Finance, Taxes and Insurance

1 VILLAGE OF WATERFORD FINANCE COMMITTEE - Amended Monday, September 14, 2020 5:00 pm Village Hall Park, 123 N. River St., Waterford WI 1. Call to Order 2. Roll Call 3. Comments and Correspondence 4. Public Appearances 5. Reading and Approval of Min: 07.13.2020 New Business 1. Review and discuss the following funds for the 2021 Budget:  Utility Summary  Water Fund  Water Capital Improvement Funding Plan  Sewer Fund  Sewer Capital Improvement Funding Plan  Debt Service Schedule  All Debt Service Loans (Bonds) 2. Review of YTD Financials, Investment Statements and Treasurer’s report Adjournment Public Notice Questions regarding the nature of the agenda items or more detail on the agenda items listed above scheduled to be considered by the governmental body listed above can be directed to Zeke Jackson, Village Administrator at 920-421-4457 or at zjackson@waterfordwi.org. It is possible that members of and possibly a quorum of members of other governmental bodies of the municipality may be in attendance at the above-stated meeting to gather information; no action will be taken by any governmental body at the above-stated meeting other than the governmental body specifically referred to above in this notice. Upon reasonable notice, a good faith effort will be made to accommodate the needs of disabled individuals through sign language interpreters or other auxiliary aid at no cost to the individual to participate in public meetings. Due to the difficulty in finding interpreters, requests should be made as far in advance as possible preferably a minimum of 48 hours. For additional information or to request this service, contact the Village Staff at 262-534-7912, or by writing to the Village Administrator at the Village Administration Building, 123 N. River St, Waterford WI, 53185 Copies of reports and other supporting documentation are available for review at the Village Administrator’s Office, Administration Building, 123 N. River St, Waterford WI 53185 during operating hours. (8 a.m. – 5 p.m. weekdays). Posted: 9/12/2020; 10:00 AM  2 1 Village of Waterford 2 Finance Committee Meeting Minutes - Approved 3 July 13th, 2020 4 *Held Via Teleconference* 5 6 Chair Ewert called the meeting to order at 5:15 pm. 7 Present: Adam Jaskie, Don Houston, Andrew Ewert 8 Absent: Brain Lauer, Troy McReynolds 9 10 Also present: Zeke Jackson, Colleen Schauer, Heather Kinkade, Chief Rick Mueller, Jim Bergles 11 12 Minutes: Ewert motioned to approve 6-08-2019. Second by Jaskie. Motion carried. 13 14 YTD Financials: Administrator Jackson gave an over view of the YTD Financials and the Treasurer’s 15 report. 16 17 Motion by Ewert to adjourn at 5:40 pm. Second by Jaskie. All aye. Motion carried. 18 19 Respectfully submitted by 20 Colleen Schauer, PIO Village of Waterford | 123 North River Street | Waterford WI 53185 | 262.534.3980  3 VILLAGE OF WATERFORD TREASURER’S REPORT For additional information, visit www.waterfordwi.org September 14, 2020 Treasurer’s Report Budget items ready to review: Summary of Utility Funds Water Fund 600 Water Capital Improvement Funding Plan Sewer Fund 610 Sewer Capital Improvement Funding Plan Debt Service Fund 300 All Debt Service Loans (Bonds) Currently working on: Staff is continuing to work on the 2021 budget Staff is continuing to gather information for Auditors as requested, will be scheduling an in person field work day soon. Auditors are hoping to have a rough draft of 2019 Audit by month end Payroll upgrade has been postponed until an issue in the old software is resolved with Paychex Included in the packet: YTD reports by Fund Utilities Aging Summary & A/R detail