Sewer and Water Utilities — Agenda packet

POSTED DATE/SIGNATURE___________________________ SEWER AND WATER UTILITIES COMMITTEE SPECIAL MEETING AGENDA Tuesday, August 25, 2026 at 1:00 P.M. Sister Bay Wastewater Treatment Plant, 2124 Autumn Ct., Conference Room To access the meeting electronically, click: https://zoom.us/j/4439901723?pwd=yAVpi40M1OIqgNufcVUE8XWCUSkKaH.1&omn=97063638580 Meeting ID: 443 990 1723 Passcode: 304078 To connect by phone: 1-301-715-8592 - Meeting ID 443 990 1723# For additional information check: http://www.sisterbaywi.gov AGENDA 1. Call Meeting to Order 2. Roll Call 3. Approval of Agenda 4. Approval of Minutes of the July 14, 2026, Meeting, as Published 5. Comments, Correspondence and Concerns from the Public 6. Discussion/Action Items: a) Sewer Rate Study RFP b) Water Rate Study-Simplified or Conventional c) 2027 Water, Wastewater and Collection Budget Review d) 2016 Chevrolet Silverado-Surplus Property e) Cybersecurity Discussion f) Wastewater Treatment Plant Operations Report 7. Matters to be placed on a future agenda or referred to a committee, official, or employee 8. Adjournment Public Notice Questions regarding the nature of the Agenda items or more detail on the items listed can be directed to Megan Barnes, Utilities Director, at megan.barnes@sisterbaywi.gov. It is possible that members of and possibly a quorum of members of other governmental bodies may attend the meeting to gather information; no action will be taken by any governmental body other than the body specifically referred to above. 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 or accommodation at no cost to the individual. 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 Sister Bay Village Administration Office at 854-4118, (FAX) 854-9637, or by writing to the Village Administration Building, 2383 Maple Drive, PO Box 769, Sister Bay, WI 54234. Copies of reports and other supporting documentation are available for review at the Village Administration Building during operating hours (8 a.m. – 4 p.m. Monday – Thursday and 8 a.m.-12 p.m. Friday). The Village of Sister Bay is an Equal Opportunity Provider and Employer. 1 Minutes for the July 14, 2026 meeting of the Utilities- SWUC Committee- Unapproved Version Sewer and Water Utilities Committee Meeting Minutes Tuesday, July 14, 2026 at 1:00 P.M. Sister Bay Wastewater Treatment Plant- 2124 Autumn Court and Video Conference (Unapproved Version) 1. Call Meeting to Order Chairperson Nate Bell called the Sewer and Water Utilities meeting to order on Tuesday, July 14, 2026, at 1:00 PM. 2. Roll Call A roll call was conducted, with the following members present: Chairperson Nate Bell and member Steven Bacsi Staff present: Utilities Director Megan Barnes, Village Administrator Ben Andrews, Utilities Clerk Kara Kroll Others: Walter Nawrot 3. Approval of Agenda Motion by Bell, second by Bacsi to approve the agenda as presented. Motion carried – all ayes. 4. Approval of Minutes of the March 10, 2026 Meeting, As Published Motion by Bell, second by Bacsi to approve the minutes of the March 10, 2026 meeting as presented. Motion carried – all ayes. 5. Comments, Correspondence and Concerns from the Public Utilities Clerk Kara Kroll noted one item of correspondence had been received from a member of the public (Walter Nalrot). Utilities Director Megan Barnes indicated the letter had been attached to Agenda Item 6e (Leak Credit Policy Discussion), as it was most directly relevant to that topic. 6. Discussion/Action Items a. Sludge Tank Aeration System Repair Director Barnes reported that after delays caused by ice in the tank, staff were finally able to visually assess the damage to the sludge tank aeration system and obtain photographs. Those materials were forwarded to August and Winter, the original contractor who installed the system, who returned a repair quotation. Director Barnes noted the quote was higher than anticipated but requested approval to proceed, as the storage tank needs to be operational before winter to ensure the ability to haul sludge if an ice shelf forms again. The repair cost would be drawn from the utility's replacement fund. Chair Bell confirmed with Director Barnes that this fund is built into existing utility rates and that this expenditure would not 2 Minutes for the July 14, 2026 meeting of the Utilities- SWUC Committee- Unapproved Version necessarily necessitate a rate increase. Director Barnes noted that while other contractors had been contacted for competing quotes, none had responded, likely due to the specialized nature of the work—requiring large crane equipment and knowledge of specific elevations and pressures. The aeration system was originally installed in 2004, representing approximately 22 years of service life. Motion to recommend approval of the Sludge Tank Aeration System Repair to the Village Board was made by Chair Bell and seconded by Bacsi. The motion carried – all ayes.. b. Disconnection Policy Discussion Director Barnes provided context for the suite of policies presented under Items 6b through 6e, noting