Shelby County’s overall financial position improves in 2025

SHELBY COUNTY Shelby County ended the 2025 fiscal year with an increase in its overall financial position, according to the county’s annual audit completed by Gronewold, Bell, Kyhnn & Co. P.C.
The audit, which covers the fiscal year ending June 30, 2025, shows the county’s net position increased by approximately $372,000, or 1.1%, from $33.86 million in 2024 to $34.23 million in 2025.
The increase indicates an improvement in the county’s overall financial position, although total revenues declined during the year.
According to the audit, revenues for the county’s governmental activities decreased 9.1%, or approximately $1.94 million, compared to the previous fiscal year. Total revenues fell from approximately $21.23 million in 2024 to $19.30 million in 2025.
The largest factor contributing to the revenue decline was a significant decrease in capital grants, contributions and restricted interest, which dropped by approximately $3.92 million. Meanwhile, property and other county tax revenues increased by approximately $1.45 million, and operating grants and contributions increased by approximately $233,000.
The county’s total governmental expenses increased from approximately $16.23 million in 2024 to $18.93 million in 2025, an increase of approximately $2.7 million.
Major areas of county spending include public safety and legal services, physical health and social services, county environment and education, roads and transportation, governmental services, and administration.
The audit notes that taxpayers ultimately financed approximately $10.78 million of the county’s governmental activities after accounting for charges for services and grants and contributions from other governments and organizations.
Fund balances 
increase
Shelby County’s governmental funds reported a combined ending fund balance of approximately $8.12 million, an increase of nearly $1.59 million from the $6.53 million reported at the end of fiscal year 2024.
The General Fund, which serves as the county’s primary operating fund, ended the year with a balance of $2,398,782. That represents an increase of $1,605,799 from the previous fiscal year.
The Rural Services Fund also experienced an increase, ending fiscal year 2025 with $811,865, up from $606,299 in 2024.
The Secondary Roads Fund reported an ending balance of $3,428,651, a decrease of $89,183 compared to the previous year. The audit notes the county continues to pursue federal and state grants and shared funding opportunities, including Federal Emergency Management Agency (FEMA) and Emergency Watershed Protection (EWP) programs, to help offset maintenance costs for local taxpayers.
The EMS Operations Fund ended the fiscal year with a balance of $562,614, an increase of $249,296 from the previous year.
Budget and spending
The county amended its budget once during fiscal year 2025, making the change in June 2025 to provide for additional expenditures in several county departments.
The total budget amendment was $314,811. The largest increases included $144,000 for public safety and legal services, $111,548 for administration, $29,500 for roads and transportation, and $21,063 for capital projects.
The county reported total receipts of $19,014,365, which were $21,779 more than budgeted.
Total disbursements were $17,020,259, or $2,375,617 less than budgeted.
However, the audit identified one budget-related finding. Disbursements in the county environment and education function exceeded the budgeted amount, and expenditures in certain departments exceeded their appropriations.
Auditors recommended the county amend its budget in accordance with Iowa Code before allowing expenditures to exceed approved amounts.
The county responded that it would amend the budget when necessary and monitor departmental appropriations more closely. The auditors accepted the response.
No major financial statement concerns reported
The audit did not identify any internal control deficiencies or instances of noncompliance related to the financial statements.
Auditors also reported no questionable expenditures, no county-paid travel expenses for spouses of county officials or employees, and no business transactions between the county and county officials.
The audit found the county complied with applicable requirements regarding deposits and investments, conservation funding, urban renewal reporting and tax increment financing.
One additional item noted in the report involved a $25,000 payment made by the county to the Shelby County Chamber of Commerce & Industry for economic development. The county is providing oversight to ensure the funds are spent according to the agreements and that the expenses meet public-purpose requirements.