Village Board Meeting — Agenda Packet

VILLAGE OF WILLIAMS BAY 250 Williams Street | PO Box 580 | Williams Bay | WI | 53191 | vi.williamsbay.wi.gov Phone: 262-245-2700 NOTICE VILLAGE BOARD OF TRUSTEES MEETING MONDAY, MAY 4, 2026 AT 6:30 PM Village Hall Council Room 250 Williams Street Williams Bay, WI 53191 The meeting will be live-streamed on the Village of Williams Bay's YouTube, which can be found here: https://youtube.com/live/rUCgtMm9zdM?feature=share AGENDA The following agenda items may be considered for Discussion, Consideration, or Action I. Call to Order II. Roll Call III. Pledge of Allegiance IV. Meeting Decorum A. Meeting Decorum. According to Robert's Rules of Order, meeting decorum means maintaining respectful and orderly behavior during a discussion, including addressing the chair to speak, staying relevant to the topic at hand, avoiding personal attacks, and generally adhering to courteous conduct while debating issues; essentially, ensuring that discussions are focused and civil, with only one person speaking at a time when recognized by the chair. Violators of meeting decorum will be excused from the meeting. V. Minutes A. Village Board Meeting Minutes of April 20, 2026 VI. Public Comments A. Public Comments Responses - Responses to Public Comments from the Previous Village Board Meeting are included in the Meeting Packet Materials Under this Agenda Item B. Individual public comments will be limited to two (2) minutes maximum. If your comments align with other comments before you, please consider stating that you are in agreement with those comments. The public may speak on any item that is not included on this agenda as a "Public Hearing or Forum." Anyone who wishes to comment should identify himself or herself and provide his or her local address. Board members may discuss any matter raised by the public. However, the Board will refrain from extensive dialogue and should not take action on matters raised by the public during a public comment period. Referrals to committees or staff members might be made. Members may ask the commenter to clarify his or her remarks. The Board President or the presiding officer will maintain control of the meeting. VII. Presentation of accounts and petitions Page 1 of 133 A. Payroll ending 04-17-2026 in the amount of $57,222.47 B. Accounts Payable Unpaids dated 05-01-2026 in the amount of $95,600.41 C. Accounts Payable Prepaids Dated 04-21-2026 in the amount of $272.00 VIII. Committee Reports A. Finance & Personnel, Chair - Trustee Wright 1. Presentation by Baker Tilly and Acceptance of the Village of Williams Bay 2025 Audit and Reporting and Insights IX. Public Comments A. Individual public comments will be limited to two (2) minutes maximum. If your comments align with other comments before you, please consider stating that you are in agreement with those comments. The public may speak on any item that is not included on this agenda as a "Public Hearing or Forum." Anyone who wishes to comment should identify himself or herself and provide his or her local address. Board members may discuss any matter raised by the public. However, the Board will refrain from extensive dialogue and should not take action on matters raised by the public during a public comment period. Referrals to committees or staff members might be made. Members may ask the commenter to clarify his or her remarks. The Board President or the presiding officer will maintain control of the meeting. X. Other Items A. Emergency Medical Services Week 2026 Proclamation B. National Police Week 2026 Proclamation C. Discussion and Possible Action on an Application From Chippewa Enterprises, LLC (Resort) for the Installation of Three (3) New Piers at WOP 00091, WOP 00092 and WOP 00093. XI. Adjournment Requests from persons with disabilities, who need assistance to participate in this meeting or hearing, should be made to the Village Clerk’s office in advance so the appropriate accommodations can be made. Posted: 05/01/2026 5:00 PM Page 2 of 133 VILLAGE OF WILLIAMS BAY 250 Williams Street | PO Box 580 | Williams Bay | WI | 53191 | vi.williamsbay.wi.gov Phone: 262-245-2700 UNOFFICIAL MINUTES VILLAGE BOARD MEETING 4/20/2026 MEETING MONDAY, APRIL 20, 2026 AT 6:30 PM VILLAGE HALL COUNCIL ROOM 250 WILLIAMS STREET WILLIAMS BAY, WI 53191 THE MEETING WILL BE LIVE-STREAMED ON THE VILLAGE OF WILLIAMS BAY'S YOUTUBE, WHICH CAN BE FOUND HERE: HTTPS://YOUTUBE.COM/LIVE/_VQQ6_NPHJC?FEATURE=SHARE I. Call to Order President Jaramillo called the meeting to order at 06:30pm. II. Roll Call Present: President Adam Jaramillo, Trustees George Vlach, Lowell Wright, Robert Umans, Steven Russell, Mary Bartholomew, Susan Franzen Also Present: Administrator David Lothspeich, Police Chief Justin Timm, Village Engineer Doug Snyder, Public Works Director Wayne Edwards, Treasurer Jennifer Thiele, Clerk Tina Kolls III. Pledge of Allegiance The Pledge of Allegiance was recited by all. IV. Meeting Decorum A. Meeting Decorum. According to Robert's Rules of Order, meeting decorum means maintaining respectful and orderly behavior during a discussion, including addressing the chair to speak, staying relevant to the topic at hand, avoiding personal attacks, and generally adhering to courteous conduct while debating issues; essentially, ensuring that discussions are focused and civil, with only one person speaking at a time when recognized by the chair. Violators of meeting decorum will be excused from the meeting. V. Minutes A. Village Board Meeting Minutes of April 6, 2026 The motion to the Village Board Meeting Minutes of April 6, 2026 was initiated by Trustee Umans and seconded by Trustee Bartholomew. Unanimously carried. VI. Public Comments Gunnar Olsen, 523 Woodlawn Dr, spoke regarding the EMS building, stating he was not happy with the location. A. Public Comments Responses - Responses to Public Comments from the Previous Village Board Meeting are included in the Meeting Packet Materials Under this Agenda Item Page 3 of 133 B. Individual public comments will be limited to two (2) minutes maximum. If your comments align with other comments before you, please consider stating that you are in agreement with those comments. The public may speak on any item that is not included on this agenda as a "Public Hearing or Forum." Anyone who wishes to comment should identify himself or herself and provide his or her local address. Board members may discuss any matter raised by the public. However, the Board will refrain from extensive dialogue and should not take action on matters raised by the public during a public comment period. Referrals to committees or staff members might be made. Members may ask the commenter to clarify his or her remarks. The Board President or the presiding officer will maintain control of the meeting. VII. Consent Agenda The motion to approve the Consent Agenda as presented was initiated by Trustee Russell and seconded by Trustee Franzen. Unanimously carried. A. Approval Of An Edgewater Park Use and Policy Contract for Williams Bay Fire Department for the 60th Annual Chicken Roast from July 16, 2026 through July 19, 2026 VIII. Presentation of Accounts and Petitions A. Payroll ending 04-03-2026 in the amount of $58,405.73 The motion to approve the Payroll ending 04-03-2026 in the amount of $58,405.73 was initiated by Trustee Wright and seconded by Trustee Umans. Unanimously carried. B. Accounts Payable Prepaids dated 04-10-2026 in the amount of $87,837.90 The motion to approve the Accounts Payable Prepaids dated 04-10-2026 in the amount of $87,837.90 was initiated by Trustee Wright and seconded by Trustee Umans. Unanimously carried. C. Accounts Payable Unpaids dated 04-17-2026 in the amount of $390,988.77 The motion to approve the Accounts Payable Unpaids dated 04-17-2026 in the amount of $390,988.77 was initiated by Trustee Wright and seconded by Trustee Umans. Unanimously carried. D. Monthly EFT Payments for February 2026 in the amount of $113,963.66 The motion to approve