that most are required to align with the provisions of PSC 185 (Wisconsin Administrative Code for water utilities). Utilities Clerk Kara Kroll and Administrator Ben Andrews led the work on the Disconnection, Deferred Payment, and Tax Certification policies, while Director Barnes developed the Leak Credit policy. Director Barnes noted the disconnection policy is standard and aligns with all regulatory requirements. Motion to recommend the Disconnection Policy to the Village Board was made by Chair Bell and seconded by Bacsi. The motion carried – all ayes. c. Deferred Payment Agreement Policy Discussion Director Barnes noted the Deferred Payment Agreement Policy similarly aligns with PSC 185 requirements. Administrator Andrews confirmed this assessment. Motion to recommend the Deferred Payment Agreement Policy to the Village Board was made by Chair Bell and seconded by Bacsi. The motion carried – all ayes. d. Tax Roll Policy Discussion Kroll explained that the Tax Roll Policy governs the process for certifying unpaid utility balances to the county tax roll. Under the policy, outstanding charges must be compiled by September 30th, notices sent on October 15th, a penalty applied on November 1st, and the list submitted to the county on November 15th. Kroll noted that while the policy establishes a formal process, it is rarely invoked in practice—most residents pay before the matter reaches tax roll certification. Motion to recommend the Tax Roll Policy to the Village Board was made by Chair Bell and seconded by Bacsi. The motion carried – all ayes. e. Leak Credit Policy Discussion Director Barnes presented a draft Leak Credit Policy, noting this is the first time the village has sought to establish a formal written policy for sewer leak adjustments. The policy was developed by referencing similar policies from other Wisconsin municipalities including Cottage Grove, Palmyra, and Schofield, and is intended to provide a consistent framework for staff when evaluating leak credit requests. Key provisions of the draft include: crediting eligible customers back to their average typical usage; applying a tiered occurrence system (100% of excess usage credited on a first occurrence, 75% on a second occurrence within a year, with further reductions thereafter); requiring that any credits exceeding $1,000 be approved by the Finance Committee; and vesting initial discretion with the Utilities Director, with appeal to the committee. Committee Member Bacsi raised the question of how to verify whether a spike in water usage was truly accidental, noting that without verification it could be subject to abuse. Director Barnes and Kroll noted the policy's tiered structure inherently discourages repeated claims. Kroll further noted that credits only apply to the sewer portion—custome rs are always charged the full amount for water consumed regardless—which limits the financial incentive to misuse the policy. Director Barnes 3 Minutes for the July 14, 2026 meeting of the Utilities- SWUC Committee- Unapproved Version added she attempts to verify claims by cross-referencing inflow and outflow data at the treatment plant, though this can be complicated by seasonal factors such as heavy rainfall causing groundwater infiltration. Discussion also touched on the public correspondence received from Walter Nalrot, whose leak claim arose during a heavy snowfall followed by rapid snow melting and heavy rainfall, making independent verification difficult. Administrator Andrews clarified that because sewer rates are not regulated by the PSC, the village is not legally required to have a formal policy before rendering decisions but noted that having a policy in place would ensure consistency going forward. The committee expressed general comfort with the policy as drafted and agreed it serves as a sound living document that can be revised if circumstances warrant. Motion to recommend the Leak Credit Policy to the Village Board was made by Chair Bell and seconded by Bacsi. The motion carried – all ayes. e. i 2373 Parkview Dr: Water/Sewer Billing Dispute This item was addressed in the context of the Leak Credit Policy discussion above. Administrator Andrews confirmed that, as sewer rates are unregulated by the PSC, the Utilities Director retains discretion to administratively resolve the billing dispute in line with the guidelines discussed. No separate formal action was taken on this item. f. Rate Discussion – Sewer Director Barnes initiated a discussion on sewer rate review, noting that the village is required by its utilities code to conduct an annual review of user rates. She indicated that due to an ongoing PSC proceeding related to prior sewer rates, rate activity had essentially been placed on hold, including a rate increase that was planned but never implemented. Director Barnes recommended that the village once again contract an outside firm to conduct the rate study, rather than relying on the format used previously, and suggested issuing a more comprehensive Request for Proposals (RFP). She acknowledged the need to