,392 35,662 781,170 781,170 Total Liabilities and Fund Balances 466,714$ 8,210$ 143,027$ 91,803$ 81,088$ 36,729$ 827,571$ 827,571$ Special Revenue Funds Page 117 of 201 SCHEDULE A-2 ST. CROIX COUNTY, WISCONSIN COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31, 2025 (78) Total Total Jail St. Croix Valley Dog Nonmajor Nonmajor Assessment Drug Task County Land License Special Governmental Fund K-9 Fund Force Fund Drug Fund Records Fund Fund Revenue Funds Funds REVENUES Intergovernmental -$ -$ 33,311$ -$ 25,000$ -$ 58,311$ 58,311$ Fines, Forfeitures, and Penalties 67,021 - - 46,392 - - 113,413 113,413 Public Charges for Services - - - - 128,356 21,408 149,764 149,764 Miscellaneous: Other - 48,343 - 10 - - 48,353 48,353 Total Revenues 67,021 48,343 33,311 46,402 153,356 21,408 369,841 369,841 EXPENDITURES General Government 46,817 - - - 134,706 - 181,523 181,523 Public Safety - 52,579 30,215 61,551 - - 144,345 144,345 Health and Human Services - - - - - 18,900 18,900 18,900 Total Expenditures 46,817 52,579 30,215 61,551 134,706 18,900 344,768 344,768 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 20,204 (4,236) 3,096 (15,149) 18,650 2,508 25,073 25,073 NET CHANGE IN FUND BALANCES 20,204 (4,236) 3,096 (15,149) 18,650 2,508 25,073 25,073 Fund Balances - Beginning of Year 446,288 6,101 102,860 106,952 60,742 33,154 756,097 756,097 FUND BALANCES - END OF YEAR 466,492$ 1,865$ 105,956$ 91,803$ 79,392$ 35,662$ 781,170$ 781,170$ Special Revenue Funds Page 118 of 201 SCHEDULE B-1 ST. CROIX COUNTY, WISCONSIN DETAILED BALANCE SHEET GENERAL FUND DECEMBER 31, 2025 (79) ASSETS Treasurer's Cash and Investments 25,447,610$ Taxes Receivable: Current Taxes Receivable 26,279,065 Delinquent Taxes Receivable 1,096,189 Tax Deeds Owned by County 20,556 Accounts Receivable 2,133,213 Lease Receivable 1,889,082 Due from Other Governments 2,328,764 Long-Term Receivables 277 Due from Other Funds: Cash Overdrafts at Year-End 6,345 Prepayments 9,942 Advances to Other Funds: Investment in Public-Entity Risk Pool 720,214 Total Assets 59,931,257$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES LIABILITIES Vouchers and Accounts Payable 757,859$ Accrued Salaries and Wages 759,065 Payroll Deductions 763,769 Due to Other Governmental Units 374,046 Unearned Revenues: Unearned Grant Revenue 309,370 Special Deposits 16,814 Total Liabilities 2,980,923 DEFERRED INFLOWS OF RESOURCES Succeeding Year's Property Taxes 26,279,065 Deferred Inflows Related to Leases 1,851,536 Total Deferred Inflows of Resources 28,130,601 FUND BALANCES Nonspendable for: Delinquent Taxes 1,116,745 Investment in WMMIC 720,214 Prepayments 9,942 Long-Term Receivables 277 Restricted 13,878 Assigned 1,083,401 Unassigned 25,875,276 Total Fund Balances 28,819,733 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 59,931,257$ Page 119 of 201 SCHEDULE B-2 ST. CROIX COUNTY, WISCONSIN STATEMENT OF CHANGES IN FUND BALANCE GENERAL FUND YEAR ENDED DECEMBER 31, 2025 (80) County Internal Balance - Fund Balance - County Other Total December 31, Number January 1, 2025 Appropriations Revenues In Out In Out Available Expenditures 2025 Nonspendable: Delinquent Taxes 1,198,872$ -$ -$ -$ 82,127$ -$ -$ 1,116,745$ -$ 1,116,745$ Investment in WMMIC 720,214 - - - - - - 720,214 - 720,214 Prepayments 21,083 - - - 11,141 - - 9,942 - 9,942 Long-Term Receivables 38,188 - - - 37,911 - - 277 - 277 Total Nonspendable 1,978,357 - - - 131,179 - - 1,847,178 - 1,847,178 Restricted: Sheriff Confiscated Property 110 196 - - - - - - 196 - 196 Enforcement 110 12,888 - - - - - - 12,888 - 12,888 Sheriff Counteract 110 794 - - - - - - 794 - 794 Total Restricted 13,878 - - - - - - 13,878 - 13,878 Assigned: Continuing Appropriations: REI Recycling Grant 125 - - 205,543 - - - - 205,543 205,543 - County Farm 111 - - - - - - - - - - Parks 120 1,295,470 487,917 - - - - - 1,783,387 1,132,591 650,796 Land and Water Conservation 130 464,626 224,339 276,696 - - - - 965,661 542,748 422,913 Pesticide Training 270 9,692 - - - - - - 9,692 - 9,692 Total Assigned Balances 1,769,788 712,256 482,239 - - - - 2,964,283 1,880,882 1,083,401 Unassigned: Highway Appropriation and Aids - 6,789,049 2,564,673 - - - - 9,353,722 9,353,722 - General County 23,688,286 18,711,350 28,235,522 131,179 - - 4,000,000 66,766,337 40,891,061 25,875,276 Total Unassigned 23,688,286 25,500,399 30,800,195 131,179 - - 4,000,000 76,120,059 50,244,783 25,875,276 Total General Fund 27,450,309$ 26,212,655$ 31,282,434$ 131,179$ 131,179$ -$ 4,000,000$ 80,945,398$ 52,125,665$ 28,819,733$ Transfers General Fund Other Funds Page 120 of 201 SCHEDULE B-3 ST. CROIX COUNTY, WISCONSIN DETAILED SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET TO ACTUAL GENERAL FUND YEAR ENDED DECEMBER 31, 2025 (81) Variance with Final Budget Positive Original Final Actual (Negative) REVENUES Taxes: General Property Taxes 26,212,655$ 26,212,655$ 26,212,655$ -$ Tax Incremental Districts Refunds - - 26,152 26,152 Forest Crop Taxes 15,878 15,878 21,424 5,546 Sales Tax 12,537,000 12,537,000 13,190,430 653,430 Interest on Taxes 300,000 300,000 371,733 71,733 Penalty on Taxes 150,000 150,000 