the Monthly EFT Payments for February 2026 in the amount of $113,963.66 was initiated by Trustee Wright and seconded by Trustee Umans. Unanimously carried. E. Library Accounts Payable dated 04-16-2026 in the amount of $2,309.85 (For Informational Purposes Only) The Library Accounts Payables dated 04-16-2026 in the amount of $2.309.85 were presented for informational purposes only. F. 2026 Q1 Legal Fees The 2026 Q1 Legal Fees were presented for informational purposes only. G. February 2026 Financial Statements The motion to approve the February 2026 Financial Statements was initiated by Trustee Wright and seconded by Trustee Umans. Unanimously carried. IX. Plan Commission A. Plan Commission Recommendation for Approval - An Ordinance Amending Chapter 390 Zoning Article 3 Land Use Regulations § 390-0310M Re: Tourist Rooming House, Including Fees, Enforcement and Penalties. Applicant: Village of Williams Bay This item if for informational purposes only. X. Resolutions and Ordinances A. Discussion and Possible Action On Ordinance 2026-04 Amending Chapter 390 Zoning Article 3 Land Use Regulations § 390-0310M Re: Tourist Rooming House, Including Fees, Enforcement and Penalties. First Reading and Possible Waiver of Second Reading and Adoption Page 4 of 133 The motion to approve the first reading of Ordinance 2026-04 Amending Chapter 390 Zoning Article 3 Land Use Regulations § 390-0310M Re: Tourist Rooming House, Including Fees, Enforcement and Penalties was initiated by Trustee Franzen and seconded by Trustee Wright. Unanimously carried. The motion to waive the second reading of Ordinance 2026-04 Amending Chapter 390 Zoning Article 3 Land Use Regulations § 390-0310M Re: Tourist Rooming House, Including Fees, Enforcement and Penalties was initiated by Trustee Franzen and seconded by Trustee Bartholomew. Trustees Wright, Umans, and Vlach No. Motion carries. The motion to adopt Ordinance 2026-04 Amending Chapter 390 Zoning Article 3 Land Use Regulations § 390-0310M Re: Tourist Rooming House, Including Fees, Enforcement and Penalties. First Reading and Possible Waiver of Second Reading and Adoption was initiated by Trustee Franzen and seconded by Trustee Bartholomew. Trustee Russell No. Motion carries. XI. President’s Remarks A. Walworth County Proclamation – Celebrating America’s 250th Anniversary This item was moved to after the first public comments. President Jaramillo was presented with a 250th Anniversary Flag by Joann Laufenberg of Walworth County after the reading of Walworth County's Proclamation. XII. Committee Reports A. Protective Services, Chair - Trustee Vlach 1. Original, Renewal, or Temporary Operators License Application(s) The motion to approve the Original, Renewal, or Temporary Operators License Application(s) was initiated by Trustee Vlach and seconded by Trustee Umans. Unanimously carried. 2. Discussion and Possible Action on Above Quota Liquor Licenses - Status Update The Protective Services Committee gave an update on the above-quota liquor licenses. 3. Request For Proposal (RFP) for Village Fire Protection Services - Status Update The Protective Services Committee gave a status update on the Request for Proposal (RFP) for Village Fire Protection Services. 4. Williams Bay Police Department Community Service Officer(s) - Informational The Protective Services Committee shared information on a possible Williams Bay Police Department Community Service Officer. B. Finance and Personnel, Chair - Trustee Wright 1. Discussion and Possible Action on Authorizing A Quote From Kruger Landscape & Maintenance, Inc. for the Lawn Maintenance of Three (3) Retention Ponds in Bailey Estates Subdivision. 100% of the costs to be reimbursed by special assessments to all Baily Estates properties on an equal basis. The motion to recommend Village Board approval of a Quote From Kruger Landscape & Maintenance, Inc. for the Lawn Maintenance of Three (3) Retention Ponds in Bailey Estates Subdivision. 100% of the costs to be reimbursed by special assessments to all Baily Estates properties on an equal basis. was initiated by Trustee Bartholomew and seconded by Trustee Umans. Unanimously carried. XIII. Public Comments John Perryman, 391 Hawethorne, Asked what the role of the new Community Service Officer would be and what their uniform would look like in comparison to the Police Departments uniform. A. Individual public comments will be limited to two (2) minutes maximum. If your comments align with other comments before you, please consider stating that you are in agreement with those comments. The public may speak on any item that is not included on this agenda as a "Public Hearing or Forum." Anyone who wishes to comment should identify himself or herself and provide his or her local address. Page 5 of 133 Board members may discuss any matter raised by the public. However, the Board will refrain from extensive dialogue and should not take action on matters raised by the public during a public comment period. Referrals to committees or staff members might be made. Members may ask the commenter to clarify his or her remarks. The Board President or the presiding officer will maintain control of the meeting. XIV. Other Items for Discussion, Consideration, or Action A. 57th Annual Professional Municipal Clerks Week Proclamation President Jaramillo read the 57th Annual Professional Municipal Clerks Week Proclamation. B. Discussion and Possible Action on Authorizing A Quote From Kruger Landscape & Maintenance, Inc. for the Lawn Maintenance of Three (3) Retention Ponds in Bailey Estates Subdivision. 100% of the costs to be reimbursed by the residents of Bailey Estates. The motion to approve the Quote From Kruger Landscape & Maintenance, Inc. for the Lawn Maintenance of Three (3) Retention Ponds in Bailey Estates Subdivision. 100% of the costs to be reimbursed by the residents of Bailey Estates was initiated by Trustee Wright and seconded by Trustee Franzen. Unanimously carried. C. Village Board Receipt of an Appeal to Village of Williams Bay Code of Ordinances Chapter 46 Finance and Taxation Section 46-15 Payment of Delinquent Financial Obligations Regarding a Boat Slip Lease The motion to approve the Appeal to Village of Williams Bay Code of Ordinances Chapter 46 Finance and Taxation Section 46-15 Payment of Delinquent Financial Obligations Regarding a Boat Slip Lease was initiated by Trustee Umans and seconded by Trustee Wright. Unanimously carried. D. Closed Session. Closed session pursuant to Wis. Stat. Sec. 19.85 (1) (e) Deliberating or negotiating the purchasing of public properties, the investing of public funds, or conducting other specified public business, whenever competitive or bargaining reasons require a closed session: Yerkes Future Foundation (YFF) Development Agreement. There will be no action taken or discussion following Open Session. The earliest that any action will be taken on this item will be the next regularly scheduled Village Board Meeting on Monday, May 4, 2026. The motion to move into Closed session pursuant to Wis. Stat. Sec. 19.85 (1) (e) Deliberating or negotiating the purchasing of public properties, the investing of public funds, or conducting other specified public business, whenever competitive or bargaining reasons require a closed session: Yerkes Future Foundation (YFF) Development Agreement. There will be no action taken or discussion following Open Session. The earliest that any action will be taken on this item will be the next regularly scheduled Village Board Meeting on Monday, May 4, 2026. was initiated by Trustee Umans and seconded by Trustee Bartholomew. Votes: Yes: President Jaramillo, Trustees Bartholomew, Umans, Wright, Vlach, Russell, Franzen No: None Abstain: None Result: Passes E. Return to Open Session. There will be no action taken or discussion following Open Session. The earliest that any action will be taken on this item will be the next regularly scheduled Village Board Meeting on Monday, May 4, 2026. The motion to return