be cautious given the pending proceeding. Administrator Andrews agreed with seeking an independent specialist and emphasized that whatever the selected firm recommends, the village should follow their recommendation without deviation, to ensure the credibility of the process. The committee discussed ways to attract more respondents than the two received in the prior RFP cycle. Suggestions included posting on the Quest CDN procurement platform, developing a more thorough RFP, and building pre-submission question-and-answer opportunities to reduce ambiguity for prospective bidders. Chair Bell raised the idea of exploring seasonal or tiered sewer rate structures to reflect the disproportionate burden placed on village infrastructure during peak tourism months. Director Barnes noted this may be feasible on the sewer side and cited the significant difference in flows between winter (as low as 0.2 MGD) and peak summer periods (approaching 0.4–0.5 MGD on busy weekends), against a rated capacity of 0.7 MGD. The committee agreed this concept should be explored as part of the forthcoming rate study. Director Barnes noted that rather than scheduling a special committee meeting solely for the sewer RFP, it could be combined with the Water Rate Study RFP discussion (Item 6h). The committee reached consensus to proceed with developing a combined RFP and to schedule a special meeting for committee review prior to posting. g. Water Rate Study RFP Director Barnes reported that the last conventional water rate study was conducted in 2017, with rates becoming effective in 2018. She noted that the PSC typically recommends a new conventional rate study approximately every eight years, and that annual simplified rate increase applications had been unsuccessful in the interim. Director Barnes presented a draft RFP for a new water rate study. 4 Minutes for the July 14, 2026 meeting of the Utilities- SWUC Committee- Unapproved Version The proposed timeline calls for the RFP to be released December 1, 2026, with proposals due January 1, 2027, allowing for committee review at the January utilities meeting. A conventional water rate study takes approximately 200 days to compile, with a target submission to the PSC by June 2027, designating 2027 as the test year—which Director Barnes noted is advantageous given several planned capital projects on the water side. Administrator Andrews noted that both accounting and engineering firms are qualified to conduct rate studies, and that the choice of firm type may depend on whether future capital upgrades or purely financial sustainability is the primary driver. Director Barnes indicated financial stability is the main driver but noted the potential for growth associated with proposed development along Highway 57. The committee reached consensus to combine the sewer and water rate study RFPs and schedule a special meeting to review the combined RFP document before it is posted. The committee agreed to make every effort to broaden outreach to potential respondents. h. Wastewater Treatment Plant Operations Report Director Barnes provided the following operational updates: WPDES Permit Renewal: The permit renewal application was submitted to the DNR on July 2, ahead of the July 6 deadline. Director Barnes noted that the DNR currently does not have a permit drafter on staff, creating uncertainty about the timeline for the permit draft and sanitary survey. She flagged that the reissued permit may impose additional limitations on pollutant discharge, potentially requiring new compliance steps. PFAS Testing Requirement: The facility is now covered under a general permit for biosolids PFAS testing, which will be an annual requirement going forward due to the village's contribution of sludge to another facility (New Water in Green Bay). Ferric Addition SOP: As part of the permit renewal, Director Barnes developed and received DNR approval for a Chemical Phosphorus Removal System Standard Operating Procedure governing the facility's ferric chloride dosing process. Any future changes to the ferric addition system must now be submitted in writing to the DNR. 2025 CMAR Submission: The annual Compliance Maintenance Annual Report was submitted to the DNR. A CMOM overview discussion with DNR staff is anticipated later in the year. DATCP Lab Evaluation: A biennial water lab evaluation by the Department of Agriculture, Trade and Consumer Protection is scheduled for the following Monday. Pretreatment Building: A persistent shorting issue with the fine screen equipment that had been causing electrical damage was identified and resolved. Operations in the pretreatment building have improved significantly as a result. Sludge Hauling: New Water in Green Bay is temporarily reducing its intake due to incinerator and digester maintenance, returning to full operations at the end of September. 