Ambulance Billing – LifeQuest Revenue Reports July American Deposit Funds Statement August Associated Bank Investment Funds Statement August Associated Bank Collateral Statement Expenses by Vendor Summary for August Humbly Submitted, Michelle Vandehey Village Treasurer Village of Waterford | 123 North River Street | Waterford WI 53185 | 262.534.3980  4 VILLAGE OF WATERFORD FINANCE COMMITTEE REPORT For additional information: http://www.waterfordwi.org Meeting Date: September 14, 2020 Recommendation: That the Finance Committee review and recommend approval of the draft Debt Service, Water and Sewer Rate Card, Utilities Summary, Water Operations, Water Capital, Sewer Operations and Sewer Capital sections of the 2021 Budget. Background: Preceding Reconstruction work on STH 20/83, the State required the Village to upgrade and maintain existing underground utilities in the project area. Many of the Village’s Utility Facilities had not been touched in at least 7 decades, and there were substandard materials present that were upgraded to modern specifications. Utility work on STH 20/83 by the Village cost approximately $4.3 million. When staff attempted to seek public financing through the bond markets, we quickly realized when working on bonding documents that the Village had missed capturing principal payments in it’s budgets, and as a result, was drastically under charging residents for Water and Sewer Service relative to the capital replacement and operational costs associated with the systems. To issue a Revenue Bond, an issuer must capture a “coverage ratio” of 125% of the debt service required, plus all other operations and capital replacement costs for a bond to be bought in the marketplace. We hired our auditors to perform a rate analysis to see what we needed to obtain for rates in order to be able to bond for our $4.3 million in debt. Our Auditors informed us that our Water rates needed to increase approximately 42% and that Sewer needed a 54% increase. It had been a number of years since any substantial rate increase had been reviewed (two small water rate increases of less than 2%), and at least 12 years since a “full rate case” had been made to the Public Service Commission. Staff presented this finding of fact to the DPW Committee, Finance Committee and Village Board in 2018 and 2019. The Finance Committee recommended a series of aggressive rate hikes, combined with a strong policy of supporting of growth and development that would result in an increase in the number of users in the system, effectively, lessening the burden on existing rate payers, by more efficiently using the system already in place. As a “public good” the system costs marginally more in variable costs, and almost nothing more in fixed costs, to support many more users of the system. More users is better for everyone. We did end up issuing a Water Revenue Bond, locking 1.49% interest rates for 10 years. We will need to continue to conduct a rate increase per year for the next 5 years, but the rate of increase will be comparably modest to the policies that we must pursue with our Sewer System. This Budget provides for a 3% increase “Simplified” Water Rate Case in 2021, with implementation likely in Q3 2021, and another in 2022 of 2-3%. As we work towards completion of a new well and water treatment facility in 2023, we will need a full rate case at that time, with a rate increase anticipated in low double digits. This would still offer residents of Waterford Water Rates in the lowest third of costs in the State. We were forced to issue a Sewer NAN in an amount of $2.3 million to cover our Sewer responsibilities associated with the 20/83 project. The NAN is a short term borrow, where we are making interest only payments for 3 years (interest only was the only coverage ratio we could Name: i:\1. 