to open session was initiated by Trustee Wright and seconded by Trustee Russell at 07:27pm. Unanimously carried. XV. Adjournment The motion to adjourn was initiated by Trustee Wright and seconded by Trustee Umans at 07:27pm. Unanimously carried. /s/ Tina Kolls, Village Clerk Page 6 of 133 These are not official Minutes until approved by the Governing Body. Page 7 of 133 04/04/20206 - 04/17/2026 Pay Date: Department Gross Regular Wages Gross OT Wages Payroll Taxes & Deductions Net Wages Crossing Guard $761.40 $0.00 $62.10 $699.30 General Administration $12,651.92 $292.06 $5,746.49 $7,197.49 KNC $3,137.29 $0.00 $932.85 $2,204.44 Lakefront/Beach $2,167.75 $109.76 $476.74 $1,800.77 Library $7,318.56 $0.00 $2,259.33 $5,059.23 Parks $1,088.30 $0.00 $102.70 $985.60 Police $34,864.65 $2,356.26 $11,905.37 $25,315.54 Protective Services (F&R) $0.00 $0.00 $0.00 $0.00 Public Works/W&S $16,126.20 $63.02 $5,136.71 $11,052.51 Recreation Department $4,130.84 $0.00 $1,223.25 $2,907.59 Village Board $0.00 $0.00 $0.00 $0.00 Total Net Wages $57,222.47 4/24/2026 Page 8 of 133 Village of Williams Bay Payment Approval Report - Unpaids Page: 1 Report dates: 5/1/2026-5/1/2026 May 01, 2026 12:09PM GL Account and Title Description Amount GL Period 526 ABRAHAM'S ON-SITE SHREDDING 100-51410-160 GEN ADMIN SUPPLIES SHREDDING SERVICES 72.50 526 Total ABRAHAM'S ON-SITE SHREDDING: 72.50 AFLAC 100-21259 AFLAC PAYABLE VOLUNTARY INSURANCE POLI 481.68 526 Total AFLAC: 481.68 AMAZON CAPITAL SERVICES 100-52360-145 RESCUE TEMP HOUSING LIGHT SWITCVH COVER 6.99 526 100-52360-145 RESCUE TEMP HOUSING EXIT SIGN 79.90 526 100-52360-145 RESCUE TEMP HOUSING EMERGENCY SIGNS 9.90 526 100-52360-145 RESCUE TEMP HOUSING KEY PAD LOCK 90.00 526 220-52320-175 EMS FAP ASSIST EXPENDITURE IT EQUIPMENT FOR STATION H 73.79 526 100-52360-145 RESCUE TEMP HOUSING PRIVACY FILM 8.79 526 100-52360-145 RESCUE TEMP HOUSING KEY TAGS 15.76 526 220-52320-175 EMS FAP ASSIST EXPENDITURE EMS CAD COMPUTER MONITO 149.99 526 100-52360-145 RESCUE TEMP HOUSING STATION HOUSE SUPPLIES 1,339.43 526 100-52360-145 RESCUE TEMP HOUSING SMOKE DETECTOR 12.51 526 Total AMAZON CAPITAL SERVICES: 1,787.06 AMERICAN TRUCK CENTER 100-52320-150 FIRE DEPT REPAIRS/MAINT FIRE TRUCK PULL OUT 3,050.00 526 Total AMERICAN TRUCK CENTER: 3,050.00 AT&T MOBILITY 100-52320-200 FIRE DEPT TELEPHONE FIRE CHIEF DEPT PHONE 37.10 526 Total AT&T MOBILITY: 37.10 BATZNER PEST CONTROL 100-55411-150 LAKEFRONT REPAIRS/MAINT BEACH HOUSE/ BOAT LAUNCH 67.38 526 100-55411-150 LAKEFRONT REPAIRS/MAINT LAKEFRONT RESTROOMS 56.04 526 100-51730-150 VH BLDG REPAIRS/MAINT VILLAGE HALL 72.21 526 100-51720-150 LIONS FIELD HOUSE REPAIR/MAINT LIONS FIELDHOUSE PEST CON 65.97 526 400-58100-150 LIBRARY BLDG REPAIRS & MAINT LIBRARY PEST CONTROL 65.97 526 Total BATZNER PEST CONTROL: 327.57 BAXTER WOODMAN 100-51630-000 LEGAL/ENGINEER/PLANNING AR R THE PRESERVE 2,761.01 526 100-51630-000 LEGAL/ENGINEER/PLANNING AR YERKES TRAFFIC IMPACT STU 550.00 526 100-51630-000 LEGAL/ENGINEER/PLANNING AR R BAILEY ESTATES OBSERVATI 9,548.32 526 100-51630-000 LEGAL/ENGINEER/PLANNING AR R FORMER SCHOOL MEETING 1,375.00 526 100-51630-000 LEGAL/ENGINEER/PLANNING AR R WOMENS LEADERSHIP REVI 130.00 526 100-51630-000 LEGAL/ENGINEER/PLANNING AR R THE PRESERVE PALN REVIE 2,506.25 526 100-51630-000 LEGAL/ENGINEER/PLANNING AR R PARK PL ASSIST WITH CONS 5,962.33 526 100-51630-000 LEGAL/ENGINEER/PLANNING AR R BAILEY ESTATES DEVELOPE 2,595.20 526 100-51630-000 LEGAL/ENGINEER/PLANNING AR R FORMER SCHOOL MEETING 796.13 526 100-51630-000 LEGAL/ENGINEER/PLANNING AR R BAILEY ESTATES MEETING & 550.00 526 Total BAXTER WOODMAN: 26,774.24 Page 9 of 133 Village of Williams Bay Payment Approval Report - Unpaids Page: 2 Report dates: 5/1/2026-5/1/2026 May 01, 2026 12:09PM GL Account and Title Description Amount GL Period BRUSHFIRE SIGNS 500-51410-150 VILLAGE HALL-WALWORTH ST REMOD BALANCE DUE SIGNS & VINYL 6,560.43 526 Total BRUSHFIRE SIGNS: 6,560.43 CITY OF LAKE GENEVA 100-51412-000 ELECTION EXPENSE ELECTION PUBLICATIONS PUB 8.48 526 Total CITY OF LAKE GENEVA: 8.48 DEPARTMENT OF ADMINISTRATION 100-51414-000 SOFTWARE LICENSE & IT SUPPORT GBS EMAIL FILTERING 24.40 526 Total DEPARTMENT OF ADMINISTRATION: 24.40 DOMENZ, JOHN OR KATHY 100-44623 HORVATH DRY STORAGE REVENUE REFUND FOR OVERPAYMENT 50.00 526 Total DOMENZ, JOHN OR KATHY: 50.00 GATEWAY TECHNICAL COLLEGE 100-52120-190 POLICE TRAINING INSTRUCTOR DEVELOPEMENT 250.00 526 Total GATEWAY TECHNICAL COLLEGE: 250.00 GORDON FLESCH 100-55210-130 REC DEPT TECHNOLOGY/IT REC DEPT COPIER LEASE 48.46 526 100-51410-162 GEN ADMIN COPIER EXPENSE VH COPIER LEASE 181.47 526 100-55210-130 REC DEPT TECHNOLOGY/IT REC DEPT COPIER USAGE MA 77.34 526 100-51410-162 GEN ADMIN COPIER EXPENSE VH COPIER USAGE MARCH/SP 294.02 526 Total GORDON FLESCH: 601.29 GRAINGER INC. 100-51730-150 VH BLDG REPAIRS/MAINT ADMIN OFFICE FURNANCE FILT 184.20 526 100-54310-150 STREETS EQUIP REPAIRS/MAINT ROCKER SWITCH 18.51 526 Total GRAINGER INC.: 202.71 HAWKINS INC 200-57631-160 WATER TREATMENT CHEMICALS CHLORINE 1,223.50 526 200-57631-160 WATER TREATMENT CHEMICALS CHLORINE 1,815.25 526 Total HAWKINS INC: 3,038.75 HOBBS, LARRY & KATHIE 100-44623 HORVATH DRY STORAGE REVENUE REFUND HORVATH KEY DEPOS 50.00 526 Total HOBBS, LARRY & KATHIE: 50.00 J&M DISPLAYS INC 415-52320-165 FIREWORKS EXPENDITURE 2026 FIREWORKS DISPLAY 28,750.00 526 Total J&M DISPLAYS INC: 28,750.00 JANESVILLE JANITOR SERV & INDUST INC 400-58100-175 JANITORIAL SERVICES APRIL 2026 LIBRARY CLEANING 702.00 526 100-51720-175 JANITORIAL SERVICES APRIL 2026 FIELDHOUSE CLEA 453.17 526 Page 10 of 133 Village of Williams Bay Payment Approval Report - Unpaids Page: 3 Report dates: 5/1/2026-5/1/2026 May 01, 2026 12:09PM GL Account and Title Description Amount GL Period 100-51730-175 JANITORIAL SERVICES APRIL 2026 VILLAGE OFFICES 702.00 526 Total JANESVILLE JANITOR SERV & INDUST INC: 1,857.17 LANGE ENTERPRISES INC. 100-55410-150 PARKS REPAIRS/MAINT 6 2.25 POST SLEEVES 165.15 526 Total LANGE ENTERPRISES INC.: 165.15 LYNCH & ASSOCIATES 100-52360-145 RESCUE TEMP HOUSING REVIEW & STAMP PALT AT NEW 245.00 526 100-52360-145 RESCUE TEMP HOUSING SET LOT CORNERS 139.50 526 Total LYNCH & ASSOCIATES: 384.50 MARUNDE, KURT 100-44623 HORVATH DRY STORAGE REVENUE REUND KEY DEPOSIT FOR 2 K 100.00 526 Total MARUNDE, KURT: 100.00 MID-STATE EQUIPMENT 100-55410-150 PARKS REPAIRS/MAINT TRACTOR PARTS 80.03 526 Total MID-STATE EQUIPMENT: 80.03 ODLING CONSTRUCTION INC. 100-52360-145 RESCUE TEMP HOUSING EMS BUILDING WATER / SEWE 9,848.84 526 200-57651-150 WATER MAINS REPAIRS/MAINT WATER MAIN VALVE REPLACE 3,470.33 526 Total ODLING CONSTRUCTION INC.: 13,319.17 OFFICE PRO 100-55410-160 PARKS SUPPLIES REST ROOM SUPPLIES 129.62 526 100-55411-160 LAKEFRONT SUPPLIES REST ROOM SUPPLIES 123.16 526 Total OFFICE PRO: 252.78 ON THE MARK PAINTING 500-51410-150 VILLAGE HALL-WALWORTH ST REMOD PAINT NEW VILLAGE HALL VAU 230.00 526 Total ON THE MARK PAINTING: 230.00 PETERSEN, HENRICK & JEANNE 100-44623 HORVATH DRY STORAGE REVENUE REFUND HORVATH KEY DEPOS 50.00 526 Total PETERSEN, HENRICK & JEANNE: 50.00 PETERSON'S RIVERVIEW NURSERY 100-56130-000 TREE ENHANCEMENT ARBOR DAY CELEBRATION TR 243.09 526 Total PETERSON'S RIVERVIEW NURSERY: 243.09 REYNOLDS, JIM 100-49009 GENERAL MISC UNCLASS JURY DUTY MILEAGE 54.40 526 Total REYNOLDS, JIM: 54.40 Page 11 of 133 Village of Williams Bay Payment Approval Report - Unpaids Page: 4 Report dates: 5/1/2026-5/1/2026 May 01, 2026 12:09PM GL Account and Title Description Amount GL Period SAINTS OCCUPATIONAL HEALTH NETWORK 100-52120-160 POLICE SUPPLIES NEW HIRE MEDICAL 76.00 526 Total SAINTS OCCUPATIONAL HEALTH NETWORK: 76.00 SALSBURY 100-52360-145 RESCUE TEMP HOUSING LOCKERS 2,586.24 526 Total SALSBURY: 2,586.24 SHIRODA, MICHAELA 100-52120-190 POLICE TRAINING MILEAGE REIMBURSEMENT 174.71 526 Total SHIRODA, MICHAELA: 174.71 TOP PACK DEFENSE LLC 100-52120-125 POLICE UNIFORMS RAABE EVERYDAY CARRY BEL 62.99 526 130-52120-125 POLICE REFERENDUM UNIFORM CARLTON POUCH CLOTHING 301.39 526 Total TOP PACK