4th of July Flows: Flows on the July 4th weekend were lower than in prior years, reaching approximately 0.4 MGD on the peak day compared to 0.5 MGD the previous year. Director Barnes noted that the Friday before the holiday was actually the busiest flow day of the weekend, and that flows dropped notably by Sunday as visitors departed early. SCADA Connectivity: Director Barnes reported that the remote access difficulties experienced during peak periods in prior years had not recurred this season. Director Barnes also noted, as a follow-up to the rate discussion, that the village does not currently have a fee schedule charge for ammonia testing conducted in-house, which should be added to the unsewered wastewater rate schedule at the next opportunity. This item was referred to a future utilities committee agenda. 5 Minutes for the July 14, 2026 meeting of the Utilities- SWUC Committee- Unapproved Version Regarding the regional biosolids dryer project, Director Barnes indicated that following an initial meeting with neighboring communities, no further correspondence had been received. Administrator Andrews suggested that formal written communication at the elected official level rather than staff-to- staff—might be more effective in initiating a response and securing inclusion in their board deliberations, given the closing window for the project timeline. The committee agreed this approach was worth pursuing. 7. Matters to be placed on a future agenda or referred to a committee, official, or employee The following items were identified for future action: ● Ammonia testing fee to be added to the utility fee schedule, referred to the next utilities committee meeting. ● Combined Sewer and Water Rate Study RFP to be drafted and brought back to the committee at a special meeting prior to posting. 8. Adjournment Motion by Bell, second by Bacsi to adjourn at 2:01 PM. Motion carried – all ayes. The next meeting of the Sewer and Water Committee will be conducted at 1:00 P.M. on Tuesday October 13, 2026 at the Sister Bay Wastewater Treatment Plant - 2124 Autumn Court and via Video Conference. Respectfully Submitted, Kara Kroll Utilities Clerk 6 Page 1 STAFF REPORT Date: August 25, 2026 To: Sewer and Water Utility Committee Re: Conventional vs. Simplified Water Rate Case Author(s): Megan Barnes, Utilities Director Action(s) Requested: ܆Ordinance܆Resolution܈Motion ܈Receive/File BACKGROUND INFORMATION Before a public water utility can change its rates and begin billing customers using those rates, the utility must first receive approval from the Public Service Commission (PSC). There are two options for filing a water rate case with the PSC; Simplified Rate Case (SRC) or Conventional Rate Case (CRC). The SRC is a simple and convenient way for utilities that meet specific criteria to increase water rates. The SRC would provide an inflationary type increase that helps utilities maintain revenue continuity, with the current rate increase factor at 3 percent. Customers may benefit from a utility using the SRC process to provide smaller, more frequent rate increases. The SRC process includes an SRC application and notice to customers but does not require a public hearing. However, If the utility is interested in more substantial changes to its rates, it should file an application for a Conventional Rate Case (CRC). The CRC process includes a CRC application, notice of proceeding, data request, revenue requirement exhibit, cost of service and rate design exhibit, public hearing, final decision, and implementation of rates. PRIOR ACTION/REVIEW Annually, the Utility has historically applied for the PSC Simplified Rate Case (SRC). In 2025, the SRC application was approved by the Village Board on June 17, 2025. Staff then applied for the SRC, which resulted in no rate increase being granted. In 2025, staff had discussed the process of PSC water rate cases with auditors with CliftonLarsonAllen LLP (CLA), to better understand the process and how the utility should proceed. Since the utility did not qualify for the SRC, they recommended that we move forward with a Conventional Water Rate Case (CRC). The last CRC for the utility was applied for in 2017, with the rates being approved by the PSC on January 22, 2018, and effective January 23, 2018. The auditors had advised that the PSC will typically deny simplified rate cases for utilities that 7 Page 2 have not performed a conventional case within the last five years. The cost associated with a CRC would be an estimated $9,500-$12,500 for a qualified and licensed consultant to provide water rate study services, with minimal Village staff assistance. At the July 14, 2026, Sewer and Water Utilities Committee meeting, a Request for Proposals (RFP) was presented and discussed to solicit proposals from qualified and licensed consultants to provide water rate study services in 2027. On July 15, 2026, the Utility received a letter notifying Sister Bay Water and Sewer Utility that Commission staff has determined that the Utility is eligible for an SRC. Commission staff encourages the Utility to apply for a rate increase through an SRC. The SRC provides an inflationary increase, the current rate increase factor is 3 percent. Staff has prepared the table below to show the comparison of 