2026-04-27 FINANCE Committee Minutes

FINANCE/PERSONNEL AD HOC COMMITTEE MINUTES MONDAY, APRIL 27, 2026 5:00 PM, ALLOUEZ VILLAGE HALL CALL TO ORDER/ROLL CALL Chairperson Harris called the meeting to order at 5:02 p.m. Present: Beauchamp, Genrich, Harris, Marsch, and March Also Present: Gehin MODIFY/ADOPT AGENDA Genrich/Marsch moved to adopt the agenda as presented. Motion carried. ANNOUNCEMENTS J. Beauchamp - The rate increase for the Water Utility is still in the hands of the PSC, the regulatory authority. SANITARY SEWER UTILITY RATE INCREASE J. Beauchamp - Sanitary sewer utility charges consist of a fixed and a variable charge. The fixed charge is billed based on the size of the water meter and covers a portion of the NEW Water capital charges and principal and interest payments due on borrowed funds used for sanitary sewer utility infrastructure reconstruction. The variable charge is based on the volume of water used and covers the remaining fixed costs as well as NEW Water variable (volume-based) charges and all other costs of operating and maintaining the sanitary sewer utility. To maintain adequate cash flows, a rate increase of $2.76 monthly for a customer using an average volume of 3,000 gallons of water per month is being proposed. Discussion: - The revenue requirement has increased, and we are proposing an increase of $250,000. - The consensus of the Village Board was to implement yearly rate increases that started in 2024. - NEW Water increase between 2026 versus 2025 actual was 19.4%. - Hoping to get rate increases effective June 1st, 2026. - When setting the rates we look at the fixed costs and then variable costs. 35% of the fixed costs were shifted to the variable costs to keep the monthly fee down for those who use less water. - The current fixed charge per month (on a ¾” meter) is $13.50 and the proposed amount is $14.40, which is a $.90 increase. The current variable charge per 1,000 gallons is $8.46 and the proposed amount is $9.08, which is a $.62 increase. Harris / Genrich moved to bring the proposed sanitary sewer rate increase to the May 19th Village Board meeting. Motion carried. STORM WATER UTILITY RATE INCREASE J. Beauchamp - Storm water ERUs increased to $10.50 per month in 2024. Prior to this, the Village contracted for a study of all impervious surface areas to determine that all areas were accounted for and billed accordingly. While some adjustments were made, there was no significant change in the total number of ERUs billed. With little to no growth in the total number of ERUs, the rate per ERU needs to increase to allow for sufficient cash flows to fund the storm water utility operations and maintenance costs as well as debt service for financing storm water utility infrastructure projects. An increase in the ERU rate from $10.50 to $11.50 is being proposed. This results in an increase of $1.00 per month for parcels with a single-family home. Discussion: - We had a rate of $7.50 that was implemented in 2015. When the new director started in Public Works, he wanted to be sure that we were capturing all of the impervious surface areas to determine that all areas were accounted for and billed accordingly. - In June of 2024 we did a rate increase of $7.50 per month to $10.50 per month per ERU. We are now looking to increase to $11.50 per month. - The fund was going into the negative in 2024. We made the increase and also transferred some ARPA funds into the account to bring about a positive cash flow. The board then wanted to wait a year, look at the account and then increase to $11.50 in 2026. - The Water Clerk put together comparables of surrounding municipalities. Harris / Marsch moved to bring the proposed storm water utility rate increase to the May 19th Village Board meeting. Motion carried. NEXT MEETING DATE AND AGENDA ITEMS May 18, 2026, at 5:00 p.m. - Water utility proposed rate increase ADJOURNMENT Marsch / Genrich moved to adjourn at 5:58 p.m. Motion carried. Minutes submitted by Kim Siudzinski, Deputy Clerk