191,171 41,171 Total Taxes 39,215,533 39,215,533 40,013,565 798,032 Intergovernmental: Federal Grants and Aids: State Shared Taxes: Shared Taxes from State 2,465,533 2,465,533 1,895,307 (570,226) State Grants and Aids: Clerk of Courts 466,000 466,000 553,887 87,887 Victim/Witness VOCA Grant 186,000 186,000 248,590 62,590 Law Enforcement 163,476 163,476 83,001 (80,475) Law Enforcement - TAD Grant 146,517 146,517 127,399 (19,118) Vest Grant - - 11,676 11,676 Jail 10,000 10,000 24,959 14,959 Emergency Government 87,317 87,317 536,355 449,038 General Transportation Aids 2,487,184 2,487,184 2,487,184 - Recycling 199,054 199,054 200,482 1,428 Hazardous Waste 19,979 19,979 22,509 2,530 Child Support 1,120,668 1,120,668 1,063,782 (56,886) Veterans Service Officer 21,000 21,000 32,071 11,071 Snowmobile Trail Maintenance 74,310 74,310 264,689 190,379 Land and Water Conservation 512,200 512,200 600,017 87,817 DOJ - Pierce/Polk/St. Croix Drug Program - - 24,597 24,597 Total Intergovernmental 7,959,238 7,959,238 8,176,505 217,267 Licenses and Permits: Zoning Permits 354,000 354,000 542,827 188,827 Fines, Forfeitures and Penalties: County Ordinance Forfeitures 230,000 230,000 244,448 14,448 Budgeted Amounts Page 121 of 201 SCHEDULE B-3 (CONTINUED) ST. CROIX COUNTY, WISCONSIN DETAILED SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET TO ACTUAL (CONTINUED) GENERAL FUND YEAR ENDED DECEMBER 31, 2025 (82) Variance with Final Budget Positive Original Final Actual (Negative) REVENUES (CONTINUED) Public Charges for Services: Register of Deeds Fees 1,000,000$ 1,000,000$ 1,078,851$ 78,851$ Clerk of Court Fees 586,400 586,400 750,754 164,354 NSF Checks - Clerk of Courts 400 400 498 98 Miscellaneous Circuit Court Fees 4,500 4,500 5,708 1,208 Medical Examiner Fees 90,000 90,000 139,541 49,541 District Attorney Fees 53,500 53,500 66,318 12,818 Tax Collection Fee 110,000 110,000 133,188 23,188 County Clerk Fees/Game Licenses 175,000 175,000 187,510 12,510 Sheriff Fees 511,676 511,676 656,558 144,882 Recycling Education Revenue 11,501 11,501 6,620 (4,881) County Parks Revenue - Troy 435,765 435,765 378,444 (57,321) University Extension Charges 1,000 1,000 2,145 1,145 Land and Water Conservation 75,000 75,000 102,776 27,776 Ag Use Penalty - - 38,055 38,055 Total Public Charges for Services 3,054,742 3,054,742 3,546,966 492,224 Intergovernmental Charges for Services: Local Governments: Elections 20,000 20,000 26,403 6,403 County Departments: Computer Repair and Replacements 111,800 111,800 115,318 3,518 Total Intergovernmental Charges for Services 131,800 131,800 141,721 9,921 Miscellaneous: Investment Income: General Investments 1,535,000 1,535,000 4,514,437 2,979,437 Other: Rent of County Buildings 184,000 184,000 261,363 77,363 Miscellaneous 534,700 534,700 53,257 (481,443) Total Miscellaneous 2,253,700 2,253,700 4,829,057 2,575,357 Total Revenues 53,199,013 53,199,013 57,495,089 4,296,076 Budgeted Amounts Page 122 of 201 SCHEDULE B-3 (CONTINUED) ST. CROIX COUNTY, WISCONSIN DETAILED SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET TO ACTUAL (CONTINUED) GENERAL FUND YEAR ENDED DECEMBER 31, 2025 (83) Variance with Final Budget Positive Original Final Actual (Negative) EXPENDITURES General Government: County Board 155,935$ 155,935$ 121,057$ 34,878$ Clerk of Courts 2,383,994 2,383,994 2,536,150 (152,156) Circuit Court 1,071,198 1,071,198 1,123,679 (52,481) Drug Court - - 16,589 (16,589) Medical Examiner 466,434 466,434 452,661 13,773 Corporation Counsel 960,417 960,417 960,595 (178) Victim/Witness Program 466,238 466,238 455,944 10,294 District Attorney 915,874 915,874 833,908 81,966 District Attorney Diversion Coordinator 107,666 107,666 138,312 (30,646) Administrator 519,588 519,588 476,689 42,899 County Clerk 412,353 412,353 391,298 21,055 Elections 79,050 79,050 55,464 23,586 Personnel and Recruitment 621,340 621,340 604,237 17,103 Information Technology 2,811,746 2,811,746 2,771,056 40,690 Finance Department 674,314 674,314 669,645 4,669 County Treasurer 458,056 458,056 469,555 (11,499) General County Buildings 2,303,051 2,303,051 2,368,140 (65,089) Register of Deeds 567,378 567,378 572,924 (5,546) Total General Government 14,974,632 14,974,632 15,017,903 (43,271) Public Safety: Sheriff 11,088,941 11,088,941 10,969,624 119,317 Sheriff Towing - - 20,263 (20,263) TAD Grant 607 607 698 (91) Central Communications Center 300 300 3,732 (3,432) Community Justice Collaborating Council 1,030,968 1,030,968 772,897 258,071 County Jail 5,397,847 5,397,847 5,030,975 366,872 Emergency Planning (SARA) - - 214 (214) Emergency Government 2,866,127 2,866,127 3,055,625 (189,498) Total Public Safety 20,384,790 20,384,790 19,854,028 530,762 Public Works: Transportation: Highway Department (see Schedule C-1) 9,276,233 9,276,233 9,276,233 - Sanitation: Hazardous Waste Disposal 82,131 82,131 70,093 12,038 Recycling 203,555 203,555 203,961 (406) Total Sanitation 285,686 285,686 274,054 11,632 Total Public Works 9,561,919 9,561,919 9,550,287 11,632 Health and Human Services: Child Support 985,905 985,905 942,481 43,424 Veterans Service Officer 351,088 351,088 