DEFENSE LLC: 364.38 UBIQUITI STORE USA 220-52320-175 EMS FAP ASSIST EXPENDITURE INTENET CONNECTIVITY EQUI 894.40 526 Total UBIQUITI STORE USA: 894.40 USA BLUE BOOK 200-57952-000 WATER LAB EQUIPMENT PH ELECTRODE 465.50 526 Total USA BLUE BOOK: 465.50 VALENTINO RUDI 100-52120-190 POLICE TRAINING MEAL REIMBURSEMENT 39.30 526 Total VALENTINO RUDI: 39.30 VILLAGE OF GENOA CITY 200-57623-170 WATER TESTING 2 BAC T TESTS 80.00 526 Total VILLAGE OF GENOA CITY: 80.00 WALCOMET 300-58980-310 WALCOMET SEWER CONNECTION FEE USER CHARGES FIR CHARGES 325.99 526 Total WALCOMET: 325.99 WALWORTH COUNTY SHERIFF'S OFFICE 100-52120-190 POLICE TRAINING POLICE FIREARMS TRAINING 150.00 526 Total WALWORTH COUNTY SHERIFF'S OFFICE: 150.00 WI DEPT OF JUSTICE - TIME 100-52120-130 POLICE IT EXPENSE TIME ACCESS 333.00 526 Total WI DEPT OF JUSTICE - TIME: 333.00 WILLIAMS BAY AUTOMOTIVE 100-52120-150 POLICE REPAIRS/MAINT OIL CHANGE SQUAD 293 123.39 526 Page 12 of 133 Village of Williams Bay Payment Approval Report - Unpaids Page: 5 Report dates: 5/1/2026-5/1/2026 May 01, 2026 12:09PM GL Account and Title Description Amount GL Period Total WILLIAMS BAY AUTOMOTIVE: 123.39 WISCONSIN DANCE THEATRE 100-55210-270 REC DEPT ATHLETIC PROGRAM EXP REC CLASS 160.00 526 100-55210-270 REC DEPT ATHLETIC PROGRAM EXP TRY IT CLASS 100.00 526 Total WISCONSIN DANCE THEATRE: 260.00 WISCONSIN PROFESSIONAL POLICE 100-21262 UNION DUES PAYABLE MAY 2026 UNION DUES 329.00 526 Total WISCONSIN PROFESSIONAL POLICE: 329.00 WITTE SUPPLY COMPANY 100-54310-150 STREETS EQUIP REPAIRS/MAINT TOP SOIL/ GRASS SEED/ STRA 305.50 526 100-55410-150 PARKS REPAIRS/MAINT TOP SOIL 128.00 526 100-55410-150 PARKS REPAIRS/MAINT TOP SOIL 128.00 526 100-55410-150 PARKS REPAIRS/MAINT STRAW MATTING 34.50 526 Total WITTE SUPPLY COMPANY: 596.00 Total 526: 95,600.41 Grand Totals: 95,600.41 Village Board Approval Date: ____________________________________ Page 13 of 133 Page 14 of 133 Reporting and insights from 2025 audit: Village of Williams Bay December 31, 2025 Page 15 of 133 THIS COMMUNICATION IS INTENDED SOLELY FOR THE INFORMATION AND USE OF THOSE CHARGED WITH GOVERNANCE, AND, IF APPROPRIATE, MANAGEMENT, AND IS NOT INTENDED TO BE AND SHOULD NOT BE USED BY ANYONE OTHER THAN THESE SPECIFIED PARTIES. BAKER TILLY ADVISORY GROUP, LP AND BAKER TILLY US, LLP, TRADING AS BAKER TILLY, ARE MEMBERS OF THE GLOBAL NETWORK OF BAKER TILLY INTERNATIONAL LTD., THE MEMBERS OF WHICH ARE SEPARATE AND INDEPENDENT LEGAL ENTITIES. BAKER TILLY US, LLP IS A LICENSED CPA FIRM THAT PROVIDES ASSURANCE SERVICES TO ITS CLIENTS. BAKER TILLY ADVISORY GROUP, LP AND ITS SUBSIDIARY ENTITIES PROVIDE TAX AND CONSULTING SERVICES TO THEIR CLIENTS AND ARE NOT LICENSED CPA FIRMS. NONATTEST SERVICES ARE PROVIDED BY BAKER TILLY ADVISORY GROUP, LP. Executive summary April 29, 2026 To the Village Board Village of Williams Bay 250 Williams Street Williams Bay, WI 53191 We have completed our audit of the financial statements of the Village of Williams Bay (the Village) for the year ended December 31, 2025, and have issued our report thereon dated April 29, 2026. This letter presents communications required by our professional standards. Your audit should provide you with confidence in your financial statements. The audit was performed based on information obtained from meetings with management, data from your systems, knowledge of your Village's operating environment and our risk assessment procedures. We strive to provide you clear, concise communication throughout the audit process and of the final results of our audit. Additionally, we have included information on key risk areas the Village of Williams Bay should be aware of in your strategic planning. We are available to discuss these risks as they relate to your organization's financial stability and future planning. If you have questions at any point, please connect with us: • Paul Frantz, CPA, Principal: paul.frantz@bakertilly.com or +1 (414) 777 5506 Sincerely, Baker Tilly US, LLP Paul Frantz, CPA, Principal Page 16 of 133 © 2025 Baker Tilly US, LLP Page | 3 Responsibilities Our responsibilities As your independent auditor, our responsibilities include: • Planning and performing the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. Reasonable assurance is a high level of assurance. • Assessing the risks of material misstatement of the financial statements, whether due to fraud or error. Included in that assessment is a consideration of the Village's internal control over financial reporting. • Performing appropriate procedures based upon our risk assessment. • Evaluating the appropriateness of the accounting policies used and the reasonableness of significant accounting estimates made by management. • Forming and expressing an opinion based on our audit about whether the financial statements prepared by management, with the oversight of the Village board: • Are free from material misstatement • Present fairly, in all material respects and in accordance with accounting principles generally accepted in the United States of America • Our audit does not relieve management or the Village board of their responsibilities. We are also required to communicate significant matters related to our audit that are relevant to the responsibilities of the Village board, including: • Internal control matters • Qualitative aspects of the Village's accounting practice including policies, accounting estimates and financial statement disclosures • Significant unusual transactions • Significant difficulties encountered • Disagreements with management • Circumstances that affect the form and content of the auditors' report • Audit consultations outside the engagement team • Corrected and uncorrected misstatements • Other audit findings or issues Page 17 of 133 © 2025 Baker Tilly US, LLP Page | 4 Audit status Significant changes to the audit plan There were no significant changes made to either our planned audit strategy or to the significant risks and other areas of emphasis identified during the performance of our risk assessment procedures. Page 18 of 133 © 2025 Baker Tilly US, LLP Page | 5 Audit approach and results Planned scope and timing Audit focus Based on our understanding of the Village and environment in which you operate, we focused our audit on the following key areas: • Key transaction cycles • Areas with significant estimates • Implementation of new accounting standards Our areas of audit focus were informed by, among other things, our assessment of materiality. Materiality in the context of our audit was determined based on specific qualitative and quantitative factors combined with our expectations about the Village's current year results. Key areas of focus and significant findings Significant risks of material misstatement A significant risk is an identified and assessed risk of material misstatement that, in the auditors' professional judgment, requires special audit consideration. Within our audit, we focused on the following areas below. Significant risk areas Testing approach Conclusion Management override of controls Incorporate unpredictability into audit procedures, emphasize professional skepticism and utilize audit team with industry expertise Procedures identified provided sufficient evidence for our audit opinion Improper revenue recognition due to fraud Confirmation or validation of certain revenues supplemented with detailed predictive analytics based on non-financial data and substantive testing of related receivables Procedures identified provided sufficient evidence for our audit opinion Other areas of emphasis We also focused on other areas that did not meet the definition of a significant risk, but were determined to require specific awareness and a unique audit response. Other areas of emphasis Cash and investments Revenues and receivables General disbursements Payroll Pension liability Long-term debt Capital assets including infrastructure Net position and fund balance calculations Financial reporting and required disclosures Page 19 of 133 © 2025 Baker Tilly US, LLP Page | 6 Internal control matters We considered the Village's internal control over financial reporting as a basis for designing our audit procedures for the purpose of expressing an opinion on the financial statements. We are not expressing an opinion on the effectiveness of the Village's internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that were not identified. