Min10272025budgetwksp4

Submitted for approval 11/10/2025 Village of Fox Crossing Special Meeting of the Board of Trustees – Budget Workshop #4 Municipal Complex – Arden Tews Assembly Room Monday, October 27, 2025 – 5:00 p.m. – 9:00 p.m. Minutes 1. Call to Order President Dale Youngquist called the workshop to order at 5:00 p.m. Clerk Darla Salinas noted those present including: President Youngquist, Trustee Michael Van Dyke, Trustee Kris Koeppe, Trustee Timothy Raddatz , Trustee Kate McQuillan , Trustee Deb Swiertz, Trustee Barbara Hanson, and Village Manager Jeffrey Sturgell, Finance Director Jeremy Searl, Community Development Director George Dearborn, Fire Chief Todd Sweeney, Police Chief Scott Blashka, Police Captain Tim Callan, Public Works Director Joe Hoechst, Utility Superintendent Mark Schmitt, and Director of Parks & Recreation Amanda Geiser. There were no attendees. 2. Presentation of Departmental Budgets Bubble List / Miscellaneous Items Director Searl advi sed there is a request from Trustee Van Dyke to discuss the crack sealing program in more detail due to this program falling behind. Trustee Van Dyke’s suggestion was to fund this account with enough of an increase to get fully caught up in 2026, as not doing this could lead to full road replacements earlier than normal which will be much more costly overall. Director Searl recommended increasing interest income as that is currently very conservatively budgeted to pay for this increase in expense. Director Hoechst stated he doesn’t have an exact number ready to get fully caught up but is thinking an additional $150,000.00 on top of the $50,000.00 that was already budgeted would get the Village caught up. Trustee Van Dyke as ked if we could get a quantity discount for doing more work next year. Director Hoechst advised there is no quantity discount, he simply tells the bidders the amount the Village is willing to spend , and whichever bidder comes in with the lowest cost per pound will win the bid to spread our funds the farthes t. He would then give the contractor a list of streets by priority, and they work to get as far as they can with the funds provided. He stated he foresees asking for closer to $70,000.00 per year going forward to stay current. Director Searl stated he will plan for these funds to come out of interest income this year and will only use fund balance if necessary. Manager Sturgell stated he was recently contacte d to participate in a meeting with the newly organized Little Lake Butte des Morts Association and stated he is anticipating a request for $5,000.00 to kickstart the association. He advised the Cities of Menasha and Neenah have already provided this funding, so he is expecting to receive this request soon. He wanted to ask the Board to place this in the stormwater budget, in case the Village decide s to participate with this association. He reminded the Board about previous requests from residents on Stroebe Island to provide funding or assistance with aquatic planting, algae mitigation, etc. He stated he will come back to the Board after this meeting with more information and a formal request to provide funds if that is the direction the Village wants to go. The Board approved adding this expense into the stormwater budget. Village Capital Projects (Continued) Manager Sturgell continued the Village Capital Projects presentation for the upcoming year: Irish Road North Pond (TID #3) Land Acquisition for $200,000.00 offset with TID #3 cash on hand. Director Searl checked the TID Agreement, and the land acquisition is not included , so it is not Special Village Board Budget Workshop – October 27, 2025 2 guaranteed to happen. Trustee Van Dyke asked if we would be better off purchasing and expanding the existing pond on Secura’s property. Manager Sturgell advised this was previously discussed however this is in a separate water shed area and will not accomplish the Village’s goal to meet DNR criteria. Clayton Avenue Final Asphalt Layer (TID #5) on East Shady Lane north 2,795 feet for $30,000.00 from the Water Utility (offset with prior borrowing) and $30,000.00 from the Sewer Utility (offset with prior borrowing) for a total of $60,000.00. This would be for the final layer of as phalt remaining from the Clayton Avenue Water and Sanitary Sewer Main Installation which was constructed in 2025. Stormwater Capital Projects Ehlers Road Culvert Rehabilitation from 1051 to 1088 Ehlers Road which is a rollover as this project did not get completed in 2025 for $120,000.00 (offset with prior borrowing). Schildt Park Pond construction for $1,200,000.00 ($25,000.00 offset with prior borrowing). This is the last big regional stormwater pond that needs to be completed to meet Village requirements. Palisades Storm Sewer Extension from Valley Road to