349,784 1,304 Total Health and Human Services 1,336,993 1,336,993 1,292,265 44,728 Budgeted Amounts Page 123 of 201 SCHEDULE B-3 (CONTINUED) ST. CROIX COUNTY, WISCONSIN DETAILED SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET TO ACTUAL (CONTINUED) GENERAL FUND YEAR ENDED DECEMBER 31, 2025 (84) Variance with Final Budget Positive Original Final Actual (Negative) EXPENDITURES (CONTINUED) Culture, Recreation, and Education: Municipal Library Allocations 1,869,030$ 1,869,030$ 1,843,915$ 25,115$ Parks Admin 1,000,992 1,000,992 952,859 48,133 Glen Hills Park - - 167,772 (167,772) Snowmobile Trail Maintenance - - 43,209 (43,209) Fairgrounds Maintenance 80,000 80,000 80,000 - University Extension 254,312 254,312 143,009 111,303 Total Culture, Recreation, and Education 3,204,334 3,204,334 3,230,764 (26,430) Conservation and Development: Economic Development Grant 115,500 115,500 116,322 (822) Zoning 2,227,541 2,227,541 2,157,921 69,620 Land Conservation 811,539 811,539 860,158 (48,619) Wildlife Damage Claims - - 46,017 (46,017) Total Conservation and Development 3,154,580 3,154,580 3,180,418 (25,838) Total Expenditures 52,617,248 52,617,248 52,125,665 491,583 EXCESS OF REVENUES OVER EXPENDITURES 581,765 581,765 5,369,424 4,787,659 OTHER FINANCING USES To Debt Service Fund - - (500,000) (500,000) To Capital Projects Fund - - (3,500,000) (3,500,000) Total Other Financing Uses - - (4,000,000) (4,000,000) NET CHANGE IN FUND BALANCE 581,765$ 581,765$ 1,369,424 787,659$ Fund Balance - Beginning of Year 27,450,309 FUND BALANCE - END OF YEAR 28,819,733$ Budgeted Amounts Page 124 of 201 SCHEDULE C ST. CROIX COUNTY, WISCONSIN DETAILED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION HIGHWAY DEPARTMENT ENTERPRISE FUND YEAR ENDED DECEMBER 31, 2025 (85) 9,353,722$ 4,679,608 44,622 6,115,178 583,008 429,254 1,802,938 23,008,330 1,023,010 65,517 181,108 208,384 168,341 80,894 - 4,091,086 9,931,939 1,347 6,204,690 299,853 265,118 22,521,287 487,043 44,199,851 44,686,894$ (1) Charges to County for Highway Maintenance and Construction Consisted of the Following: County Appropriations 6,789,049$ State Transportation Aids 2,564,673 Total 9,353,722$ NET POSITION - END OF YEAR CHANGE IN NET POSITION Net Position - Beginning of Year Total Operating Expenses State: Highway Maintenance and Construction County Aid Bridge Construction Other Governmental Units Local Departments Other: Net Change in Accrued Leave/OPEB Liabilities General Maintenance Surveying Engineering Transportation Cost Pools: Machinery Operations Gravel Pits and Quarries Services Provided: State Performance Based Maintenance County: Public Liability Insurance Other Miscellaneous Highway Revenues Vehicle Registration Fees Total Operating Revenues OPERATING EXPENSES Administration and General: Administration Other Revenue from State: OPERATING REVENUES Charges for Services: County Highway Maintenance and Construction(1) State Highway Maintenance and Construction Local Districts - County Aid Bridge Local Districts - Other Miscellaneous: Page 125 of 201 SCHEDULE D-1 ST. CROIX COUNTY, WISCONSIN COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS DECEMBER 31, 2025 (86) Self-Funded Self-Funded Workers' Self-Funded Retirement Health Compensation Liability Health Savings County Insurance Insurance Insurance Account Fleet Total ASSETS Treasurer's Cash and Investments 5,644,644$ 1,810,263$ 3,604,389$ 2,326,960$ 156,014$ 13,542,270$ Cash and Investments Held by Fiscal Agent - 53,071 350,000 - - 403,071 Accounts Receivable 259,328 - - - - 259,328 Total Assets 5,903,972 1,863,334 3,954,389 2,326,960 156,014 14,204,669 LIABILITIES Accounts Payable 451,383 129,314 - - 324 581,021 Accrued Claims/Losses Payable 360,900 439,007 18,034 - - 817,941 Total Liabilities 812,283 568,321 18,034 - 324 1,398,962 NET POSITION - UNRESTRICTED 5,091,689$ 1,295,013$ 3,936,355$ 2,326,960$ 155,690$ 12,805,707$ Page 126 of 201 SCHEDULE D-2 ST. CROIX COUNTY, WISCONSIN COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS YEAR ENDED DECEMBER 31, 2025 (87) Self-Funded Self-Funded Workers' Self-Funded Retirement Health Com pensation Liabilit y Health Savings Count y Insurance Insurance Insurance Account Fleet Total OPERATING REVENUES Charges for Services 12,034,418 $ 717,796 $ 920,000 $ - $ 140,018$ 13,812,232 $ Other 1,795,119 - 56,844 - - 1,851,963 Total Operating Revenues 13,829,537 717,796 976,844 - 140,018 15,664,195 OPERATING EXPENSES Premiums and Claims 12,143,459 365,630 1,117,567 133,351 - 13,760,007 Fleet Costs - - - - 140,692 140,692 Administrative 482,520 85,364 177,235 - - 745,119 Total Operating Expenses 12,625,979 450,994 1,294,802 133,351 140,692 14,645,818 OPERATING INCOME (LOSS) 1,203,558 266,802 (317,958) (133,351) (674) 1,018,377 NONOPERATING REVENUES Interest Revenue - - 45,271 - - 45,271 INCOME (LOSS) BEFORE OTHER FINANCING SOURCES 1,203,558 266,802 (272,687) (133,351) (674) 1,063,648 CHANGE IN NET POSITION 1,203,558 266,802 (272,687) (133,351) (674) 1,063,648 Net Position - Beginning of Year 3,888,131 1,028,211 4,209,042 2,460,311 156,364 11,742,059 NET POSITION - END OF YEAR 5,091,689$ 