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. We identified the following deficiencies as material weaknesses: • Inadequate segregation of duties A properly designed system of internal control includes adequate staffing as well as policies and procedures to properly segregate duties. This includes systems that are designed to limit the access or control of any one individual to your government's assets or accounting records, and to achieve a higher likelihood that errors or irregularities in your accounting processes would be discovered by your staff in a timely manner. At this time, due to staffing and financial limitations, the proper internal controls are not in place to achieve adequate segregation of duties. As a result, errors, irregularities or fraud could occur as part of the financial reporting process that may not be discovered by someone in your organization. Therefore, we are reporting a material weakness related to the internal control environment. • Missing key controls There are certain controls that are not currently in place related to significant transaction cycles. As a result, there is a risk that erroneous or unauthorized transactions or misstatements could occur without the knowledge of management or the governing body. Our recommendations for strengthening controls are listed below. Controls over accounts payable/disbursements • For payments made by ACH or wire transfer, someone independent of the preparation/initiation of the wire should approve/release the wire. • The accounts payable GL account and list of accounts payable should be reconciled regularly. Controls over property taxes • There should be a formal process to prepare and approve journal entries to record taxes receivable and the tax settlements. • Bank reconciliations for the tax account should be performed by someone independent of the tax collection process. Controls over utility billing • The entry of new customers and changes in billing rates should be reviewed by someone other than the person who enters the information into the billing system. Page 20 of 133 © 2025 Baker Tilly US, LLP Page | 7 Controls over monthly and year-end accounting • Adjusting journal entries and supporting documentation should be reviewed and approved by an appropriate person who is not the original preparer. • Account reconciliations prepared throughout the year should be performed by someone independent of processing transactions in the account. • Year-end reconciliations (retainages, payroll accruals) should be reviewed and approved by someone other than the preparer. Since the controls listed above or other compensating controls are not currently in place, errors or irregularities could occur as part of the accounting processes that might not be discovered by management or the governing body. Therefore, the absence of these controls is considered to be a material weakness. We recommend that a designated employee review the segregation of duties, risks and these potential controls and determine whether additional controls should be implemented. This determination should take into consideration a cost / benefit analysis. • Financial statement close process Properly designed systems of internal control provide your organization with the ability to process and record accurate monthly and year-end transactions and annual financial reports. Our audit includes a review and evaluation of the internal controls relating to financial reporting. Common attributes of a properly designed system of internal control for financial reporting are as follows: • There is adequate staffing to prepare financial reports throughout the year and at year-end. • Material misstatements are identified and corrected during the normal course of duties. • Complete and accurate financial statements, including footnotes, are prepared. • Financial reports are independently reviewed for completeness and accuracy. Our evaluation of the internal controls over financial reporting has identified control deficiencies that are considered material weakness surrounding the preparation of financial statements and footnotes, adjusting journal entries identified by the auditors, and an independent review of financial reports. Management has not prepared financial statements that are in conformity with generally accepted accounting principles. In addition, material misstatements in the general ledger were identified during the financial audit. This level of internal control over financial reporting can be a difficult task for governments that operate with only enough staff to process monthly transactions and reports, and often rely on their auditors to prepare certain year-end audit entries and financial statements. Page 21 of 133 © 2025 Baker Tilly US, LLP Page | 8 Other comments and recommendations • Departmental Controls As part of our annual audit process, we focus our efforts on the primary accounting systems, internal controls and procedures used by the Village. This is in keeping with our goal to provide an audit opinion which states that the financial statements of the Village are correct in all material respects. In some cases, the primary system of accounting procedures and controls of the Village are supported by smaller systems which are decentralized and reside within a department or location. In many cases, those systems are as simple as handling cash collections and remitting those collections to the Treasurer. However, as noted earlier in this letter, there are some systems that are not remitting anything to the Treasurer's office. Generally, the more centralized a function is, the easier it is to design and implement accounting controls that provide some level of checks and balances. That is because you are able to divide certain tasks over the people available to achieve some segregation of duties. For those tasks that are decentralized, it is usually very difficult to provide for proper segregation of duties. Therefore, with one person being involved in most or all aspects of a transaction, you lose the ability to rely on the controls to achieve the safeguarding of assets and reliability of financial records. As auditors, we are required to communicate with you on a variety of topics. Since there is now more emphasis on internal controls and management's responsibilities, we believe it is appropriate to make sure that you are informed about the lack of segregation of duties that may occur at departments or locations that handle cash. Departments in your Village that fit this situation may include the following: Parks and recreation Library Police department DPW Fire department Municipal court As you might expect, similar situations are common in most governments. As auditors, we are required to focus on the financial statements at a highly summarized level and our audit procedures support our opinion on those financial statements. Departments or locations that handle relatively smaller amounts of money are not the primary focus of our audit. Yet, because of the lack of segregation of duties, the opportunity for loss is higher there than in centralized functions that have more controls. Because management is responsible for designing and implementing controls and procedures to detect and prevent fraud, we believe that is important for us to communicate this information to you. We have no knowledge of any fraud that has occurred or is suspected to have occurred within the departments mentioned above. However, your role as the governing body is to assess your risk areas and determine that the