2027 revenues by applying an assumed percentage increase to the December 31, 2025, actuals with an assumed three percent increase applied for the SRC, and six percent increase applied for the CRC. Description 12/31/2025 Actual 2027 SRC assuming 3% 2027 CRC assuming 6% ASSESSMENT LETTER FEES $2,175 $2,240 $ 2,305 METERED WATER SALES $381,585 $393,032 $ PUBLIC FIRE PROTECTION $123,049 $126,739 $130,432 UNMETERED WATER SALES $565 $582 $599 HYDRANT USE $1,230 $1,267 $1,304 LATE PAYMENT PENALTIES $359 $369 $380 INTERGOVERNMENTAL CHARGES $25,439 $26,202 $26,965 TOTAL WATER REVENUES $746,599 $940,531 $956,564 RECOMMENDED ACTION(S) Village staff recommends that the Sewer and Water Utility Committee discuss the two options presented for applying to the PSC for the authority to increase water rates (SRC and CRC), and direct staff to submit the preferred application type with respect to the water rates. “I move to direct staff to take the [preferred application type] with respect to applying to the Public Service Commission of Wisconsin for the authority to increase water rates.” ATTACHMENT(S) 1. Simplified Rate Case Outreach – Public Service Commission of Wisconsin 8 Telephone: (608) 266-5481 Fax: (608) 266-3957 Home Page: http://psc.wi.gov E-mail: pscrecs@wisconsin.gov Public Service Commission of Wisconsin Summer Strand, Chairperson 4822 Madison Yards Way Kristy Nieto, Commissioner P.O. Box 7854 Marcus Hawkins, Commissioner Madison, WI 53707 -7854 July 15, 2026 Sister Bay Water and Sewer Utility P.O. Box 655 Sister Bay, WI 54234-0091 Re: Simplified Rate Case Outreach Utility: 5500 To Whom It May Concern: To help ensure that Wisconsin water utilities provide safe, reliable, environmentally responsible, and affordable water service in a sustainable manner, the Public Service Commission (Commission) establishes customer rates and tariffs and monitors the financial integrity of water utilities. This year, Commission staff reviewed the rate case history of water utilities, using data from the water tariff database and PSC Annual Reports to identify utilities that are eligible for a simplified rate case (SRC). This letter notifies Sister Bay Water and Sewer Utility (Utility) that Commission staff has determined that the Utility is eligible for an SRC. An SRC is a simple and convenient way to adjust rates that accounts for inflationary increases to maintain revenue continuity. An SRC helps sustain a utility’s financial health and avoid significant rate hikes for customers. About the SRC Process Commission staff encourages the Utility to apply for a rate increase through an SRC. An SRC is a streamlined process for adjusting water rates that is available to municipal utilities that meet specific criteria. Eligibility is assessed based on historical and current financial criteria, including rate case frequency and the Commission’s current benchmark rate of return. An SRC provides an inflationary increase to public fire protection and general service rates that helps utilities maintain revenue continuity. The current rate increase factor is 3 percent. The SRC process includes an application and a notice to customers but does not require a public hearing. Commission staff typically processes an SRC application within 45 days after it is submitted. The rates can be made effective 45 or more days after the application is submitted. 9 Page 2 How to Apply for an SRC The SRC application is easy to complete. Requests for rate applications may be made on the Commission website using the following link: Simplified Rate Case Application (SRC). Commission staff is available to assist the Utility in moving forward with an SRC and welcomes the opportunity to discuss any questions. Additional information about the SRC process and eligibility requirements is available on the Commission website: PSC Simplified Rate Case - Water Utility. Please direct your questions to Erik Lindgren at erik.lindgren@wisconsin.gov or by phone at (608) 261-9402. Sincerely, Andrew P. Galvin Administrator Division of Water Utility Regulation and Analysis APG:EA:rgs:DL:02147403 10 Page 1 STAFF REPORT Date: August 25, 2026 To: Sewer and Water Utility Committee Re: 2027 Water, Wastewater and Collection Budget Review Author(s): Megan Barnes, Utilities Director Action(s) Requested: ܆Ordinance܆Resolution܈Motion ܈Receive/File WATER FUND – Summary of Significant Budgetary Changes Revenues Description 12/31/2025 Actual 06/30/2026 Actual 2026 Budget 2027 Budget Change ASSESSMENT LETTER FEES $2,175 $780 $3,000 $2,240 ($760) METERED WATER SALES $381,585 $159,822 $378,750 $393,032 $14,282 WATER SYSTEM MAINTENANCE $1,559 $- $2,550 $2,550 $- CONNECTION FEES – WATER $2,118 $333 $2,500 $2,000 ($500) LATE PAYMENT PENALTIES $359 $347 $600 $369 ($231) RENT FROM PROPERTY $4,400 $- $4,800 $- ($4,800) INTERGOVERNMENTAL CHARGES $37,645 $7,176 $39,064 $39,702 $638 INTEREST $71,277 $39,519 $60,000 $70,000 $10,000 WELL PERMITS $1,800 $50 $800 $400 ($400) OTHER SYSTEM REVENUE $5,624 $1,065 $5,575 $5,575 $- CAPITAL CONTRIBUTIONS $ 101,793 $- $400,000 $280,000 ($280,000) TOTAL WATER REVENUES $746,599 $278,822 $1,038,843 $940,531 ($98,312) x Metered Water Sales: A water rate increase is likely. Correspondence was received from the Public Service Commission of Wisconsin (PSC) that the Utility is eligible for a Simplified Rate Case (SRC). Applying a 3% increase across relevant customer revenue accounts and relevant intergovernmental charges accounts. x Connection Fees: Small adjustment based on decreased development. 