1,295,013 $ 3,936,355 $ 2,326,960 $ 155,690 $ 12,805,707 $ Page 127 of 201 SCHEDULE D-3 ST. CROIX COUNTY, WISCONSIN COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED DECEMBER 31, 2025 (88) Self-Funded Self-Funded Workers' Self-Funded Retirement Health Com pensation Liabilit y Health Savings Count y Insurance Insurance Insurance Account Fleet Total CASH FLOWS FROM OPERATING ACTIVITIES Cash Received for Goods and Services: County/Departments 13,858,844 $ 717,796 $ 976,844 $ - $ 142,255$ 15,695,739 $ Cash Payments for Claims/Premiums/Administration (13,270,233) (361,953) (1,286,715) (133,351) (152,925) (15,205,177) Net Cash Provided (Used) by Operating Activities 588,611 355,843 (309,871) (133,351) (10,670) 490,562 CASH FLOWS FROM INVESTING ACTIVITIES Interest on Investments - - 45,271 - - 45,271 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 588,611 355,843 (264,600) (133,351) (10,670) 535,833 Cash and Cash Equivalents - Beginning of Year 5,056,033 1,507,491 4,218,989 2,460,311 166,684 13,409,508 CASH AND CASH EQUIVALENTS - END OF YEAR 5,644,644$ 1,863,334 $ 3,954,389 $ 2,326,960 $ 156,014 $ 13,945,341 $ Page 128 of 201 SCHEDULE D-3 (CONTINUED) ST. CROIX COUNTY, WISCONSIN COMBINING STATEMENT OF CASH FLOWS (CONTINUED) INTERNAL SERVICE FUNDS YEAR ENDED DECEMBER 31, 2025 (89) Self-Funded Self-Funded Workers' Self-Funded Retirement Health Compensation Liability Health Savings County Insurance Insurance Insurance Account Fleet Total RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating Income (Loss) 1,203,558$ 266,802$ (317,958)$ (133,351)$ (674)$ 1,018,377$ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Change in Assets and Liabilities: (Increase) Decrease in: Accounts Receivable 29,307 - - - 2,237 31,544 Increase (Decrease) in: Accounts Payable (308,646) 129,314 - - (12,233) (191,565) Accrued Claims/Losses Payable (335,608) (40,273) 8,087 - - (367,794) Net Cash Provided (Used) by Operating Activities 588,611$ 355,843$ (309,871)$ (133,351)$ (10,670)$ 490,562$ RECONCILIATION OF CASH AND INVESTMENTS TO CASH AND CASH EQUIVALENTS Cash and Investments: Treasurer's Cash and Investments 5,644,644$ 1,810,263$ 3,604,389$ 2,326,960$ 156,014$ 13,542,270$ Cash and Investments Held by Fiscal Agent - 53,071 350,000 - - 403,071 Cash and Cash Equivalents 5,644,644$ 1,863,334$ 3,954,389$ 2,326,960$ 156,014$ 13,945,341$ Page 129 of 201 SCHEDULE E-1 ST. CROIX COUNTY, WISCONSIN COMBINING STATEMENT OF FIDUCIARY NET POSITION CUSTODIAL FUNDS DECEMBER 31, 2025 (90) Permitting Register and Platting Tax Agency Sheriff of Deeds Clerk of Court Escrow Total ASSETS Treasurer's Cash and Investments 59,634,499$ -$ 173,563$ -$ 43,569$ 59,851,631$ Departmental Cash and Investments - 245,382 - 1,832,176 - 2,077,558 Special Assessments Receivable 42,066 - - - - 42,066 Total Assets 59,676,563 245,382 173,563 1,832,176 43,569 61,971,253 LIABILITIES Due to Other Governments 47,190,899 - 173,563 224,575 43,569 47,632,606 Due to Individuals 52,479 - - - - 52,479 Accounts Payable 1,172,357 - - 445,349 - 1,617,706 Deferred Tax Roll Revenues 58,642 - - - - 58,642 Total Liabilities 48,474,377 - 173,563 669,924 43,569 49,361,433 DEFERRED INFLOWS OF RESOURCES Succeeding Year's Property Taxes 11,202,186 - - - - 11,202,186 NET POSITION Restricted for: Individuals, Organizations, and Other Governments -$ 245,382$ -$ 1,162,252$ -$ 1,407,634$ Page 130 of 201 SCHEDULE E-2 ST. CROIX COUNTY, WISCONSIN COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION CUSTODIAL FUNDS YEAR ENDED DECEMBER 31, 2025 (91) Permitting Register and Platting Tax Agency Sheriff of Deeds Clerk of Courts Escrow Total ADDITIONS Contributions: Individuals -$ 1,304,698$ -$ -$ -$ 1,304,698$ Property Tax Collections for Other Governments 68,849,358 - - - - 68,849,358 Fines and Forfeitures - - - 3,320,048 - 3,320,048 License and Fees Collected for State - - 1,016,399 - - 1,016,399 Total Additions 68,849,358 1,304,698 1,016,399 3,320,048 - 74,490,503 DEDUCTIONS Payments of Property Tax to Other Governments 68,849,358 1,296,824 - - - 70,146,182 Payments to Other Governments - - - 3,205,137 - 3,205,137 Distribution to Participants - - 1,016,399 - - 1,016,399 Total Deductions 68,849,358 1,296,824 1,016,399 3,205,137 - 74,367,718 NET INCREASE IN FIDUCIARY NET POSITION - 7,874 - 114,911 - 122,785 Fiduciary Net Position - Beginning of Year - 237,508 - 1,047,341 - 1,284,849 FIDUCIARY NET POSITION - END OF YEAR -$ 245,382$ -$ 1,162,252$ -$ 1,407,634$ Page 131 of 201 OTHER REPORTS Page 132 of 201 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.  CliftonLarsonAllen LLP  CLAconnect.com  (92) INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITHGOVERNMENT AUDITING STANDARDS Honorable Members of the County Board of Supervisors St. Croix County, Wisconsin Hudson, Wisconsin We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of St. Croix County, Wisconsin, Wisconsin, (the County) as of and for the year ended December 31, 2025, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements and have issued our report thereon dated July 17, 2026. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the County’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County’s internal control. Accordingly, we do not express an opinion on the effectiveness of the County’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the County’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Page 133 of 201 Honorable Members of the County Board of Supervisors St. Croix County, Wisconsin (93) Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified certain deficiencies in internal control, described in the accompanying schedule of findings and responses listed as items 2025-001 through 2025-002, that we consider to be material weaknesses. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the County’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. St. Croix County, Wisconsin’s Response to Findings Government Auditing Standards requires the auditor to perform limited procedures on the County’s response to the findings identified in our audit and described in the accompanying schedule of findings and responses. The County’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the County’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Hudson, Wisconsin July 17, 2026 Page 134 of 201 ST. CROIX COUNTY, WISCONSIN, WISCONSIN SCHEDULE OF FINDINGS AND RESPONSES YEAR ENDED DECEMBER 31, 2025 (94) FINDING: 2025-001 Material Audit Adjustments, Material Weakness Criteria: The County should have controls in place to prevent or detect a material misstatement in the financial statements in a timely manner. Condition: The audit firm proposed, and the County posted to its general ledger accounts, journal entries for correcting certain misstatements. These adjustments were considered to be material for the fair presentation of the financial statements. Cause: The County has not established controls to ensure that all accounts are adjusted to their appropriate year-end balances in accordance with GAAP. Effect: The potential exists that financial statements of the County may include inaccurate information not detected or prevented by County staff. Repeat Finding: Yes 2024-001. Recommendation: The County should continue to evaluate its internal control processes to determine if additional internal control procedures should be implemented to ensure that accounts are adjusted to their appropriate year-end balances in accordance with GAAP. Management’s Response The County agrees with the finding and will continue to rely upon the audit firm to propose audit adjustments necessary to adjust accounts in accordance with GAAP. Management will review and approve these entries prior to recording them. The Finance Director is the official responsible for ensuring corrective action of the deficiency. The County has informed us that they will review adjustments proposed by the auditors and will endeavor to minimize the number and amount of proposed adjustments in future audits, but will continue to rely upon the audit firm to propose such audit adjustments as are necessary to adjust accounts in accordance with accounting principles generally accepted in the United States of America (GAAP). Management will review and approve those entries prior to recording them. Page 135 of 201 ST. CROIX COUNTY, WISCONSIN, WISCONSIN SCHEDULE OF FINDINGS AND RESPONSES YEAR ENDED DECEMBER 31, 2025 (95) FINDING: 2025-002 Limited Segregation of Duties, Material Weakness Criteria: Generally, a system of internal control contemplates separation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. Condition: In certain County offices (i.e. register of probate, zoning, and aging). the available staff precludes a proper separation of duties to assure adequate internal control. Cause: The limited size of the County’s staff responsible for accounting and financial reporting functions precludes a complete segregation of incompatible duties. Effect: The potential exists, due to the lack of segregation of duties, that a financial statement misstatement or misappropriation of assets caused by error or fraud may not be detected or prevented by County staff. Repeat Finding: Yes 2024-002. Recommendation: The County should continue to evaluate its staffing in order to segregate incompatible duties whenever possible. Management’s Response: The County agrees with this finding and continues to achieve segregation of duties whenever cost effective. The Finance Director is the official responsible for ensuring corrective action of the deficiency. The limited segregation of duties condition is applicable to the receipting, disbursement and journal entry transaction cycles as well as financial reporting functions of the County. Page 136 of 201   Page 137 of 201 County Administrator's Financial Report June 2026 FY25 FY25 FY26 FY26 Percent Total Thru June Budget YTD Balance Remaining REVENUES Administrative Revenues 110: General 0000: Default 3,280,115 -2,156,616 0 -2,985,330 2,985,330 320,547,329,28 9,486,460.00% 110: General 1010: Unallocated 0 - 0 - - - 110: General 1110: County Board & Committees/Commissions 155,935 77,967 192,946 96,473 96,473 50.00% 110: General 1320: Corporation Counsel 961,625 