Cadott Village Board; Go-ahead given for finance plan

Brian Reilly, Ehlers, shared a proposed financial plan with the Cadott Village Board, during a regular meeting July 5. Board members voted to pursue the plan, with Ehlers slated to bring numbers to the next meeting, for the board to consider. Photo by Julia Wolf

By Julia Wolf

The Cadott Village Board decided on the next steps, after hearing financial information and recommendations from Ehlers, during a regular meeting July 5.

Brian Reilly, Ehlers, says, when it comes to boosting the village’s unassigned General Fund balance, his recommendation is to reimburse themselves for larger purchases, with a loan, adding debt is a tool in the toolbox.

“Used appropriately, there is nothing inherently wrong,” said Reilly.

He says they can go back farther in time than they already have, to look for reimbursable purchases, but isn’t sure that is necessary. One purchase they found, was the acquisition of a public works truck. Reilly says they can borrow for that purchase they already made.

“That should put you in a better cash position,” said Reilly, adding that would be an infusion of nearly $50,000.

He says the village does not want a longer loan that the useful life of the truck. Board members said it is probably best to base the numbers on a five-year useful life. Reilly says bank financing for the situation is rather simple and there are canned documents available, but says accessing the State Trust Fund Loan Program is also an option.

Reilly also reminded the board that the purpose of refinancing the village’s 2015 general obligation bonds to an electric utility revenue obligation, is to free up the general obligation borrowing capacity, and not necessarily for savings.

They also looked over upcoming projects, including the Brown Street project and the State Hwy. 27 project. Reilly says the State Hwy. 27 project is TID (Tax Increment District) No. 5 eligible and reminded everyone there is some previously borrowed money available for the project.

“The hope is, that you never levy taxes...to pay that debt back,” said Reilly.

Since there are also sewer and water elements to the project, the village could also turn to those utilities for help on their proportionate share, if TIF revenue is insufficient.

“The TIF district will pay back the utilities and the General Fund, at some point, when it has positive revenue,” said Reilly.

Reilly says the Brown Street project is a General Fund expense, with street and storm water elements.

He says the State Trust might be the best option for the village for the street projects. Reilly says the State Trust Fund Program offers long-term, fixed-rate loans and also has prepayment options.

Board members voted to move forward and see the numbers for the finance plan presented by Reilly, at the next meeting.

The discussion on a sewer rate increase was tabled, until a formal proposal is brought before the board.

Resident Rolly Tichy also made and donated a frame for a United States flag, displayed in the village office.

“Very appreciated,” said Les Liptak. A few village board members agreed to try to join the library board in touring other potential library sites.

Board member Eric Weiland, who is also a firefighter, also reported that the big brush pile at the yard waste site started on fire and the fire department was called to the site, July 3.

“It’s a pile that usually gets burnt anyway,” said Weiland. However, the pile was large, close to the edge of the woods and beginning to start the woods on fire. An excavator was called in to move the brush pile farther from the grass, so Weiland said the village will likely receive a bill for that.

He says they need to look at how the site is set up, to prevent something similar from happening in the future.