2017 agendas\board\2017_04\02a br 2017 bridenhagen.docx Created: 4/13/2017 4:46 PM Printed: 4/14/2017 2:38 PM Author: Robert Kufrin Last Saved By: Zeke Jackson Revision: 2  5 reasonably pull off) with a $2.3 million balloon due in 2023. Last year, we only increased rates 15%, rather than the 54% that our auditors recommended. I advised the Board and Finance Committee that we could make this work, but only if they followed an aggressive rate increase plan during the period 2020-2023. Staff is recommending this year, as a benchmark, that the Finance Committee, DPW Committee and Village Board adopt a policy that places another 15% on base rates for Sewer, as well as a volume charge increase of 15%. Fiscal Impact: As indicated in the various Budget Sections Presented. Respectfully Submitted, Zeke Jackson Village Administrator  6 Village of Waterford Water, Sewer, and Fire Protection Rates Effective January 1, 2021 Standard Meter Quarterly Service Charge Meter Size 2020 Water Charge 2020 Sewer Charge 2021 Sewer Charge 5/8 Inch $23.97 $49.77 $57.24 15% 3/4 Inch $23.97 $49.77 $57.24 15% 1 Inch $36.00 $114.02 $131.12 15% 1-1/4 Inch $42.00 $166.22 $191.15 15% 1-1/2 Inch $54.00 $216.48 $248.95 15% 2 Inch $75.00 $345.97 $397.87 15% 3 Inch $129.00 $641.67 $737.92 15% 4 Inch $198.00 $1,063.00 $1,222.45 15% Volume Cha 6 Inch $249.00 $1,420.45 $1,633.52 15% Water Vo 8 Inch $339.00 $1,826.41 $2,100.37 15% 1st 40,000 10 Inch $477.00 Next 360,000 12 Inch $618.00 over 400,000 Sewer Vo Domestic S Domestic Sewage Private Fire Protection Quarterly Service Charge Quarterly S Connection Cost 2 Inch or less $24.00 3 Inch $45.00 4 Inch $74.00 6 Inch $148.00 8 Inch $237.00 10 Inch $356.00 12 Inch $474.00  7 14 Inch $591.00 16 Inch $708.00  8 Rates Water Only Meter Quarterly Service Charge Meter Size Water Charge 5/8 Inch $11.99 3/4 Inch $11.99 1 Inch $18.00 1-1/4 Inch $21.00 1-1/2 Inch $27.00 2 Inch $37.50 Volume Charge - Per 1,000 Gallons Water Volume Charge 1st 40,000 Gallons $3.63 Next 360,000 Gallons $3.18 over 400,000 Gallons $2.73 Sewer Volume Charge Charge Domestic Sewage 2020 2021 Domestic Sewage $ 4.65 $ 5.34 15% Increase Public Fire Protection Quarterly Service Charge Meter Size Cost 5/8 Inch $30.15 3/4 Inch $30.15 1 Inch $75.00 1-1/4 Inch $111.00 1-1/2 Inch $153.00 2 Inch $240.00 3 Inch $453.00  9 4 Inch $756.00 6 Inch $1,509.00 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25  26 9:43 AM Village of Waterford 09/08/20 Expenses by Vendor Summary Accrual Basis August 2020 Aug 20 5 ALARM FIRE & SAFETY 534.39 Airbnb.com -34.24 AIRSPACE MONITORING SYSTEMS 668.53 ALL-PRO MECHANICAL 390.00 ALLIE HOUSTON 105.00 ASSOCIATED BANK -116.53 ASSOCIATED TRUST COMPANY 2,000.00 AURORA HEALTH CARE 322.00 BAKER & TAYLOR 38.74 BATTERIES PLUS #514 -166.74 BATTERIES PLUS BULBS #580 -126.00 BATTERIES PLUS LLC -378.29 BAXTER & WOODMAN 20,861.78 BERGLES, JAMES 219.65 BRODART CO 1,117.55 BROOKS TRACTOR INC 44.94 BRUMMEL, DAWN 120.00 BURLINGTON WATER/WASTEWATER 120.00 CANON FINANCIAL SERVICES 831.24 CENTRAL RACINE CTY HEALTH DEPT 20,358.50 Charnecke Tents 750.00 CHICO'S, LLC 104.82 CHRISTENSEN-KARWEIK, JANIS 355.00 CINTAS CORPORATION 367.26 CORE & MAIN 5,091.93 DAVY LABORATORIES 760.00 DIVERSIFIED BENEFIT SERVICES 96.50 DONERITE JANITORIAL SERVICE 500.00 ELEFANTE, IRENE 52.50 EMERGENCY MEDICAL PRODUCTS 89.46 EXPEDIA, INC. -750.06 EXPLORE WATERFORD 6,267.99 FASTENAL COMPANY 102.55 FOXWOOD ISLE HOMEOWNERS ASSN 32.40 GALE/CENGAGE LEARNING 53.58 GIC SUPPLY 645.09 GUTTORMSEN, TERRY & NUDO LLC 5,752.00 HARBOR HEIGHTS -16,762.18 HAWKINS, INC. 667.00 HOFFMAN, RICHARD C 246.31 HYDRO CORP 693.00 INK SPOT OF SOUTHEAST WI 53.73 JACKSON, MATTHEW (v) 309.96 JEANNE GEROVAC 75.00 JILL STEFKA 155.00 JOHNS DISPOSAL SERVICE, INC 26,254.06 JOHNSON BLOCK AND COMPANY, INC 12,200.00 Johnson Controls Fire Protection LP 486.18 JUDY KARWEIK 52.50 KAESTNER AUTO ELECTRIC CO 67.96 KARWEIK, JORDAN 75.00 KERRY HONDEL* 275.00 KLEPP, JEANNE 70.00 KLEPP, LAWRENCE 70.00 KORNDOERFER HOMES, INC. 1,000.00 LAKESHORES LIBRARY SYSTEM -155.99 LARSON, KAREN 80.00 LAUX, KATIE (v) 51.04 LINK COMPUTER CORPORATION 800.00 MEAD & HUNT 930.00 MENARDS 834.28 MICHELLE ZARLETTI 155.00 MIDWEST TESTING LLC 434.24 MINUTEMAN PRESS 185.37 MUKWONAGO AUTO PARTS 97.46 MUNICIPAL LAW & LITIGATION GROUP, S.C. 1,037.50 Page 1  27 9:43 AM Village of Waterford 09/08/20 Expenses by Vendor Summary Accrual Basis August 2020 Aug 20 NORTH WOODS 76.33 OBERHART, CARL R 120.00 PATS SERVICES, INC 1,024.26 PENDELTON TURF SUPPLY INC 35.50 PERRIN, CARYL 238.63 PRINCIPAL FINANCIAL GROUP 285.71 RACINE COUNTY CLERK 2,809.63 RACINE COUNTY TREASURER 500.00 RENEE SMIKOWSKI* 200.00 SAFEBUILT, LLC 15,316.41 SAFEWAY PEST MANAGEMENT 196.00 SCHERRER CONSTRUCTION -50.00 SETTINGSGAARD, REGINA 80.00 SOUTHERN LAKES NEWSPAPERS, LLC 143.44 SPRING-GREEN 2,008.50 STATE OF WI - COURT FINES AND SURCHARGES 1,500.40 STATE OF WISCONSIN -194.30 SUNBELT RENTALS, INC. 476.11 TDS TELECOM 2,289.97 Ugly Guy Ugly Truck SnowPlowing 2,935.00 VERIZON WIRELESS 620.44 VILLAGE OF WATERFORD 4,910.80 WATER WORKS PLUMBING CO 349.55 WATERFORD GRADED SCHOOL 5,794.81 WATERFORD OIL COMPANY 213.24 WATERFORD POLICE DEPARTMENT 32,790.50 WATERFORD STILLHOUSE 238.12 WATERFORD UNION HIGH SCHOOL 3,404.38 Waukesha County Collections -1,937.19 WE ENERGIES 17,752.43 WEX BANK 2,220.35 WIND LAKE AUTO PARTS 114.91 WISC-DOT TVRP UNIT 6.00 WISC DEPT OF TRANSPORTATION 13,391.36 TOTAL 207,480.25 Page 2 28 29 30 31 32 33 34 35 36  Village of Waterford Customer Statistical Report C017 37 Filters: Billing Group: All Accounts, From Date: 11/01/2019, To Date: 08/31/2020, Municipality: Village of Waterford, Past Due Days: 90 Address Type Reporting Group Total Customers Payments Customers Past Due Residential Overpayment 373 69646.42 42 Sewer 1926 611303.98 363 Water 2017 506006.87 363 Other 3 20.00 0 Commercial Overpayment 43 38501.21 6 Sewer 150 98607.15 25 Water 151 75154.19 25 Other 1 0.00 0 Industrial Overpayment 2 0.00 0 Sewer 13 16805.00 0 Water 13 12737.91 0 Public Overpayment 1 368.80 0 Sewer 20 34398.03 1 Water 20 28011.91 1 Multi Family Overpayment 7 121.14 0 Sewer 38 50976.56 1 Water 38 35219.08 1 Printed 09/08/2020 10:01:54 am 1/1 Powered by TCPDF (www.tcpdf.org)  Village of Waterford Aging Report R001 38 Filters: Aging Profile: Standard Aging, Billing Group: All Accounts, Aging Date: 08/31/2020 11:59 PM, Include: All Balances, Include Groups Older than or Equal To: 120 days, Group By: Account Status, Sort By: Account Number, Customer Info (CSV Only): Owner, Report Type: Summary Aging Summary Account Status Water Sewer Other Overpayment Total Current 30 days 60 days 90 Days 120 days Active 59,742.52 77,793.56 0.00 -1,064.52 136,471.56 -100.00 -250.00 44,408.81 -100.00 92,512.75 Suspended 81.93 -199.08 0.00 0.00 -117.15 0.00 0.00 347.71 0.00 -464.86 Inactive 2,686.89 3,755.93 0.00 -3.29 6,439.53 0.00 0.00 0.00 0.00 6,439.53 Pending 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total 62,511.34 81,350.41 0.00 -1,067.81 142,793.94 -100.00 -250.00 44,756.52 -100.00 98,487.42 Printed 09/08/2020 09:59:21 am 1/1 Powered by TCPDF (www.tcpdf.org) 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75