Baldwin Court for $120,000.00. This is a Village only project but will be in conjunction with a larger project with Winnebago County. This was an agreed upon project with WisDOT and the City of Menasha. Sand Point Pond Bird Grid and Fence for $150,000.00 . The bird monitoring study is being done this year and if the results come back with a finding that the Village needs bird mitigation in this area, we will need to have funds in the budget to complete the grid and fence. This is not something we’re looking to do but we need to be prepared for that result. Director Hoechst stated Outagamie County will want th e grid and fence done sooner rather than later, and noted the fencing is an Outagamie County requirement. Jacobsen Road / I -41 Overpass Stormwater grate and trail improvement/wall reconstruction for $125,000.00. Improving this trail will make it safer as this grate and wall are deteriorating. Director Hoechst advised the WisDOT viewed this area and stated the trail is the Village ’s responsibility even though it is in the DOT’s right -of-way per a State Municipal Maintenance Agreement. Utility Capital Projects Riverview Court fire hydrant relocation for $20,000.00 out of operations. Currently, the hydrant is located in the middle of the cul-de-sac grassy area, and they are looking to relocate this hydrant as the grassy area will be eventually removed and paved. This area is becoming more and more work to keep maintained as it is a responsibility of the Riverview Court owners, and the desire to maintain this area has dwindled. Chief Sweeney confirmed the Fire Department will still have the access they need to service this area. Emergency Backup Generator at Plant #4 and Utility Offices for $850,000.00 which the Board authorized ordering at the May 19th Village Board Meeting (offset with prior borrowing). Tower #3 (Haase Street) repainting for $300,000.00. Well #3 Rehabilitation (started in 2025) for $142,000.00 offset with fund balance. Special Village Board Budget Workshop – October 27, 2025 3 3. Recess for Regular Village Board Meeting At 5:54 p.m., MOTION: Trustee Swiertz, seconded by Trustee Van Dyke to recess this special meeting until completion of the Regular Village Board Meeting. Motion carried via voice vote. 4. Reconvene Upon Completion of Regular Board Meeting At 6:55 p.m., MOTION: Trustee Van Dyke, seconded by Trustee Koeppe to reconvene the special meeting. Motion carried via voice vote. 5. Continue Presentation of Departmental Budgets Wastewater Utility Director Searl advised there is an increase in revenue due to growth in water consumption with the TID #5 apartment complexes and other new housing in the Village. It’s possible there could be more growth factored in next year with add itional TID #5 apartm ents and Copperstone Sen ior Living, however we’ve chosen to budget conservatively. There is no proposed rate increase in this utility, and noted previous year increases included 3% in 2024, 5% in 2023, and a partial year increase at 5% for 2022. Director Searl gave a recap of settlement funds available in this utility. In 2022, the Village used funds for various projects related to the WisDOT Interstate 41 project . In 2023, funds were budgeted for our portion of the Brighton Beach Road project, and the 2024-2025 budget included $1.95 Million Dollars for the Valley Road project. If all these projects came in exactly on budget , we will have approximately $1,080,000.00 remaining in this utility’s settlement funds. There is a s mall increase in interest income in order to balance the budget this year. We have budgeted well below actual figures for the past three years, so there is no concern about attaining this amount in revenue . This budget includes no use of depreciation funds and no use of savings/fund balance which is the reason for no requested rate increase this year. Director Searl advised there are no substantial changes in payroll . The wage contingency is $35,000.00, which is the same as last year . In the 0210 Professional Services account there is a decrease due to one-time items last year including the Brighton Beach lift station, impact fee study, and rollover of administrative software training . The 0211 Computer License and Maintenance account shows a carryover from the IT disc ussion as this is the sewer allocation. The 0218 Non- Operating Lateral Expense account includes $5,000.00 as a base amount as we do not have any capital projects planned for this utility in 2026. The 0340 Operating Supplies account is primarily for treatment plant expenses which show a combined increase of $55,000.00 (expenses to Fox West increased by $82,000.00 and e xpenses to Neenah Menasha decreased by $26,000.00) . Neenah Menasha Sewerage Commission has a lot of big projects coming up including updating