appropriate level of controls and procedures are in place. As always, the costs of controls and staffing must be weighed against the perceived benefits of safeguarding your assets. Without adding staff or splitting up the duties, your own day-to-day contact and knowledge of the operation are also important mitigating factors. Page 22 of 133 © 2025 Baker Tilly US, LLP Page | 9 Required communications Qualitative aspect of accounting practices • Accounting policies: Management is responsible for the selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we have advised management about the appropriateness of accounting policies and their application. The significant accounting policies used by Village are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing accounting policies was not changed during 2025. We noted no transactions entered into by the Village during the year for which accounting policies are controversial or for which there is a lack of authoritative guidance or consensus or diversity in practice. • Accounting estimates: Accounting estimates, including fair value estimates, are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements, the degree of subjectivity involved in their development and because of the possibility that future events affecting them may differ significantly from those expected. The following estimates are of most significance to the financial statements: Estimate Management's process to determine Baker Tilly's conclusions regarding reasonableness Accrued compensated absences Evaluation of hours earned and accumulated in accordance with employment policies, historical usage and average wage per hour rates Reasonable in relation to the financial statements as a whole Net pension liability and related deferrals Evaluation of information provided by the Wisconsin Retirement System Reasonable in relation to the financial statements as a whole Depreciation Evaluate estimated useful life of the asset and original acquisition value Reasonable in relation to the financial statements as a whole There have been no significant changes made by management to either the processes used to develop the particularly sensitive accounting estimates, or to the significant assumptions used to develop the estimates, noted above. • Financial statement disclosures: The disclosures in the financial statements are neutral, consistent and clear. Page 23 of 133 © 2025 Baker Tilly US, LLP Page | 10 Significant unusual transactions There have been no significant transactions that are outside the normal course of business for the Village or that otherwise appear to be unusual due to their timing, size or nature. Significant difficulties encountered during the audit We encountered no significant difficulties in dealing with management and completing our audit. Disagreements with management Professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting or auditing matter that could be significant to the basic financial statements or the auditors' report. We are pleased to report that no such disagreements arose during the course of our audit. Audit report There have been no departures from the auditors' standard report. Audit consultations outside the engagement team We encountered no difficult or contentious matters for which we consulted outside of the engagement team. Uncorrected misstatements and corrected misstatements Professional standards require us to accumulate misstatements identified during the audit, other than those that are clearly trivial, and to communicate accumulated misstatements to management. The schedule within the attachments summarizes the uncorrected misstatements, other than those that are clearly trivial, that we presented to management and the material corrected misstatements that, in our judgment, may not have been detected except through our auditing procedures. The internal control matters section of this report describes the effects on the financial reporting process indicated by the uncorrected misstatements and corrected misstatements, other than those that we consider to be of a lesser magnitude than significant deficiencies and material weaknesses. Management has determined that the effects of the uncorrected misstatements are immaterial, both individually and in the aggregate, to the financial statements as a whole. The uncorrected misstatements or the matters underlying them could potentially cause future period financial statements to be materially misstated, even though, in our judgment, such uncorrected misstatements are immaterial to the basic financial statements under audit. Other audit findings or issues We encountered no other audit findings or issues that require communication at this time. We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Village's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Management's consultations with other accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing or accounting matters. Page 24 of 133 © 2025 Baker Tilly US, LLP Page | 11 Written communications between management and Baker Tilly The attachments include copies of other material written communications, including a copy of the management representation letter. Compliance with laws and regulations We did not identify any non-compliance with laws and regulations during our audit except for the excess expenditures over appropriations disclosed in Note 2 of the financial statements. Fraud We did not identify any known or suspected fraud during our audit. Going concern Pursuant to professional standards, we are required to communicate to you, when applicable, certain matters relating to our evaluation of the Village's ability to continue as a going concern for a reasonable period of time but no less than 12 months from the date of the financial statements, including the effects on the financial statements and the adequacy of the related disclosures, and the effects on the auditors' report. No such matters or conditions have come to our attention during our engagement. Independence We are not aware of any relationships between Baker Tilly and the Village that, in our professional judgment, may reasonably be thought to bear on our independence. Related parties We did not have any significant findings or issues arise during the audit in connection with the Village's related parties. Other matters We applied certain limited procedures to the required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the supplementary information which accompanies the financial statements but is not RSI. With respect to the supplementary information, we made certain inquiries of management and evaluated the form, content and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. Page 25 of 133 © 2025 Baker Tilly US, LLP Page | 12 Nonattest services The following nonattest services were provided by Baker Tilly: • Financial statement preparation • Adjusting journal entries • Compiled regulatory reports • Utility rate consulting In addition, as part of the financial statement preparation we prepared GASB No. 34 conversion entries which are summarized in the "Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position" and the "Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities" in the financial statements. None of these nonattest services constitute an audit under generally accepted auditing standards, including Government Auditing Standards. Page 26 of 133 © 2025 Baker Tilly US, LLP Page | 13 Village Board resources Our business is to know every aspect of yours and to maintain a constant lookout for what's next. We invite you to learn about some of the trending challenges and opportunities for public sector organizations like yours and how Baker Tilly can help. To explore more trending topics and regulatory updates, visit our resource page at https://www.bakertilly.com/insights/audit-committee-resource-page. Funding evaluation and pursuit Public sector organizations may be eligible for grants, tax credits and other financial