Cadott Village Board; Resolution frees up borrowing capacity

By Julia Wolf

The Cadott Village Board took steps to free up the borrowing capacity for other projects, by moving forward on a resolution that would allow refunding bonds, during a regular meeting May 15.

Josh Low, Ehlers, says those projects in the future, such as streets, are going to need to be issued on a general obligation basis.

“Meaning that they are backed by a pledge of your property taxes,” said Low.

He says Wisconsin limits the amount of general obligation borrowing a municipality can do, to 5 percent of the equalized value. Low says the electric revenue debt, issued on a general obligation basis, is one of the main things currently holding up the village’s borrowing capacity.

“So, what we’re proposing to do with this issue, is take that general obligation pledge and refinance that with a revenue-based pledge, that commits the revenues of the utility, the electric utility, to pay back the debt,” said Low.

That way, the village has “space” to do those future projects. Low says they are not extending the debt or getting savings from it, and are really just transitioning it from general obligation to electric revenues.

Low says it will not affect the electric rates. “You’re taking in plenty of revenues, with your current revenues, to pay this debt,” said Low.

Brian Reilly, Ehlers, says even if the future projects are grant funded, the village will still have to float some costs for a while.

“Your general obligation is the best tool to be able to do that,” said Reilly.

Reilly showed the board a resolution that would set the parameters of the bond sale, such as a not to exceed principal amount and a not to exceed interest rate. He says, if the sale does not fall within the parameters, they won’t do the bond sale that day, and would be in communication with the village.

Board members passed the resolution authorizing issuance and setting parameters for the sale, during the meeting.

A resolution approving the Annual Compliance Maintenance Report was also passed.

“Looks like you are doing a good job,” said Kuehni. “Any worries we should have?”

Chad Schuebel, lead water/wastewater operator, says there shouldn’t be worries, but that the price of everything is going up.

Schuebel also reported the good news that they completed the first round of PFAS testing on the wells and they all came back non-detectable.

“The first ones are all good,” said Schuebel. Board members also approved the purchase of safety equipment, a metal detector to locate shut-offs and a sewer camera. Jeremy Kenealy, director of public works, says they would like to use the recovery funds for the purchases.

“We’re limited in what we can use that for anyway,” said board member Bart Chapek, of the funds.

A driveway for Theresa Pozarski, Styles on Main, was also approved during the meeting.

“What I would like to do is remove the curb in front of the new salon and make that so that it comes up into a parking lot in front of the salon,” said Pozarski, adding she would like to get some of the traffic off the street and make it a little safer for everyone.

The plan is to start 10 feet off the lot line on the north side and go all the way to the lot line on the south side, since Pozarski also owns the lot to the south.

Chapek asked if there will be any division between the parking spaces for the salon and the driveway for the house to the south. Scott Pozarski says there will be some sort of division between the parking area and the driveway.

The village board also approved Tom Kucera as a new Board of Appeals member, after Tom Kyser stepped down from the position.

During public comment, residents asked if anything could be done to increase the safety in the alley on the 300 Block, between Main Street and Maple Street. They said people drive through very fast and it is dangerous for their families. Board members said they would look into what they can do for speed limit signage and ask for more police patrols through that area.

Kuehni also reported Kucera also made a formal offer to donate a vacant lot on Main Street to the library, if they want it. The library board and their engineers will discuss the option at their next meeting.