Cadott Village Board; Financial plan, sewer rates, continue forward
Kelly Lee (left) and Eugene Anderson talked about the plans they would like to bring to fruition, in the next few months, to reopen the Cadott bakery, under a new name. They shared their plan with the Cadott Village Board July 17, during a regular meeting, and the board members welcomed the duo and wished them luck.
By Julia Wolf
The Cadott Village Board continued efforts to solidify their financial plan, during a regular meeting July 17, giving Ehlers permission to continue moving forward with the recommended steps.
Brian Reilly, Ehlers, started by going over the recommendations, with tweaks from feedback he received at the previous meeting. Those recommendations included the village reimbursing themselves for the cost of a public works truck with a bank loan, to help the General Fund’s unassigned fund balance, and going through the State Trust Fund Loan Program for two separate loans for the Brown Street and State Hwy. 27 project costs not covered by other means.
Reilly says the timing of when the State Trust Fund Loan would close, would also mean the village would not make their first payment until 2025.
“That’s just the way the program works,” said Reilly. The numbers Reilly presented also continued to work on the assumption that the village will refinance their 2015 general obligation bonds to electric utility revenue bonds, to help free up the village’s borrowing capacity for future projects.
“It’s prudent to free up that capacity to give you, at least the latitude, to make decisions,” said Reilly.
Reilly also shared how those recommended actions would impact the tax levy, using round numbers and holding the current value constant, and showed which other revenue sources will help support the debt, such as the electric, water and sewer utilities, and Tax Increment District (TIDs) No. 4 and No. 5.
“In 2023, you were at 51 cents, per thousand [of value], just to pay debt service,” said Reilly.
That would raise to an estimated 60 cents, per thousand, in 2024. In 2025, picking up the Brown Street project, it would go to 71 cents, per thousand.
“You want to produce enough revenue from TID No. 5 to pay the State Hwy. 27 project,” said Reilly. “This assumes that there is enough.”
He says a 2021 note issue would be retired in 2025, so the rates would drop back down after that.
“This is really meant to show you, what is the immediate impact of these decisions,” said Reilly.
Reilly asked for either board feedback on what they would like to see different or consent to continue moving forward with the recommendations.
“In August, then, there would be a number of resolutions,” said Reilly, on if the board moves forward.
See CADOTT VILLAGE BOARD / Page 3 Board members gave Reilly the go-ahead for the financial plan recommendations.
The board also discussed the sewer rate. Reilly says they are not at the point of suggesting a specific rate increase, but did bring a proposal to bring rates forward in the future. He says they would look not only at revenue sufficiency, but also repayment to the water utility and forward-looking analysis for perceived capital costs.
Board member Bart Chapek asked if the process is different than water rate increases. Reilly says it is similar, but water rates are regulated and must go through the Public Service Commission (PSC).
“You have latitude and discretion over sewer rates, but we would follow a very similar methodology,” said Reilly.
He says they would do a revenue forecast and break that down into some options on rate structures.
Village president Randy Kuehni says the biggest thing is, they don’t know what the PSC is going to want them to raise the water rates to and what the cost to customers will be. Reilly says they do have team members that do water rate increases, and offered to have them look at the public record information and give the board a rough estimate, to use for the sewer rate discussions.
“I get it,” said Reilly. “You’re making big decisions and they’re all happening, kind of, at the same time.”
Chapek said that rough estimate would be helpful. The village board voted to move forward with Ehler’s proposal to look into the sewer rates.
The board also approved a Transient Merchant Application for Billy Grzegorek to sell Kirby home cleaning systems. Board member Eric Weiland suggested they ask the police department to post a notification on social media that Grzegorek will be in town, so they do not get a bunch of calls from people wondering what is going on.
Board member Nicole Whipp-Sime also reported there was a Library Board meeting and said that board is considering increasing the size to seven people, instead of the five currently on the board.
“They are not sure they have the interest, but they’d like to pursue it,” said Sime.
Chapek asked why the Library Board is considering that. Sime said it is to help spread out the workload.
Board member Les Liptak asked if the foundational protocol of the Library Board allows the expansion. Sime says they believe it does, after looking into it.
Village board members decided the decision is up to the Library Board, as long as their charter allows it, so the item is not expected to be on an upcoming agenda.
“We’ve been informed,” said Liptak.