Lake St. Croix Beach officials reported a $178,197 property tax shortfall spanning three years due to incorrect levy reporting.

The discrepancy went uncorrected from 2023 through 2025 before being disclosed to

residents.

The situation has raised questions about oversight, internal controls, and the timing of disclosure.

Overview

According to reporting by the Pioneer Press, Lake St. Croix Beach experienced a property tax shortfall totaling $178,197 over a three-year period due to an accounting error.

The issue was tied to incorrect handling of fiscal-disparity tax calculations beginning in 2023.

Details of the Shortfall

City officials indicated that incorrect information was submitted by a contract accountant, resulting in reduced tax levies.

The reported shortfalls were:

• 2023: approximately $70,000

• 2024: $51,215

• 2025: $57,214

In total, nearly $180,000 in expected revenue was not collected over three consecutive years.

Financial Impact

City officials stated that operations continued without disruption, with funds drawn from reserves to cover the gap.

Future levies may be adjusted to address the shortfall.

Potential Legal Action

The City Council entered a closed session to discuss potential litigation related to the matter.

Details were not disclosed due to possible pending legal action.

Resident Response

A group of Lake St. Croix Beach residents has obtained signatures from approximately 20 percent of the city’s voters in the last presidential election to request a review by the Office of the State Auditor.

According to reporting, residents expressed concern not only about the error itself, but about how long it went uncorrected and when it was disclosed publicly.

“We are concerned about the repetitive errors that have been made,” one resident stated. “They didn’t let anyone know that there was a shortfall when it was confirmed in early 2024. We are worried about the lack of transparency.”

The Auditor’s Office is expected to review the request and determine whether to examine the city’s financial records.

Key Questions

This situation raises several questions:

• When was the discrepancy first identified internally?

• What review processes were in place during the three-year period?

• Why was the issue not publicly addressed earlier?

• What changes have been implemented to prevent recurrence?

• When was the shortfall first confirmed internally, and when was it communicated to residents?

Why This Matters

Tax levies and financial reporting directly affect residents.

Consistency, internal controls, and timely disclosure are central to maintaining public trust in how local government operates.

Source

Pioneer Press — September 2, 2025

Notes

This post summarizes publicly reported information and will be updated as additional records or findings become available.