479,767 1,370,623 511,161 859,463 62.71% 110: General 1410: Administrator 519,478 259,781 536,781 268,255 268,526 50.03% 110: General 1420: County Clerk 424,863 208,346 452,135 219,487 232,647 51.46% 110: General 1430: Human Resources 621,340 310,670 658,967 329,484 329,483 50.00% 110: General 1440: Elections 85,647 29,525 109,500 66,163 43,337 39.58% 110: General 1450: Information Technology 2,826,077 1,356,274 2,895,192 1,499,900 1,395,292 48.19% 110: General 1510: Finance 675,808 338,181 726,195 361,129 365,067 50.27% 110: General 1520: County Treasurer 619,704 302,838 475,046 281,257 193,789 40.79% 110: General 1610: Facilities 2,482,315 1,148,043 2,271,706 1,125,542 1,146,164 50.45% 110: General 5110: Library 1,869,030 934,515 2,059,189 1,029,594 1,029,595 50.00% 295: Dog License All Cost Centers 21,408 15,411 20,000 14,209 5,791 28.96% Debt Service Funds All Cost Centers 11,573,008 5,603,886 11,335,121 5,517,560 5,817,561 51.32% Internal Service Funds All Cost Centers 15,709,465 6,580,368 15,415,000 7,678,692 7,736,308 50.19% Administrative Revenues 41,825,817 15,488,956 38,518,400 16,013,575 22,504,824 58.43% EXPENSES Administrative Expenses 110: General 1010: Unallocated 4,000,000 - 0 - - - 110: General 1110: County Board & Committees/Commissions 121,063 67,034 192,946 80,651 112,295 58.20% 110: General 1320: Corporation Counsel 960,595 419,925 1,370,623 453,455 917,169 66.92% 110: General 1410: Administrator 474,788 218,404 536,781 190,592 346,189 64.49% 110: General 1420: County Clerk 391,298 181,957 452,135 193,849 258,285 57.13% 110: General 1430: Human Resources 606,138 362,824 658,967 186,578 472,389 71.69% 110: General 1440: Elections 55,464 53,493 109,500 54,914 54,586 49.85% 110: General 1450: Information Technology 2,771,056 1,550,577 2,895,192 1,560,798 1,334,394 46.09% 110: General 1510: Finance 669,645 319,085 726,195 228,228 497,967 68.57% 110: General 1520: County Treasurer 469,555 224,868 475,046 244,175 230,871 48.60% 110: General 1610: Facilities 2,368,140 1,016,606 2,271,706 1,069,479 1,202,226 52.92% 110: General 5110: Library 1,843,915 1,843,915 2,059,189 2,059,189 0 0.00% 295: Dog License All Cost Centers 18,898 14,433 20,000 13,905 6,095 30.47% Debt Service Funds All Cost Centers 10,947,407 9,003,839 11,335,121 9,522,995 1,812,126 15.99% Internal Service Funds All Cost Centers 14,645,818 6,484,308 15,415,000 6,311,277 9,103,723 59.06% Administrative Expenses 40,343,780 21,761,269 38,518,400 22,170,085 16,348,314 42.44% Report Total 1,482,037 -6,272,313 0 -6,156,510 - - Print Date July 28, 2026 Page 138 of 201 0000 - Default : Department Overview FY24 FY25 Prior Year FY26 FY26 Actual Actual June Operating Budget June Balance Percent Final Final YTD Adopted YTD Remaining Remaining 41110: General Property Taxes (14,396,730) (16,347,330) (8,173,665) (17,282,443) (8,641,221) (8,641,222) 50.00% 41120: Tax Increments 250,173 26,152 - - - - - 41150: Forest Cropland/Managed Forest Taxes 22,134 21,424 20,885 15,878 23,735 (7,857) -49.48% 41220: General Sales and Retailers' Discount 12,527,814 13,190,430 3,628,152 13,797,187 4,118,379 9,678,808 70.15% 43410: State Shared Revenues 1,328,147 1,360,579 - 1,395,542 - 1,395,542 100.00% 43430: Other State Shared Taxes 110,222 112,274 59,457 107,930 50,628 57,302 53.09% 43510: State General Government Grant 150,319 422,454 422,454 422,454 422,454 - - 48110: Interest Revenue 4,386,531 4,483,184 1,877,330 1,543,452 1,040,696 502,756 32.57% 48210: Rent Revenue 17,371 10,234 8,772 - - - - 48610: Miscellaneous Revenue - 715 - - - - - 49210: Transfer from General Fund - 500,000 - - - - - Total Revenues 4,395,981 3,780,115 (2,156,616) - (2,985,330) 2,985,330 320,547,329,289,486,460.00% Total Wages - - - - - - - Total Fringes - - - - - - - Net Wage & Fringe - - - - - - - Operating - - - - - - - Report Total 4,395,981 3,780,115 (2,156,616) - (2,985,330) - - Print Date July 28, 2026 Page 139 of 201 1110 - County Board & Committees/Commissions : Department Overview FY24 FY25 Prior Year FY26 FY26 Actual Actual June Operating Budget June Balance Percent Final Final YTD Adopted YTD Remaining Remaining 41110: General Property Taxes 161,749 155,935 77,967 192,946 96,473 96,473 50.00% 43310: Other Federal Payment 25,431 - - - - - - Total Revenues 187,180 155,935 77,967 192,946 96,473 96,473 50.00% Total Wages 16,671 14,711 6,926 23,556 7,931 15,625 66.33% Total Fringes 59,083 50,991 23,856 102,139 27,153 74,985 73.42% Net Wage & Fringe 75,754 65,702 30,782 125,695 35,084 90,611 72.09% 51910: Staff Development 3,742 4,149 1,371 4,000 651 3,349 83.73% 52190: Other Professional Services 236 20 20 240 20 220 91.67% 52250: Cellular Phone Service 542 542 244 600 136 464 77.28% 53110: Postage 1,020 758 341 1,020 1 1,019 99.93% 53130: Managed Print Costs - IT 252 267 45 900 541 359 39.94% 53190: Office Supplies 200 - - 1,000 4,697 (3,697) 369.66% 53210: Publications & Printing 1,861 2,333 436 2,500 446 2,054 82.18% 53230: Subscriptions - - - 300 - 300 100.00% 53240: Dues & Licenses 1,569 12,881 11,312 15,646 14,077 1,569 10.03% 53250: Software Subscriptions & Renewals 47,427 15,192 15,192 