11 Page 2 x Late Payment Penalties: Small adjustment based on historical changes. x Intergovernmental Charges: This is the amount that is charged to the Liberty Grove Utility District. Changes are based on usage and changes in the charge out rates. Also includes revenue from water testing. Revenues from water testing have increased as the USPS no longer mails water samples to the Wisconsin State Laboratory of Hygiene. x Interest: Estimated interest earned based on cash flows and investment expectations. x Well Permits: There are 8 well permits that are scheduled for renewal in 2027, down from 29 in 2026. x Other System Revenue: This is an audit entry, which is based on a charge to the collection fund for the use of meters in the billing process. x Capital Contributions: ST HWY 57 to Northwoods Dr Water Extension (water fund portion) Expenditures Description 12/31/2025 Actual 06/30/2026 Actual 2026 Budget 2027 Budget Change EMPLOYEE COSTS $184,831 $87,419 $239,060 $215,832 ($23,228) SERVICES $40,136 $19,311 $68,970 $87,670 $18,700 SUPPLIES & MAINTENANCE $82,431 $55,161 $129,925 $332,387 $202,465 MATERIALS $7,937 $4,056 $10,750 $11,000 $250 FIXED CHARGES $481 $7,335 $1,532 $2,059 $527 DEBT SERVICE COSTS $ - $- $- $- $- OTHER COSTS $244,521 $122,500 $245,000 $250,000 $5,000 LGUD RELATED COSTS $2,364 $1,924 $9,002 $4,250 ($4,752) TOTAL WATER EXPENDITURES $562,700 $297,705 $704,239 $903,198 $198,959 x Services, Supplies & Maintenance, Materials, and Fixed Charges: No significant changes to note. PRV installation on S Bay Shore Dr to lower high pressures on Little Sister Rd was moved to 610-61500-362-655 Distribution Maint - Other (originally budgeted in 2026 under capital improvement; it is new infrastructure needed, so it was moved to the appropriate account) Also added Well 2 booster pump replacement estimated at $75,000 utilizing replacement funds that will be moved to operating funds to cover the cost under 610-61500-366-623 Water Plant – Pumping Op. Addition of $25,000 to 610- 61500-213-923 Outside Services Employed for curb stop replacements. x Other Costs: Increase in depreciation. Capital Purchases Meters: $50,000 total cost - $50,000 from operating funds. Well 3 Refurbishment: $30,000 from operating funds. Booster Pump Replacement: $75,000 from replacement funds. PRV Installation-S Bay Shore Dr: $150,000 new infrastructure capital contribution. ST HWY 57 Water Extension: $280,000 nee infrastructure capital contribution. 12 Page 3 WASTEWATER FUND – Summary of Significant Budgetary Changes Revenues Description 12/31/2025 Actual 06/30/2026 Actual 2026 Budget 2027 Budget Change SEWER SERVICES $1,094,104 $590,773 $1,167,004 $1,099,894 ($67,110) SEPTIC & HOLDING $200,184 $51,527 $239,074 $204,334 ($34,740) LATE PAYMENT PENALTIES $1,267 $1,678 $4,775 $2,500 ($2,275) INTERGOVERNMENTAL CHARGES $148,037 $44,162 $163,397 $150,150 ($13,247) INTEREST AND DIVIDENDS $108,537 $43,767 $75,000 $90,000 $15,000 TOTAL WASTEWATER REVENUES $1,553,139 $731,937 $1,657,369 $1,556,828 ($100,541) x Sewer Services: Rate increase occurred in 2025. The decrease in revenues is due to usage and customer numbers, as well as historical trends. x Septic & Holding: 2025 revenues were skewed due to less holding tank and septic tank waste being brought in between March 2025-July 2025. Ephraim is now accepting some waste from Liberty Grove as well. x Late Payment Penalties, Intergovernmental Charges, and Interest: Small updates based on historical revenues. Expenditures Description 12/31/2025 Actual 06/30/2026 Actual 2026 Budget 2027 Budget Change EMPLOYEE COSTS $379,055 $186,127 $383,843 $372,577 ($11,266) SERVICES $220,208 $91,899 $256,315 $297,465 $41,150 SUPPLIES & MAINTENANCE $70,352 $87,759 $110,800 $141,936 $31,136 MATERIALS $40,218 $18,869 $66,000 $69,500 $3,500 FIXED CHARGES $27,754 $21,719 $34,192 $30,400 ($3,792) DEBT SERVICE COSTS $55,610 $26,555 $52,475 $49,161 $3,314 OTHER COSTS $433,629 $260,000 $520,000 $435,000 ($85,000) LGUD RELATED COSTS $107 $27 $650 $650 $- TOTAL WASTEWATER EXPENDITURES $1,226,993 $692,956 $1,424,274 $1,396,689 ($27,585) x Services: Updated based on historical expenses. SCADA telemetry upgrade to 1st net cellular for Forest Lift Station to the WWTP SCADA for cellular communication due to poor line of sight to the water tower. 13 Page 4 x Supplies & Maintenance, Materials, Fixed Charges: Small changes based on historical data. Added $21,506 to 620-62500-310-000 Computer Hardware/Software for spare PLC controllers and cards and batteries (typical expense in this account is ~$8,500). BOD incubator replacement funds of $12,000 added to 620-62500-365-000 WWTP-Lab Equipment Maint. x Debt Service Costs: Decrease in interest costs of current debt service. x Other Costs: Depreciation adjusted based on historical trends. Capital Purchases BOD Incubator Replacement: $12,000 from replacement funds. 