ELLSWORTH – At its Monday, Dec. 4 meeting the Ellsworth Village Board voted to hire Ehlers Public Finance Advisers to provide water and sewer rate studies. According to …
This item is available in full to subscribers.
To continue reading, you will need to either log in, using the login form, below, or purchase a new subscription.
If you are a current print subscriber, you can set up a free website account and connect your subscription to it by clicking here.
Otherwise, click here to view your options for subscribing.
Please log in to continue |
ELLSWORTH – At its Monday, Dec. 4 meeting the Ellsworth Village Board voted to hire Ehlers Public Finance Advisers to provide water and sewer rate studies. According to Clerk/Administrator-Treasurer Brad Roy, the study is sorely needed.
“Our latest audit indicated our utility rates are not sufficient to sustain the costs of service,” Roy said. “We are losing money. The utility rates have been discussed multiple times throughout the year as they relate to various projects and plans.”
Village utility rate increases could come from moving the Public Fire Protection charge to a utility fee, Grant and Piety streets utility reconstruction, and the Western Wisconsin Biosolids.
“We know what the big dollar amount is, but we have yet to see what the impact on the utility rates would be,” Roy said. “This study would help us to see that broken down by each project.”
According to a village memo, there hasn’t been an analysis of what the cumulative impact these projects could have on utility rates.
“It will give us an accurate picture of what we should be charging instead of throwing a dart at a wall,” Trustee Andrew Borner said.
The sewer utility rate study will provide a long-range cash flow analysis with the proposed projects and plans. The village can also choose to have a sewer rate study completed too. Davy Engineering recently completed a rate study based solely on revenues and expenses, Roy said.
The fees for the initial phase of this study total $4,500. The optional sewer rate study will cost $10,000.
The water utility rate study will include a long-range cash flow analysis with the proposed projects and plans and a Public Service Commission rate case submittal, totaling $13,500.
“This will allow the board to make a more informed decision before we go forward with all these projects, Roy said. “In my opinion, spending $25,000 to fix this problem is well worth it. It’s been an issue for years. We are short every year.”
Village President Becky Beissel said the village previously raised rates just enough so as not to trigger a PSC review.
Roy’s hope is the studies will be about $18,000 total, but that amount could go up if more analysis is needed on the sewer rate study.
In the last five years, Ehlers has completed more than 90 utility rate studies and 37 conventional rate case applications to the PSC.
Meadowlark Eco-Apartments
Paul Gerrard of Gerrard Corporation is proposing to develop a 54-unit multi-family housing project in Crossing Meadows in existing Tax Increment District 7. He appeared before the board to give them an update on his progress and next steps.
“I appeared in front of you about six months ago asking for support for a financing mechanism so we could obtain capital to build this project,” Gerrard said.
However, the expenditure period for TID 7 had expired, meaning that the Gerrard property would need to be removed from TID 7 and into a newly created TID. A TID is an economic development tool used by municipalities to promote economic development within a certain geographic area. Taxes collected on the increased property value within the TID are used to pay for projects and expenses in the TID.
The village board in September approved a Letter of Commitment to allow Gerrard to continue to pursue outside funding for the project and begin obtaining approvals from the village for the possible creation of a new TID. The Joint Review Board would need to approve the creation of a new TID, Roy said.
Gerrard reminded the board of his past successes in Ellsworth, including Ellsworth Cottages and homes in Crossing Meadows. This project would contain 54 units, some for disabled individuals, with a mix of one-, two- and three-bedroom units. One-bedroom units would cost $660 in rent; three-bedroom units would be $1,595. West Cap would own the development long-term, Gerrard said.
“This project also would be loaded with green energy,” Gerrard said. “We would put solar on this project and we would also do geothermal heating and cooling on this project.”
Roy said TID 7 is getting to a point where it can sustain itself. Financing options and the TID will be discussed at a later date.
Impact fees
The board had a spirited discussion about extending the sunset date on the reduction of residential and commercial impact fees, which are used to acquire, establish, upgrade, expand and construct public facilities necessary to accommodate development.
According to Roy, the village hasn’t collected impact fees since 2019, even though the village ordinance states the village should collect at least 50%.
“There hasn’t been a lot of development the past few years,” Roy said. “Reducing impact fees was done to generate more development. From what I can find in our records, it hasn’t.”
Attorney Bob Loberg said the impact fees were never billed out and the records were in disarray.
“An effort was made to decipher a bit about this before Brad started and it was not possible,” Loberg said.
Village of Ellsworth impact fees, when enforced are (for each residential equivalent unit)
The board voted to table the issue until April 15 and extend the sunset date until then in order for Roy to gather more information on what the fees could be used for.
2024 budget
The Ellsworth Village Board approved the proposed 2024 budget in the amount of $1,495,289, a 6.62 increase from last year, at a special meeting held Nov. 27.
According to Roy, the mil rate increased by .000324502. The village’s total property valuation is $299,719, 900. The village portion of people’s tax bills will total 33% (last year it was 32%).
Other business