20,000 18,363 1,637 8.18% 53310: Employee Mileage 12,612 11,750 5,202 14,000 4,159 9,841 70.29% 53320: Employee Lodging 4,672 4,452 1,588 3,000 866 2,134 71.13% 53330: Employee Meal Expense - - - 200 - 200 100.00% 53430: Provided Food Expense 3,537 2,044 502 3,000 766 2,234 74.47% 55180: Liability Insurance 859 974 - 845 845 - - Operating 78,529 55,361 36,252 67,251 45,567 21,684 32.24% Total Expenses 154,284 121,063 67,034 192,946 80,651 112,295 58.20% Report Total 32,896 34,872 10,933 - 15,822 - - Print Date July 28, 2026 Page 140 of 201 1320 - Corporation Counsel : Department Overview FY24 FY25 Prior Year FY26 FY26 Actual Actual June Operating Budget June Balance Percent Final Final YTD Adopted YTD Remaining Remaining 41110: General Property Taxes 809,944 955,917 477,959 1,016,123 508,062 508,062 50.00% 46135: Corporation Counsel Fees 4,200 5,708 1,808 4,500 3,099 1,401 31.13% 49310: Fund Balance Applied - - - 350,000 - 350,000 100.00% Total Revenues 814,144 961,625 479,767 1,370,623 511,161 859,463 62.71% Total Wages 599,395 689,249 291,445 726,318 299,042 427,277 58.83% Total Fringes 206,898 253,895 120,579 281,554 118,909 162,645 57.77% 51599: Interdepartmental Wage & Fringe 46,224 31,011 9,899 34,611 21,301 13,310 38.46% Net Wage & Fringe 760,069 912,133 402,125 973,261 396,649 576,612 59.25% 51910: Staff Development 2,005 1,017 808 2,000 354 1,646 82.30% 52117: Legal Services 3,759 19,860 406 352,000 19,454 332,546 94.47% 52140: Civil Process/Paper Fees - 179 - - 240 (240) - 52150: Transcription Services 149 297 297 300 - 300 100.00% 52250: Cellular Phone Service 488 540 266 580 275 305 52.64% 53110: Postage 1,767 1,454 689 1,600 550 1,050 65.60% 53120: Copy Expense 9 65 65 - - - - 53130: Managed Print Costs - IT 961 1,168 529 1,200 679 521 43.39% 53140: Tax Deed & Title Services Expense - 30 30 90 - 90 100.00% 53190: Office Supplies 386 321 141 500 156 344 68.75% 53211: Law Book Publications 4,677 5,212 2,726 5,000 2,173 2,827 56.54% 53240: Dues & Licenses 2,290 2,807 2,807 2,807 2,846 (39) 1.39% 53250: Software Subscriptions & Renewals 12,419 7,891 7,839 25,000 25,540 (540) 2.16% 53310: Employee Mileage 1,420 1,864 483 1,400 357 1,043 74.52% 53320: Employee Lodging 262 663 - 500 202 298 59.60% 53330: Employee Meal Expense 361 656 244 500 75 425 85.00% 53350: Employee Other Expenses 20 - - - 18 (18) - 53440: Operating Supplies 12 - - - - - - 53910: Other Supplies and Expenses 8 46 - - - - - 53930: Software Purchased 2,454 357 357 - - - - 53940: Equipment Purchased - Non Fixed Asset 280 381 54 - - - - 55180: Liability Insurance 3,471 3,594 - 3,885 3,885 - - 55210: Premiums on Surety Bonds 100 60 60 - - - - Print Date July 28, 2026 Page 141 of 201 1320 - Corporation Counsel : Department Overview FY24 FY25 Prior Year FY26 FY26 Actual Actual June Operating Budget June Balance Percent Final Final YTD Adopted YTD Remaining Remaining Operating 37,298 48,462 17,800 397,362 56,805 340,557 85.70% Total Expenses 797,367 960,595 419,925 1,370,623 453,455 917,169 66.92% Report Total 16,777 1,030 59,841 - 57,706 - - Print Date July 28, 2026 Page 142 of 201 1410 - Administrator : Department Overview FY24 FY25 Prior Year FY26 FY26 Actual Actual June Operating Budget June Balance Percent Final Final YTD Adopted YTD Remaining Remaining 41110: General Property Taxes 541,156 518,988 259,494 536,281 268,140 268,140 50.00% 43510: State General Government Grant 18,337 - - - - - - 48510: Donations & Contributions 501 490 287 500 115 385 77.09% Total Revenues 559,995 519,478 259,781 536,781 268,255 268,526 50.03% Total Wages 343,775 355,119 148,563 379,128 159,418 219,710 57.95% Total Fringes 105,648 113,285 53,504 123,630 56,237 67,393 54.51% 51599: Interdepartmental Wage & Fringe 43,197 45,499 - 47,368 47,368 - - Net Wage & Fringe 406,227 422,905 202,067 455,390 168,287 287,103 63.05% 51910: Staff Development 1,084 1,250 200 1,500 260 1,240 82.67% 52190: Other Professional Services 15,314 3,337 - 15,000 - 15,000 100.00% 52250: Cellular Phone Service 1,143 1,143 518 1,200 519 681 56.71% 52990: Other Contractual Services - 387 - - - - - 53110: Postage 13 9 7 25 1 24 94.72% 53120: Copy Expense 1 - - - - - - 53130: Managed Print Costs - IT 1,433 1,095 181 1,500 528 972 64.82% 53190: Office Supplies 2,012 1,297 513 2,000 817 1,183 59.15% 53212: Outreach/Education 245 82 - 250 - 250 100.00% 53220: Advertising/Promotion 22,242 17,971 10,603 25,000 11,391 13,609 54.44% 53240: Dues & Licenses 1,463 1,501 1,200 1,500 1,200 300 20.00% 53250: Software Subscriptions & Renewals 5,879 6,243 2,515 10,000 154 9,846 98.46% 53310: Employee Mileage 1,334 2,465 1,177 1,750 988 762 43.53% 53320: Employee Lodging 1,116 2,282 933 1,250 - 1,250 100.00% 53330: Employee Meal Expense 352 458 80 500 101 399 79.80% 53340: Employee Airfare 379 874 - 500 - 500 100.00% 53350: Employee Other Expenses 274 163 - 1,000 - 1,000 100.00% 53430: Provided Food Expense - 200 200 150 - 150 100.00% 53440: Operating Supplies 28 51 - 100 - 100 100.00% 53910: Other Supplies and Expenses 10,888 8,528 (1,822) 15,000 3,134 11,866 79.11% 53995: Vehicle Operating Expenses - 42 32 - 45 (45) - 