14 Page 5 COLLECTION FUND – Summary of Significant Budgetary Changes Revenues Description 12/31/2025 Actual 06/30/2026 Actual 2026 Budget 2027 Budget Change ASSESSMENT LETTER FEES $2,175 $780 $3,200 $3,200 $- SEWER SERVICES $356,303 $90, 489 $273,299 $334,500 $61,201 LATERAL INSPECTION $2,118 $333 $2,500 $2,500 $- LATE PAYMENT FEES $364 $193 $500 $500 $- INTERGOVERNMENTAL CHARGES $- $- $1,750 $20,000 $18,250 INTEREST $50,590 $13,236 $25,000 $27,000 $2,000 SEWER CONNECTION FEES $4,237 $665 $5,200 $5,200 $- IMPACT FEE-DOWNTOWN SEWER MAIN $14,506 $2,325 $12,000 $12,000 $- CAPITAL CONTRIBUTIONS $42,836 $- $250,000 $1,500,000 $1,250,000 TOTAL COLLECTION REVENUES $473,176 $108,024 $575,099 $1,906,550 $1,331,451 x Sewer Services: Currently, there is no rate increase budgeted. Budget is based on historical values and trends. x Intergovernmental Charges: Liberty Grove Utility District No. 1 sanitary sewer televising is planned for 2027. $20,000 was added to 630-47341-000-000 Collection System Maint – LGUD to cover the televising. x Interest: An estimated interest earned based on cash flows and investment expectations. Expenditures Description 12/31/2025 Actual 06/30/2026 Actual 2026 Budget 2027 Budget Change EMPLOYEE COSTS $47,303 $22,219 $55,361 $43,158 ($12,203) SERVICES $10,972 $5,305 $40,195 $33,695 ($6,500) SUPPLIES & MAINTENANCE $119,361 $9,898 $91,675 $111,826 $20,151 MATERIALS $13 $3 $50 $50 $- FIXED CHARGES $4,628 $2,937 $5,871 $5,275 ($596) DEBT SERVICE COSTS $- $- $- $- $- OTHER COSTS $144,650 $70,500 $154,250 $150,250 ($4,000) LGUD RELATED COSTS $2,980 $424 $2,091 $1,868 ($223) TOTAL COLLECTION EXPENDITURES $329,906 $111,104 $349,494 $346,122 ($3,372) x Services, Supplies & Maintenance, Materials, Fixed Charges: Minor adjustments throughout the expenditures. Nothing significant to note. x Other Costs: Increase in depreciation. 15 Page 6 Capital Purchases Sanitary Sewer Camera: $16,000 from operating funds. ST HWY 57 Sanitary Sewer Extension and Lift Station Installation: $1,500,000 new infrastructure capital contribution. Little Sister Lift Station Pump Replacement: $20,000 from replacement funds. 16 Page 1 STAFF REPORT Date: August 25, 2026 To: Sewer and Water Utility Committee Re: 2016 Chevy Silverado-Surplus Declaration Author(s): Megan Barnes, Utilities Director Action(s) Requested: ܆Ordinance܆Resolution܈Motion ܈Receive/File POLICY ISSUE(S) “Should the Sewer and Water Utilities Committee decide the preferred course of action for the sale or disposition of the 2016 Chevrolet Silverado and then direct staff to take that preferred course of action?” BACKGROUND INFORMATION Resolution 388-091818 created the Village of Sister Bay’s Formal Policy Regarding the Disposition or Sale of Surplus Personal Property or Equipm ent. The value of the 2016 Chevrolet Silverado is estimated to be more than $1,000.00, the policy associated with the value is summarized below: As To Surplus Personal Property Or Equipment With a Value Of More Than $1,000.00: In the event that su ch property or equipment can no long er be utilized by any department of the Village, the Village Board shall declare that the item(s) are officially considered “surplus large Village personal property and/or equipment, and the affected oversight committee shall be charged with directing staff to take the preferred course of action with respect to the sale or disposition of it. (Options to be consider ed by the oversight committee are establishing a stated “asking” price and conducting an advertised public sale, listing the item(s) to other municipalities via a sealed bid process with award being made to the highest bidder, trading it in, or donation to a certified no n-profit organization if an identified pu blic purpose will be served.) 17 Page 2 PRIOR ACTION/REVIEW The Utilities 2016 Chevrolet Silverado was planned to be sold as part of the 2026 budget planning process. An estimation was included in the 2026 budget that $10,000 would be recouped from the sale of the 2016 Chevrolet Silverado. Ph otographs of the 2016 Chevrolet Silverado were taken and sent to the Marina and Parks Department to see if they would have any need for the truck. Marina did not have a need for the truck, and no response was received from the Parks Department. The Village Board approved the surplus sale of the 2016 Chevrolet Silverado at the July 21, 2026, Village Board meeting and task ed the Sewer and Water Utility Committee with directing staff to take the preferred course of action with respect to the sale or disposition of the 2016 Chevrolet Silverado. RECOMMENDED ACTION(S) Village staff recommends that the Sewer and Water Utility Committee discuss the options to be considered, and direct staff to take the preferred course of action with respect to the sale or disposition of the 2016 Chevrolet Silverado. If the Sewer and Water Utility Committee were in favor of this policy action, the following motion may be made: “I move to direct staff to take the [preferred course of action] with respect to the sale or disposition of the 2016 Chevrolet Silverado.” ATTACHMENT(S) 1. Resolution 388-091818 (For Reference) 2. 