incentives through funding opportunities such as the Inflation Reduction Act, the Clean Communities Investment Accelerator, and the Infrastructure Investment and Jobs Act. Baker Tilly can help you navigate, understand and pursue various federal and state funding sources through grant research and tracking, advising and writing, and management and compliance services. Digital transformation Digitizing public services can be a game changer for governments. Streamlining inefficient processes, providing digital access and delivery of services to meet public expectations, implementing technology to protect constituent data, leveraging information to make data-driven decisions and migrating outdated on-premises systems to the cloud are crucial to an entity's success. Through these types of digital services, Baker Tilly can help you scale with future demand and be better positioned to rapidly respond to changing demands. Cybersecurity Public sector organizations face significant challenges from cyber threats and IT regulations. It can feel like you are on the defense keeping up with the latest risks, regulations and emerging trends. To mitigate risk, you must understand your organization's unique vulnerabilities, cybersecurity processes and controls. Baker Tilly can help enhance your cybersecurity posture and ensure compliance, with solutions in IT compliance and security and cybersecurity and data protection to safeguard your data and navigate complex risk environments. Page 27 of 133 © 2025 Baker Tilly US, LLP Page | 14 Management representation letter Page 28 of 133 
 
  
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Page 29 of 133 Page 30 of 133 Page 31 of 133 Page 32 of 133 Page 33 of 133 Page 34 of 133 Page 35 of 133 Page 36 of 133 Total Total Change in Current Noncurrent Total Assets/ Current Noncurrent Total Liabilities/ Net Position/ Total Expenses/ Net Position/ Assets Assets Deferred Outflows Liabilities Liabilities Deferred Inflows Fund Balances Revenues Expenditures Fund Balances General Fund - - - - - (16,701) 22,039 (11,363) 33,402 22,039 Water Fund - - - (2,798) - (2,798) 2,798 - 2,798 2,798 Remaining Funds - - - - - (3,225) 3,225 - 3,225 3,225 Village of Williams Bay SUMMARY OF UNCORRECTED FINANCIAL STATEMENT MISSTATEMENTS December 31, 2025 Financial Statements Effect - Debit (Credit) to Financial Statement Total P: drive updated 12/14 For use on audits after 10/1/15 TB.4 PAJE's 1 of 1 Page 37 of 133 © 2025 Baker Tilly US, LLP Page | 24 Client service team Paul Frantz, CPA Principal 790 N Water Street Suite 2000 Milwaukee, Wisconsin 53202 United States T +1 (414) 777 5506 paul.frantz@bakertilly.com Lawson Ramuta, CPA Manager 3410 Oakwood Mann Dr. Suite 200 Eau Claire, Wisconsin 54701 United States T +1 (612) 876 4908 lawson.ramuta@bakertilly.com Page 38 of 133 © 2025 Baker Tilly US, LLP Page | 25 Accounting changes relevant to the Village of Williams Bay Future accounting standards update GASB Statement Number Description Potentially impacts you Effective date 103 Financial Reporting Model Improvements 12/31/26 104 Disclosure of Certain Capital Assets 12/31/26 105 Subsequent Events 12/31/27 Further information on upcoming GASB pronouncements. Changes to the financial reporting model GASB Statement 103, Financial Reporting Model Improvements, builds on Statement 34 by providing key targeted improvements to the financial reporting model. Its requirements are designed to: • Enhance the effectiveness of governmental financial reports in providing information essential for decision making and assessing a government's accountability, and • Address certain application issues. The targeted improvements contained in Statement 103 establish or modify existing accounting and financial reporting requirements related to: • Management's discussion and analysis - While the overall requirements do not substantially change management's discussion and analysis, the modifications are meant to improve the analysis included in this section and provide details about the items that should be discussed as currently known facts, decisions, or conditions expected to have a significant financial effect in the subsequent period. • Unusual or infrequent items (previously known as extraordinary and special items) - The new Statement simplifies GASB literature by eliminating the separate presentation of extraordinary and special items. Under the requirement of Statement 103, applicable items will either be identified as unusual or infrequent, or both. • Presentation of the proprietary fund statement of revenues, expenses, and changes in fund net position - The changes are designed to improve consistency around the classification of items in these statements by better defining what should be included in operating revenues and expenses and nonoperating revenues and expenses including, for example, the addition of subsidies received or provided as a new category of nonoperating revenues and expenses. Major component unit information, and Budgetary comparison information - Statement 103 is designed to improve the consistency of the reporting of major component unit information and budgetary comparison information by specifying required placement of that information. Page 39 of 133 © 2025 Baker Tilly US, LLP Page | 26 Revisions to disclosures for certain capital assets Governments are required to provide information on capital assets in the footnotes to the financial statements as outlined in GASB Statement No. 34. Recent standards have impacted the accounting and reporting for capital assets and as a result GASB issued Statement No. 104, Disclosure of Certain Capital Assets to provide enhanced disclosures for certain capital assets, including: (a) Lease assets reported under Statement No. 87, intangible right-to-use assets reported under Statement No. 94 and subscription assets reported under Statement No. 96 should all be disclosed separately, and by major class of underlying asset. In addition, if there are any other intangible assets reported they should also be disclosed separately. (b) Capital assets that are held for sale should have the ending balance with separate disclosure for historical cost and related accumulated depreciation as well as any outstanding debt for which the asset is pledged as collateral disclosed by major class of asset. Assets held for sale are defined as those for which the government has decided to pursue the sale, and it is probable that the sale will be finalized within one year of the financial statement date. While these changes are focused on footnote disclosures it is important to plan ahead to ensure the required information is available for implementation. Updated guidance for the financial reporting of subsequent events GASB Statement No. 105, Subsequent Events, which supersedes GASB Statement No. 56, is intended to enhance consistency in the application of requirements for subsequent events. The Statement defines subsequent events as transactions or other events that occur after year end but before the date the financial statements are available to be issued. The date the financial statements are available to be issued is the date at which (a) the financial statements are complete in a form and format that complies with generally accepted accounting principles (GAAP) and (b) approvals necessary for issuance have been obtained, or typically the opinion date. The definition of subsequent events in this Statement modifies the subsequent events time frame throughout the GASB literature. The Statement also clarifies: • The different types of subsequent events (recognized and nonrecognized events) • When note disclosures are required • The information that should be included in those note disclosures Page 40 of 133 © 2025 Baker Tilly US, LLP Page | 27 Uncorrected misstatements See the Summary of Uncorrected Financial Statement Misstatements Schedule included within the Management Representation Letter for a summary of the financial statement