Cadott Village Board; Utilities draw board attention during financial review

The Cadott Village Board heard a review of the 2020 financial statements, during a regular meeting April 5.

Kim Shult, Baker Tilly, says they did the audit this year, with limited people on-site, because of COVID-19 protocols.

“I really appreciate the flexibility and the cooperation,” said Shult.

Shult started by looking at the balance of the general fund, with a five year comparison. She noted the 2020 fund balance was up from the prior year.

“So, that’s a really good thing,” said Shult.

Shult says the general fund has made advances to other funds, including TID #4, which she says is typical with the way TIDs are funded, and the sewer utility.

“The sewer utilities results really do impact the general fund,” said Shult.

She says the sewer utilities incurred an operating loss and says expenses were higher than previous years. Shult pointed out the cash flow from operations was not enough to pay the debt service. She says there were also some unexpected expenses, which influences the numbers, since rates are not set around unexpected costs.

Shult says, when thinking on rate increases, sewer is probably the most urgent of the three utilities.

“It’s been five years now, since you’ve increased those sewer rates,” said Shult.

For the water utilities, Shult noted there were some costs that do not occur in a normal year, such as well testing, well rehab costs and pump repairs. She says the cash overall went down $50,000.

Shult says the simplified rate increase the board just did will bring in $5,500 annually.

“It’s meant to keep up with inflation,” said Shult. “It’s not really going to, you know, provide a lot of extra cash for capital improvements or anything.”

She suggested the village consider starting a rate increase process for water services.

Shult says she knows no one wants to do a bunch of rate increases at once.

“It’s nice to have a plan to spread them out a bit,” said Shult.

She recommended starting with sewage rates, and then applying for water rates.

“The electric utility is kind of holding its own,” said Shult. “For not having increased rates for a number of years, I think it is doing OK.”

Members also heard an update from Rolly Tichy, public works, on the information for replacing lead and galvanized pipes running curbside to house, throughout the village, as part of a safe drinking water loan program. Tichy says there were about 34 services with galvanized pipes in the village, and no lead services.

Tichy says they received the go-ahead from the Public Service Commission to use that information to submit an application for funds through the state and federal program.

In the business portion of the meeting, members approved a second driveway for 206 E. Oak Street. Clerk/treasurer Sandy Buetow says the plan conforms with the needed distance between driveways.

The board also adopted a proclamation declaring April 1824 as Municipal Treasurer Appreciation Week in Wisconsin. With that in mind, members thanked Buetow and deputy clerk Janice Christie for their work.

Spring clean-up will take place Monday, May 10. Each household can dispose of one bulky item, such as a table or couch, or up to six 30-gallon bags of items. Yard waste cannot be disposed of during the event. The fall clean-up will take place Monday, Oct. 11.