2016 Chevrolet Silverado Photographs 18 19 20 Page 1 Photographs Date: August 25, 2026 To: Sewer and Water Utility Committee Re: 2016 Chevrolet Silverado Photographs Author(s): Megan Barnes, Utilities Director Photographs of the 2016 Chevrolet Silverado: 21 Page 2 22 Page 3 23 Page 4 24 Page 5 25 Village of Sister Bay Sewer and Water Utilities Committee Operations Report Sewer and Water Utilities Committee Meeting August 25, 2026 Capacity Report See the attached report for June and July 2026. Well Permit Status Report 2026 well permit status; see enclosed information Lead & Copper Sampling Lead and copper sampling for 2026 has been completed. Ten service addresses were required to be sampled and analyzed for lead and copper. Customers have been notified of the result, and the DNR certification of consumer notification of the lead and copper results has also been completed. Sludge Tank Aeration Replacement Materials for replacement have been ordered, and the equipment should be delivered by October 1, 2026, or sooner. DNR Lab Evaluation The Sister Bay WWTPs laboratory is scheduled for an on-site evaluation on September 8, 2026. The DNR requires a triennial laboratory evaluation, the last lab evaluation being in 2023. WSLH PT Testing All annual proficiency testing is now completed. Operator Certifications Blok and Oakdale received their Waterworks Operator Certifications in the subclass groundwater. Nelson received a subclass certification in Nutrient Removal: Total Phosphorus which was added to his Wastewater Operator Certification. Hydrant Flushing Annual hydrant flushing has been completed. Operators will move on to annual valve exercising starting in September. Megan Barnes, Utilities Director 26 For: WWTP LGSD #1 Liberty Grove Influent Hauled Sewered Total Sister Bay Flow Sewered Hauled Hydraulic Flow (mgd) 7.505 0.063 6.006 6.069 0.528 0.908 Water Sales Ratios 0.9192 0.0808 WWTP LGSD #1 Liberty Grove Influent Hauled Sewered Total Sister Bay Flow Sewered Hauled SEWERED BOD lbs/day 24031 22089 1942 HAULED BOD lbs/day 3534 231 3303 Total BOD lbs 27565 22320 1942 3303 WWTP LGSD #1 Liberty Grove Influent Hauled Sewered Total Sister Bay Flow Sewered Hauled SEWERED TSS lbs/day 24075 22129 1945 HAULED TSS lbs/day 3113 201 2912 Total TSS lbs 27187 22330 1945 2912 Sister Bay LGSD #1 Liberty Grove Purchased Flow Capacity in mgd 0.62 0.059 0.266 Monthly Daily Average 0.202 0.018 0.030 Percent of used Capacity 32.63% 29.83% 11.38% Purchased BOD Capacity in lbs/day 905 105 1359 Monthly Daily Average 744 65 110 Percent of used Capacity 82% 61.64% 8.10% Purchased TSS Capacity in lbs/day 1076 101 999 Monthly Daily Average 744 65 97 Percent of used Capacity 69.18% 64.20% 9.72% Sister Bay Sister Bay Sister Bay VVillage of Sister Bay Utilities P.O. Box 91, Sister Bay, WI 54234 Phones: Voice 920-854-2246 Fax 920-854-7602 Cell 920-421-0254 SSister Bay, Liberty Grove Utility District, and Town of Liberty Grove Treament Plant Capacities Calculations June-2026 27 For: WWTP LGSD #1 Liberty Grove Influent Hauled Sewered Total Sister Bay Flow Sewered Hauled Hydraulic Flow (mgd) 10.320 0.110 7.978 8.088 0.848 1.384 Water Sales Ratios 0.9039 0.0961 WWTP LGSD #1 Liberty Grove Influent Hauled Sewered Total Sister Bay Flow Sewered Hauled SEWERED BOD lbs/day 32527 29401 3126 HAULED BOD lbs/day 4679 356 4323 Total BOD lbs 37206 29757 3126 4323 WWTP LGSD #1 Liberty Grove Influent Hauled Sewered Total Sister Bay Flow Sewered Hauled SEWERED TSS lbs/day 32722 29577 3145 HAULED TSS lbs/day 3924 288 3635 Total TSS lbs 36646 29866 3145 3635 Sister Bay LGSD #1 Liberty Grove Purchased Flow Capacity in mgd 0.62 0.059 0.266 Monthly Daily Average 0.261 0.027 0.045 Percent of used Capacity 42.08% 46.38% 16.78% Purchased BOD Capacity in lbs/day 905 105 1359 Monthly Daily Average 960 101 139 Percent of used Capacity 106% 96.03% 10.26% Purchased TSS Capacity in lbs/day 1076 101 999 Monthly Daily Average 963 101 117 Percent of used Capacity 89.54% 100.43% 11.74% Sister Bay Sister Bay Sister Bay VVillage of Sister Bay Utilities P.O. Box 91, Sister Bay, WI 54234 Phones: Voice 920-854-2246 Fax 920-854-7602 Cell 920-421-0254 SSister Bay, Liberty Grove Utility District, and Town of Liberty Grove Treament Plant Capacities Calculations July-2026 28 MEMO To: Sewer and Water Utilities Committee From: Kara Kroll, Utilities Clerk Subject: 2026 Well Testing & Permitting Date: August 21, 2026 Wells inside the service area: Written notifications were sent to well owners on May 1 st, July 1st and August 1st Total wells due for testing inside the service area = 16 Wells currently in compliance 3 Wells in the sampling process 6 Wells with no response 6 Wells abandoned (waiting for documents) 0 Wells with proof of abandonment 1 Wells waiting to be abandoned 0 29