August 2, 2022 – Kewaskum, WI – The Kewaskum Village Board received a couple reports during its Monday night meeting, August 1, 2022 and all appear to point to upcoming tax increases for residents. Inflation was deemed one of the primary factors driving increased costs.
Aside from the audit presented by a representative from Baker Tilly, click HERE for that report, the board also discussed possible action on a Water Utility Simplified Rate Case or basically a proposed rate increase.
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According to Village Clerk Tammy Butz – “We’re looking at the last increase for water rate is 2015. If you look at inflation alone, we’re not keeping up with our expenses at all. You add in our facility and equipment expenses and we’re way behind where we should be to help plan for future expenses.”
Butz mention the Highway 45 project in 2023 that will be an expense to the water utility and that expense will need to be covered as well.
The Village also lost the Sprint leasing contract atop the water tower which means a loss of $75,000 in 2023. “That’s another reason why you should look at a rate increase,” said Butz. “According to the Public Service Commission (PSC) we’re looking at a 4.5% increase on water usage this year and the net effect will be 13 cents more per 1,000 gallons.”
Butz gave the example of a typical household that uses 9,000 gallons per quarter, the charge would be $1.17 more for water usage per quarter. If usage is 12,000 gallons, then it will be $1.56 more per quarter.
“As a whole this would have a major impact on our water utility fund,” said Butz. “We have a flat rate charge for the sewer, and we could also look at increasing that. The last increase in the sewer rate was 2015 and it was a $7 increase; it went from $22 to $29.”
Trustee Dick Knoebel said, “What we don’t want to do is get behind again. Never again do we want to get behind. A gradual increase is better than one big one.”
Butz said if both the water and sewer increases were passed it would generally equal about $10 per quarter.
Trustee Nathan Wendelborn mentioned the pain of inflation and asked the board to rethink the charges. “It seems like nothing, but we just hit all these users with 11% now and we’re hitting them with 11% again and then another 4.5%….”
Trustee Fuzz Martin said he could see a responsible increase rather than “saddling people on a fixed income with a huge increase.”
Wendelborn responded, “I’m not saying we shouldn’t do it now. We should wait, maybe until the middle of next year. Push it down just a little bit.”
Trustee Jim Hovland suggested splitting the increases and implementing one in January and the other next July.
Butz indicated the Public Service Commission normally increases the rates at the same time. Trustee Knoebel asked if that information could be confirmed or if the PSC increases could be split.
“See if we can split it up – do one now at $1.50 and then the second half would come in next July so people can prepare,” he said.
Village President Dave Spenner asked that the issue come back with some of the questions resolved, and the board consider an increase at the next meeting.
The next issue the Village Board discussed was renewal of the sewer charge for Kewaskum Foods, LLC.
While the board reviewed the charges it was noted the document was copied and pasted from the 2021 agreement. Questions arose about how many times the document had been copied without any increase and Butz said three times.
Trustee Wendleborn said it wasn’t fair to charge homeowners an increase and let businesses slide.
Spenner said “inflation went up 10 percent” and he was in agreement with Wendleborn that the contract be reviewed.
“I don’t want to see us chasing another business out of town,” said Knoebel.
“I think what Adam is saying is we’re using the same numbers from last year’s bill without any adjustment,” said Spenner. “How long have we used this agreement? Is this the second time?”
It was revealed this was the third year the same agreement came before the Village Board with no adjustment.
“I just have a hard time saying we’re going to charge everyone in this Village an increased fee but we’re not going to charge the businesses,” said Wendleborn.
Then there were questions that the agreement was already dated as being implemented July 1, 2022. Gitter said they would have to back date it if changes were made.
More information will be brought forward in the next meeting.
Looking ahead to 2023 budget
- Village administrator Adam Gitter said he was “not sure how Kiwanis Pond will ever reopen at an annual cost of $60,000.”
- The Village of Kewaskum has unspent American Rescue Plan Act (ARPA) funds of $213,457.
- In comparison Washington County has $26 million in ARPA funds
- As Kewaskum residents look at budget increases neighbors should also be aware of the proposed $3.6 million referendum being proposed for the November 8, 2022 ballot by Washington County. Click HERE for details.
