Sewer rates have to take a jump to get village out of financial hole

Village board also votes to create new mixed use Tax Incremental District wrapping around the village

At about $26,000 in the hole, Gilman’s sewer system is no longer paying for itself, which means rates have to go up to fund the utility service.

“The water entity has to support itself and the sewer entity has to support itself,” said trustee Cheryl Rosemeyer, at a regular Gilman Village Board meeting Sept. 13. “We had taken care of the water side and now, we have to take care of sewer.”

Now that the grocery store in Gilman is closed, as is the nursing home, and Gilman Cheese has refined how they clean up their BODs and suspended solids, the sewer is not holding its own. While that’s good for the business, it’s not so good for the village and there’s no longer any extra money to have available for wastewater treatment plant repairs.

“It dropped the revenue quite a bit,” said village treasurer Fran Prasnicki.

With that in mind, the board discussed raising the sewer rate (which hasn’t been done since 2011) by 5 or 10 percent. For the residential sewer usage, a 5 percent increase would drive the quarterly bill from $85.15 to $89.39, while a 10 percent increase would up the quarterly bill from $85.15 to $93.65 “This is just sewer now, not the water and whatever,” said Prasnicki.

Trustee Bob Preston asked which percent would solve the problem, but it was agreed that neither percent will and that the sewer rate formula needs to be redone.

“It’s a start,” said Prasnicki, adding that if the board raised it 10 percent now, down the road, when they likely have to raise it again, it won’t be such a big hit on the users’ bills at one time.

If a user goes through about 3,000 gallons a quarter, it would raise the bills $8.50.

“Really, that’s not a huge amount,” said trustee Ericka Bertsinger.

Members approved raising the sewer rate for the time being to a 10 percent increase, until an update can be made to the User Charge System. They also approved a quote from Morgan & Parmley, to update the village’s User Charge System, for a cost between $2,500 and $3,500.

Preston questioned if there are any other companies who could offer a competitive quote, but it was pointed out that Morgan & Parmley have all the records from the village, and the history of what was done in the past. If Gilman went with another company, they would have to start over and it would likely cost far more.

Also taken action on, was creating Tax Incremental Financing District (TID) No. 3. Previously discussed, the project plan, which may or not be undertaken over a 15-year period, is a mixed-use TID. That means it has a life of 20 years, with expenditures completed within 15 years; a mixed use is the only one that allows for construction of newly platted subdivisions.

“And, so, that’s why we’re looking at this as being a mixed-use TID district,” said Dave Rasmussen, MSA.

When putting the TID together, Rasmussen tried to be general, since, a few years down the road, the village could amend the project plan and go forward with some new project.

Through a TID, all taxing jurisdictions get value off the base value, while increased value over the base is considered value increment.

“You pay the same amount of taxes on that as you normally would, but, instead of that being distributed to all the taxing jurisdictions…those tax dollars are retained by the village and they can invest into projects,” said Rasmussen.

The 14 projects outlined in the new TID are estimated to cost $1.6 million to complete, but not more than 35 percent of the land area can be for new subdivisions, so after the Joint Review Board Oct. 3, the TIF may have some changes, if the assessed value is over the acceptable limit to establish a TID.

Projects range from building improvements, to park and trail improvements, to sanitary sewer improvements, utilities and more.

“Again, you may or may not do all of those projects,” said Rasmussen.

Rasmussen admitted Gilman probably won’t do all of those projects, but wanted to list them in there, so that if they do come up, an amendment can be added.

After some concerns were voiced over the value of the school district going up, Rasmussen shared that the school aid goes down, but if there’s a TID within the school district, the state doesn’t count that increased value.

“So, you shouldn’t see any decrease in that school aid,” he said.

Once that TID closes, the school aid will change. There is someone who stated an interest in creating twin homes in the western area of the village, so a TID is of great value for development reasons.

“He was happy to hear that we were creating a taxing district, because that will greatly benefit him, if he is able,” said village president Jane DeStaercke.

With that in mind, members approved Resolution 2023-6, to create the TID.

The board also retained the service of assessor Bob Prokup, for 2024, at a cost of $4,300, to assess property within the village.

It was also brought up the wedge-shaped parcel on State Hwy. 64 the village discussed selling, is not zoned commercial, but is R-1 Single Family. They would need to rezone if they’re going to sell it for development.

“Do we have to worry about that before a possible sale comes up?” asked Preston.

Village clerk Candice Grunseth said it would save time, but that it can wait, although it would make sense to start the process now.

Russell Baker, village trustee, wanted to make sure it was strictly village zoning, and did not involve state or county, and Grunseth confirmed that was correct “Don’t you think maybe we should just get on it?” said trustee Dee Bornheimer.

Trustees will have to decide what zoning is appropriate and to help with that, zoning administrator Jim Flood provided some information and suggestions.

Grunseth also reported that the village is working on a specific emergency plan.

“These are all things we need for USDA,” she said. In addition, four or five years ago, the DNR informed the village they needed everything mapped out, such as hydrant locations, flushing dates, etc.

“I am just learning of that,” said Grunseth. Since that’s a big job and Grunseth is not sure how time consuming it will be to complete, she asked the Great Lakes Community Action Partnership to see if they can secure a grant to help offset the cost of mapping the village.

It was also noted that clean-up day for the village is set for Monday, Oct. 9, for curbside pick-up of bulk items.

And even though it’s quite some time out, there will also be a charette, which is a community meeting, of anyone living or working within the school district boundaries, to spur ideas of development interest. That will take place Friday, March 22, with someone present from the UW-Extension out of Taylor County. The Extension will bring in partners, such as engineers and architects, for a tour of Gilman, to see what free services they can suggest or provide, for community improvement.

“It’s kind of an exciting concept,” said DeStaercke.