20260721 Special Board Meeting Packet

Post Date: July 17, 2026 Village of Somers 7511 12th Street Somers, WI 53171 Village Special Board Meeting Agenda Tuesday, July 21, 2026 4:30 p.m. Village Board Meeting: Item # 1 Call to order 2 Pledge of Allegiance 3 Citizens Comments 4 Review and discuss the financial management plan. 5 Possible action on the submission of the Public Services Commission (PSC) Rate Case application: a) Payment in Lieu of Taxes (PILOT) fee b) Conversion to a direct public fire protection fee 6 Adjourn I hereby certify that as the designee of the chief elected official of the Village of Somers, I posted this notice of the July 21 st, 2026 Special Village Board Meeting Agenda in 1 public place & on the Village website. Dated this 17 th day of July, 2026 Wendy Burnette , Clerk-Treasurer Requests from person with disabilities who need assistance to participate in this meeting should be made to the Clerk’s Office at 262 - 859-2822 with as much notice as possible. Notice is hereby given that members of the Village Board may participate telephonically. Notice is hereby given that members of the Town Board may be in attendance for the sole purpose of gathering information. A quorum may be present. However, no Town Board action will be taken. 1/18 VILLAGE OF SOMERS SPECIAL VILLAGE BOARD MEETING ITEM MEMORANDUM MEETING DATE: July 21, 2026 TO: Village President Stoner and Village Trustees PREPARED BY: Jim Hurley, Village Administrator REVIEWED BY: Kevin Poirier, Assistant Administrator AGENDA ITEM: #4-5 Possible action on the submission of the Public Services Commission (PSC) Rate Case application: a. Payment in Lieu of Taxes (PILOT) fee b. Conversion to a direct public fire protection fee BACKGROUND: In May, Ehlers presented an analysis of fire/EMS staffing, and the Village’s levy limit. The Board discussed the Village’s use of abated debt, and projected deficit going forward. In June, Ehlers updated its analysis and discussed options to improve the financial stability of the Village. Particularly, we discussed possibly closing some of the TIDs in the near future, a payment in lieu of taxes (PILOT), and conversion to a direct public fire protection (PFP) fee. Both fees require the approval of the public services commission (PSC). Last week, Ehlers and staff reviewed a presentation with options for a PILOT and PFP, and estimated increases for ratepayers. Additional information was available about a direct recycling fee, and the estimated cash flow of the TIDs to support funding the $3.8M Pike Creek Lift Station improvement. At the direction of the Board, a special meeting was scheduled to discuss and take possible action on a PILOT or PFP direct fee conversion. If the Board would like to consider, then the fees must be submitted with the rate case application to the PSC by July 31. SUGGESTED ACTION/ACTION REQUESTED/COMMENTS: 2/18 In the event that the Village Board agrees, a suggested motion to approve would be as follows: “Motion to approve submission of the Rate Case application to the Public Service Commission of Wisconsin with a payment in lieu of taxes (PILOT) amount of XX, and conversion to a full public fire protection fee for water and non-water customers as presented.” ATTACHMENTS: Financial Management Plan & Water Rate Update 3/18 Village of Somers Financial Management Plan & Water Rate Update July 14, 2026 4/18 2 Operating Budget Deficit Actual/Estimated Operating Deficit 2026 540,805 2028 618,832 2030 833,755 *Currently using fund balance or abated debt capacity to addres s the defi ci t. 5/18 3 Proposed TID Closure Analysis and Levy Limit Benefit Represents the amount of existing incremental value shown in the year that each TID may close Proposed Year of Closure TID Closure 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 TID 1 - - - - - - - 123,834,000 - - TID 2 - 143,496,100 - - - - - - - - TID 3 - - - - 159,916,000 - - - - - TID 4 - - - - - - - - - - TID 5 - - - - - - - - - - TID 6 - - - - - - - - - - 6/18 4 Levy Limit Analysis – TID 2 Closure Levy Year 2024 2025 2026 2027 2028 2029 Calendar/Budget Year 2025 2026 2027 2028 2029 2030 Line Actual Projected Projected Projected Projected Projected I Will Close a TID Before April 15 in This Calendar Year No Yes No Yes No No Enter Projected TID Increment Value in Shaded Cell 143,496,100 Enter Projected Total TID OUT EV in Closure Year in Shaded Cell 1,233,691,152 Terminated TID % (50% of increment value as a percentage of TID OUT EV) #DIV/0! 