55180: Liability Insurance 2,116 2,506 - 3,166 3,167 (1) 0.03% Operating 67,316 51,883 16,337 81,391 22,305 59,086 72.60% Print Date July 28, 2026 Page 143 of 201 1410 - Administrator : Department Overview FY24 FY25 Prior Year FY26 FY26 Actual Actual June Operating Budget June Balance Percent Final Final YTD Adopted YTD Remaining Remaining Total Expenses 473,543 474,788 218,404 536,781 190,592 346,189 64.49% Report Total 86,452 44,690 41,376 - 77,663 - - Print Date July 28, 2026 Page 144 of 201 1420 - County Clerk : Department Overview FY24 FY25 Prior Year FY26 FY26 Actual Actual June Operating Budget June Balance Percent Final Final YTD Adopted YTD Remaining Remaining 41110: General Property Taxes 219,406 237,353 118,677 267,135 133,568 133,567 50.00% 46110: Clerk's Fees 177,753 187,510 89,670 185,000 85,920 99,080 53.56% Total Revenues 397,159 424,863 208,346 452,135 219,487 232,647 51.46% Total Wages 243,242 238,402 112,754 276,511 117,949 158,563 57.34% Total Fringes 113,753 118,969 58,004 149,119 61,265 87,855 58.92% Net Wage & Fringe 356,996 357,371 170,758 425,631 179,213 246,417 57.89% 51910: Staff Development - 105 105 250 - 250 100.00% 52122: Interpreter Services - 67 15 500 50 450 89.92% 52190: Other Professional Services 30 945 683 50 - 50 100.00% 52440: Misc. Repair & Maintenance - 17 17 1,000 - 1,000 100.00% 52920: Computer Repair - 14 14 - - - - 53110: Postage 6,581 18,100 3,268 7,000 4,224 2,776 39.65% 53130: Managed Print Costs - IT 2,323 2,785 1,651 3,200 785 2,415 75.47% 53190: Office Supplies 3,014 2,627 1,163 2,500 1,149 1,351 54.05% 53210: Publications & Printing 1,465 1,006 757 1,000 1,132 (132) 13.20% 53230: Subscriptions 180 125 125 130 146 (16) 12.31% 53240: Dues & Licenses 250 - - 175 175 - - 53250: Software Subscriptions & Renewals 333 147 147 150 154 (4) 2.90% 53310: Employee Mileage - - - 250 - 250 100.00% 53320: Employee Lodging - 252 - 500 - 500 100.00% 53330: Employee Meal Expense - - - 250 - 250 100.00% 53350: Employee Other Expenses - - - 100 - 100 100.00% 53420: Medical Supplies - 74 - - - - - 53430: Provided Food Expense 95 - - - - - - 53440: Operating Supplies 5,494 5,369 3,024 7,000 4,571 2,429 34.70% 53910: Other Supplies and Expenses - 95 21 - - - - 53920: Cell Phones & Accessories 166 - - - - - - 53930: Software Purchased - 209 209 200 - 200 100.00% 55180: Liability Insurance 1,839 1,989 - 2,249 2,249 - - Operating 21,770 33,927 11,199 26,504 14,636 11,868 44.78% Total Expenses 378,765 391,298 181,957 452,135 193,849 258,285 57.13% Print Date July 28, 2026 Page 145 of 201 1420 - County Clerk : Department Overview FY24 FY25 Prior Year FY26 FY26 Actual Actual June Operating Budget June Balance Percent Final Final YTD Adopted YTD Remaining Remaining Report Total 18,394 33,565 26,389 - 25,638 - - Print Date July 28, 2026 Page 146 of 201 1430 - Human Resources : Department Overview FY24 FY25 Prior Year FY26 FY26 Actual Actual June Operating Budget June Balance Percent Final Final YTD Adopted YTD Remaining Remaining 41110: General Property Taxes 551,792 621,340 310,670 658,967 329,484 329,483 50.00% Total Revenues 551,792 621,340 310,670 658,967 329,484 329,483 50.00% Total Wages 430,617 521,590 222,714 559,131 235,021 324,110 57.97% Total Fringes 106,429 148,257 68,332 179,679 72,116 107,563 59.86% 51599: Interdepartmental Wage & Fringe 127,751 158,471 - 170,659 170,659 - - Net Wage & Fringe 409,294 511,376 291,046 568,151 136,478 431,673 75.98% 51910: Staff Development 1,154 1,438 1,018 6,000 509 5,491 91.52% 52116: Consultant Fees - - - 1,000 - 1,000 100.00% 52125: Purchased Services 12,400 53,418 45,513 39,000 29,597 9,404 24.11% 52190: Other Professional Services 14,853 18,626 15,223 13,500 6,878 6,622 49.05% 52250: Cellular Phone Service 495 549 274 600 275 325 54.20% 52990: Other Contractual Services 11,575 10,799 4,675 13,700 5,856 7,844 57.25% 53110: Postage 141 158 100 250 34 216 86.29% 53130: Managed Print Costs - IT 315 323 136 500 462 38 7.52% 53190: Office Supplies 253 82 82 400 80 320 79.88% 53220: Advertising/Promotion 182 124 124 1,000 - 1,000 100.00% 53230: Subscriptions 424 - - 500 - 500 100.00% 53240: Dues & Licenses 1,263 - - 1,000 218 782 78.20% 53250: Software Subscriptions & Renewals 2,674 3,209 2,976 3,800 1,872 1,928 50.74% 53310: Employee Mileage 85 783 454 750 196 554 73.92% 53320: Employee Lodging - 232 232 1,000 196 804 80.40% 53330: Employee Meal Expense - 67 67 250 56 194 77.60% 53340: Employee Airfare - - - 750 - 750 100.00% 53350: Employee Other Expenses 112 - - 750 40 710 94.67% 53430: Provided Food Expense - - - - 55 (55) - 53440: Operating Supplies 67 1,997 904 1,000 82 918 91.78% 53910: Other Supplies and Expenses 481 - - 500 223 277 55.44% 53940: Equipment Purchased - Non Fixed Asset 2,583 - - 1,500 405 1,095 73.00% 55180: Liability Insurance 2,698 2,957 - 3,066 3,066 - - Operating 51,755 94,762 71,778 90,816 50,100 40,716 44.83% Total Expenses 461,049 606,138 362,824 658,967 186,578 472,389 71.69% Print Date July 28, 2026 Page 147 of 201 1430 - Human Resources : Department Overview FY24 FY25 Prior Year FY26 FY26 Actual Actual June Operating Budget J