facilities and adding phosphorus treatment, so we are expecting some larger expe nses to hit our budget in the coming years. The 0540 and 0541 Depreciation accounts remain consistent with last year. The 0610 and 0620 Debt Service accounts are essentially flat year to year, with the next few years being consistent at $1.1 Million to $1.2 Million , with no debt issuance in the proposed budget . Director Searl noted this would have been substantially higher if not for use of settlement funds in this budget. The revenue bond covenants call for a DSCR of 1.25 of operating income compared to the subsequent year’s debt payments, which is how investors view the utility’s health in generating sufficient cash flow to cover debt payments. The 2025 budget was 1.47 and 2026 budget is 1.42, and he noted we historically perform .10 to .20 above budget as we budget conservatively. Debt Service Coverage calculations are based on actual figures, not budgeted figures, so it’s important to stay conservative with budgeting to continue outperforming the budget. The 0801 Capital Special Village Board Budget Workshop – October 27, 2025 4 Reserve account includes $50,000.00 for manhole rehabilitation which is an “if needed” expense and $95,000.00 to replace the generator at the Foster Street lift station which is 22 years old. Water Utility Director Searl advised the Water Utility budget was v ery challenging this year with increases in expenses far outpacing growth in revenues. A rate increase in this utility is imperative to balance this budget. In revenue, there is some growth from normal operations and potential growth in 2026, therefore overall, an increase of 1% was included for expected growth of 85 -95 units for $90,000.00 in additional revenue. The proposed budget includes the assumption of submitting a Simplified Rate Case with the PSC if the Board provides approval. Based on 2024 rate results and projected 2025 results, Director Searl feels the Village will receive the ma ximum rate increase of 3% from this simplified rate case . He explained that t his is a simpler program which is allowed since we completed a full rate case within the last five years and the Village is not earning the allowed rate of return. This process does not require a public hearing, so they are conservatively budgeting for this rate increase to be in place b y March. The last rate increase was effective in February 2023 and was due to a Purchased Water Adjustment Clause from when Menasha Utilities increased their rates. He stated they have opened a new full rate case application and have started compiling information but have decided to make 2026 the test year so we cannot submit until after 2025 numbers are finalized. The Village Board approved moving forward with a simplified rate case with the PSC. In other revenue, rental income comes from the cell tower leases with TMobile (formerly Sprin t) which are set to expire in 2025, however they are currently in negotiations, so we are planning to continue to receive income from these towers. They have also increased rent to the sewer utility for 2340 American Drive from $20,000.00 to $25,000.00 and a one -time payment from Sewer for the space review /needs analysis. Special assessment revenue and developer contributions are directly related to capital projects and vary a lot from year to year. The only developer contribution expected is for new water meters for the Town of Clayton for $40,000.00. Last year, we chose to increase our reliance on interest income by appr oximately $100,000.00 because we ’ve needed to rely on this to balance the budget. This proposed budget includes no use of depreciation funds. The use of fund balance is to offset the following projects: $117,000.00 for Well #3 rehabilitation, $25,000.00 to install a mixer in Tower #3, $10,000.00 to purchase a new pressure washer, $8,400.00 to replace hydrant flag s on the West Side, $14,000.00 to refurbish/restructure the office space at the utility building, $175,000.00 for 2026 meter replacement program, $43,000.00 for plant #3 Mag meters, $300,000.00 for Tower #3 repainting, and $20,000.00 to move the fire hydrant on Riverview Court. The carryover of debt is for the generator which was approved earlier this year. Director Searl stated there are no significant changes in payroll. There was a requested increase of 56 additional overtime hours ($3,087.00) and in increase in the rate premium for construction site inspections from $0.25/hour to $0.50/hour ($345.00). The combined wage contingency is set at $50,000.00, which is the same as last year. The 0210 Professional Services account includes a total increase of $22,000.00. The previous year included an increase due to additional acidic cleaning maintenance for up to three wells at $36,000.00 per