0.07% #DIV/0! 5.82% #DIV/0! #DIV/0! Applied to Prior Year Adjusted Actual Levy #DIV/0! 2,459 #DIV/0! 204,866 #DIV/0! #DIV/0! Net New Construction Enter Assumed Net New Construction Percentage 13.363% 2.473% 2.000% 2.000% 2.000% 2.000% Applied to Prior Year Adjusted Actual Levy 396,991 83,286 69,071 70,453 75,959 77,478 Less: Next Year's Personal Property Aid (35,851) (35,851) (35,851) (35,851) (35,851) (35,851) Levy Limit Before Adjustments 3,331,963 3,417,708 3,486,779 3,762,098 3,838,057 3,915,535 Line 5 - 6 Adjustments •$204,866 (in current dollars) is estimated one time levy limit increase for closing TID 2 7/18 5 Other Alternative Revenues Reviewed the conversion of garbage collection to a direct charge and concluded it would not increase levy capacity Converting recycling to a direct charge would help free approximately $218,000 in levy capacity 8/18 6 PILOT (Option 1): Maximum Amount •$535,296 is the full PILOT Payment •26.70% = Rate increase with PILOT •Rate Inc. 100% caused by PILOT 9/18 7 PILOT (Option 2): 50 Percent •$267,648 is 50% allocated to PILOT •13.31% Rate Increase due to PILOT 10/18 8 Option 3 (PILOT): Percentage Based • $235,530 is 44% allocated to PILOT. Calculated % = number of total Village parcels as a % of total Water Customers. • 11.70% rate increase due to PILOT 11/18 9 PILOT Comparison (Option 1, 2, and 3) 12/18 10 217k PFP Conversion Estimated Impact PFP Proposed Current 217,077.00$ Additional Conversion Quarterly Annual Quarterly Plus Current Meter Size Charge Totals Rate Rate Rate Rates 5/8" $0.00 647 12.00 $ 74.44 18.61 30.61 $ 3/4" $0.00 290 12.00 $ 74.44 18.61 30.61 $ 1" $0.00 426 30.00 $ 186.11 46.53 76.53 $ 1 1/4" $0.00 0 44.00 $ 275.44 68.86 112.86 $ 1 1/2" $0.00 54 60.00 $ 372.22 93.05 153.05 $ 2" $0.00 53 96.00 $ 595.55 148.89 244.89 $ 3" $0.00 3 180.00 $ 1,116.65 279.16 459.16 $ 4" $0.00 3 300.00 $ 1,861.09 465.27 765.27 $ 6" $0.00 2 600.00 $ 3,722.17 930.54 1,530.54 $ Notes: 1) This is based on the most recent count from the Village, this does not include non-customers. 13/18 11 PFP Impact to Sample Resident Water Bills • PFP Notice only shows water bill change and not total cost of water change • Non-customers are not included Quarterly Water Bill (Current) $74.83 $0.00 $0.00 Quarterly Water Bill (After Increase) 0 $94.81 $94.81 Water Bill PFP $12.00 $30.61 $30.61 Water Bill Charges $86.83 $125.42 $125.42 $ over Current Water Bill $38.59 % over Current Water Bill 44% Quarterly Levy PFP $17.67 $0.00 Current Cost of Water $104.49 $125.42 $125.42 $ over Current Cost of Water $20.92 % over Current Cost of Water 20% Quarterly Utlity Bill Comparison Current with PFP on Levy What Communication from PSC will Reflect Total Change in Water Charges 14/18 12 217k PFP Conversion Estimated Impact - Non-Customers Included PFP Proposed Current 217,077.00$ Additional Conversion Quarterly Annual Quarterly Plus Current Meter Size Totals Rate Rate Rate Rates 5/8" 2,438 12.00 $ 46.12 11.53 23.53 $ 3/4" 290 12.00 $ 46.12 11.53 23.53 $ 1" 426 30.00 $ 115.29 28.82 58.82 $ 1 1/4" 0 44.00 $ 170.64 42.66 86.66 $ 1 1/2" 54 60.00 $ 230.59 57.65 117.65 $ 2" 53 96.00 $ 368.94 92.24 188.24 $ 3" 3 180.00 $ 691.77 172.94 352.94 $ 4" 3 300.00 $ 1,152.95 288.24 588.24 $ 6" 2 600.00 $ 2,305.90 576.47 1,176.47 $ Notes: 1) This is based on the most recent count from the Village, this includes water customers and non-customers 15/18 13 PFP Impact to Sample Resident Water Bills (Includes Non-Customers) • PFP Notice only shows water bill change and not total cost of water change • Includes both water utility customers and non-customers Quarterly Water Bill (Current) $74.83 $0.00 $0.00 Quarterly Water Bill (After Increase) 0 $94.81 $94.81 Water Bill PFP $12.00 $23.53 $23.53 Water Bill Charges $86.83 $118.34 $118.34 $ over Current Water Bill $31.51 % over Current Water Bill 36% Quarterly Levy PFP $17.67 $0.00 Current Cost of Water $104.49 $118.34 $118.34 $ over Current Cost of Water $13.84 % over Current Cost of Water 13% Quarterly Utlity Bill Comparison Current with PFP on Levy What Communication from PSC will Reflect Total Change in Water Charges 16/18 14 • Village will need to provide direction by JULY 31, 2026 on:  PILOT payment  Public Fire Protection Charge Conversion • Water Rate Application filed with the PSC  PSC auditor and rate analyst assigned Water Rate Case Timeline 17/18 15 Questions? 18/18