well, which is included in this budget as well. There is also a rollover from fund balance for the Well #3 re habilitation. The proposed budget includes $15,000.00 for lead/copper testing which is required every three years and $9,000.00 for water rate study support. The 0211 Computer License and Maintenance account is the carryover from the IT discussion for water’s allocation. The 0223 Sewer/Water/Storm account is primarily for the purchased water from Menasha Utilities on the East Side to supplement our wells which is an increase of $80,500.00 overall, with $80,000.00 of that increase coming from p urchased water. Director Searl reminded the Board that at $6.35/gallon from Menasha Utilities , we are losing $0.66/gallon which is a gross loss and is one of the biggest factors that affect the success of the water utility. Special Village Board Budget Workshop – October 27, 2025 5 Director Searl advised the 0309 Credit Card Fees account has increased due to more people using the online credit card system. The 0313 Printing account shows a decrease due to the large 2025 lead mailing that was required by the DNR and EPA. The 0340 Operating Supplies account shows an increase primarily due to purchase of a p ressure washer, an operating nut turning kit, and replacement of hydrant flags on the West Side. There is no zeolite replacement in 2025 or 2026 , but we will most likely need this in the 2027 budget. The 0353 Equipment Maintenance account shows a decrease of $90,000.00 due to different maintenance projects being done this year and cuts to the base amounts due to actuals history. The prior year included $70,000.00 to replace booster pumps at Plants 2 and 3, and this year includes $25,000.00 for a new mixer at Tower 3 from fund balance. The 0394 Salt account is budgeted to purchase 3,400 tons at $155.00/ton (which is a decrease of $13.00/ton due to the very large rate decrease ). The budget has ranged from 2,900 to 3,300 tons in recent years. The 0396 Sodium Silicate account shows an increase of $9,000.00 due to cost increases and usage for several ye ars where the budget has been lower than actuals. The 0590 Other Fixed Charges account is the PILOT (payment in lieu of taxes) paid to the general fund, which is the same as last year . The 0540 and 0541 Depreciation accounts continue to budget no funding for depreciation. Director Searl stated t he 0610 and 0620 Debt Service accounts show a budget increase of $134,000.00 for a total of just over $2 Million Dollars assuming no borrowing in this utility in 2026 and 2027. The 0801 Capital Reserve account includes the capital improvement projects for this utility that were discussed earlier this evening as well as $175,000.00 for meters which is the same as last year but is an increase from previous years due to the increasing cost of meters and encoders and the department’s effort to replace more meters per year. This account assumes $40,000.00 for Town of Clayton’s meters that they will be fully responsible for. Trustee McQuillan asked if residents are charged when their meter is replaced. Director Hoechst advised this is part of the base charge that all residents pay on every bill, so these charges are not billed to the consumer when a meter is replaced, assuming no tampering has been done to the meter. He also advised that water purchased from Menasha Utilities has been trending down a bit, and he credits this to t he Utility Department staying on top of water leaks/breaks. Trustee Raddatz asked if it would be possible to discontinue purchasing from Menasha Utilities and fully supply the East Side from our own wells. Manager Sturgell stated this is part of a much larger discussion that needs to take place at a workshop, along with a few other outstanding items including the Police Department ex pansion and general operations issues regarding wages, staffing, etc. He stated he is looking to schedule a longer workshop around February to discuss these issues. Director Searl advised the 0880 Debt Issuance Costs account is a special item that is not normally able to be used, however with no debt being issued in this utility, we are able to use this one-time offset to balance this year’s budget. This is a non-cash asset that helps balance the budget but does not help cash flow. There are no purchases planned in the Equipment Replacement Fund in 2026. A few items were planned to be replaced this year; however, they have been pushed a couple years. 6. Adjourn At 8:10 p.m., MOTION: Trustee Koeppe, seconded by Trustee Van Dyke to adjourn the special meeting. Motion carried via voice vote. Respectfully submitted, Darla M. Salinas, CMC, WCMC Village Clerk Note: These minutes are not to be considered official until acted upon at an upcoming regular meeting, therefore, are subject to revision.