effects of the uncorrected misstatements. Material corrected misstatements Description Amount To correct and record loan proceeds $ 1,476,050 To correct bond principal payments 668,198 To reverse transfer related to moving loan proceeds between funds 1,341,024 Reversal of prior year audit entries to correct fund balance 153,642 To clear out prior year tax roll 14,461,970 To record current tax roll 11,760,347 To record advance tax collections 2,999,951 To reverse prior year retainage 504,564 To move qualifying expenditures to ARPA 227,730 To record the current year tax equivalent 78,028 To record construction accounts payable and retainages 706,312 To record current year capital asset additions and disposals 5,596,045 To record current year depreciation expense 425,842 The remaining misstatements that were identified and corrected by management were not material individually or in the aggregate to the financial statements taken as a whole. Page 41 of 133 © 2025 Baker Tilly US, LLP Page | 28 Two-way audit communications, As part of our audit of your financial statements, we are providing communications to you throughout the audit process. Auditing requirements provide for two-way communication and are important in assisting the auditor and you with more information relevant to the audit. As this past audit is concluded, we use what we have learned to begin the planning process for next year's audit. It is important that you understand the following points about the scope and timing of our next audit: a. We address the significant risks of material misstatement, whether due to fraud or error, through our detailed audit procedures. b. We will obtain an understanding of the five components of internal control sufficient to assess the risk of material misstatement of the financial statements whether due to error or fraud, and to design the nature, timing and extent of further audit procedures. We will obtain a sufficient understanding by performing risk assessment procedures to evaluate the design of controls relevant to an audit of financial statements and to determine whether they have been implemented. We will use such knowledge to: • Identify types of potential misstatements. • Consider factors that affect the risks of material misstatement. • Design tests of controls, when applicable, and substantive procedures. c. We will not express an opinion on the effectiveness of internal control over financial reporting or compliance with laws, regulations and provisions of contracts or grant programs. d. The concept of materiality recognizes that some matters, either individually or in the aggregate, are important for fair presentation of financial statements in conformity with generally accepted accounting principles while other matters are not important. In performing the audit, we are concerned with matters that, either individually or in the aggregate, could be material to the financial statements. Our responsibility is to plan and perform the audit to obtain reasonable assurance that material misstatements, whether caused by errors or fraud, are detected. Our audit will be performed in accordance with auditing standards generally accepted in the United States of America. We are very interested in your views regarding certain matters. Those matters are listed here: a. We typically will communicate with your top level of management unless you tell us otherwise. b. We understand that the governing board has the responsibility to oversee the strategic direction of your organization, as well as the overall accountability of the entity. Management has the responsibility for achieving the objectives of the entity. c. We need to know your views about your organization's objectives and strategies, and the related business risks that may result in material misstatements. d. We anticipate that the Village will receive an unmodified opinion on its financial statements. e. Which matters do you consider warrant particular attention during the audit, and are there any areas where you request additional procedures to be undertaken? f. Have you had any significant communications with regulators or grantor agencies? g. Are there other matters that you believe are relevant to the audit of the financial statements? Page 42 of 133 © 2025 Baker Tilly US, LLP Page | 29 Also, is there anything that we need to know about the attitudes, awareness and actions of the governing body concerning: a. The entity's internal control and its importance in the entity, including how the Village board oversee the effectiveness of internal control? b. The detection or the possibility of fraud? We also need to know if you have taken actions in response to developments in financial reporting, laws, accounting standards, governance practices, or other related matters, or in response to previous communications with us. With regard to the timing of our audit, here is some general information. If necessary, we may do preliminary financial audit work during the months of October-December, and sometimes early in January. Our final financial fieldwork is scheduled during the spring to best coincide with your readiness and report deadlines. After fieldwork, we wrap up our financial audit procedures at our office and may issue drafts of our report for your review. Final copies of our report and other communications are issued after approval by your staff. This is typically 6-12 weeks after final fieldwork, but may vary depending on a number of factors. Keep in mind that while this communication may assist us with planning the scope and timing of the audit, it does not change the auditor's sole responsibility to determine the overall audit strategy and the audit plan, including the nature, timing and extent of procedures necessary to obtain sufficient appropriate audit evidence. We realize that you may have questions on what this all means, or wish to provide other feedback. We welcome the opportunity to hear from you. Page 43 of 133 Village of Williams Bay Financial Statements and Supplementary Information December 31, 2025   Page 44 of 133 Village of Williams Bay Table of Contents December 31, 2025 Page Independent Auditors' Report 1 Basic Financial Statements Government Wide Financial Statements Statement of Net Position 4 Statement of Activities 5 Fund Financial Statements Balance Sheet - Government Funds 6 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 7 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 8 Statement of Net Position - Proprietary Funds 9 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 10 Statement of Cash Flows - Proprietary Funds 11 Statement of Fiduciary Net Position - Fiduciary Fund 12 Statement of Changes in Fiduciary Net Position - Fiduciary Fund 13 Index to Notes to Financial Statements 14 Notes to Financial Statements 15 Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 4 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - EMS Fund 4 Schedule of Proportionate Share of the Net Pension Liability (Asset) and Employer Contributions - Wisconsin Retirement System 4 Notes to Required Supplementary Information 4  Supplementary Information Combining Balance Sheet - Nonmajor Governmental Funds 4 Combining Statement of Revenues, Expenditures, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds 4 Page 45 of 133 /0/1/2/3/4/i255/6/7/8/8/9/i255/10/11/12/7/13/14/4/9/i255/15/4/14/16/17/18/i255/19/20/i255/1/21/11/i255/0/1/2/3/4/i255/6/7/8/8/9/i255/22/23/18/i255/19/19/20/18/i255/24/4/1/11/7/21/25/i255/1/13/i255/0/1/2/3/4/i255/6/7/8/8/9/18/i255/1/4/3/i255/26/3/26/27/3/4/13/i255/14/28/i255/24/29/3/i255/25/8/14/27/1/8/i255/21/3/24/30/14/4/2/i255/14/28/i255/0/1/2/3/4/i255/6/7/8/8/9/i255 /31/32/33/34/35/32/36/33/37/38/32/36/39/i255/41/33/42/43/44/i255/33/45/34/i255/46/34/46/47/34/35/48/i255/38/49/i255/50/45/37/51/45/i255/36/35/34/i255/48/34/52/36/35/36/33/34/i255/36/32/42/i255/37/32/42/34/52/34/32/42/34/32/33/i255/39/34/53/36/39/i255/34/32/33/37/33/37/34/48/43/i255/54/36/55/34/35/i255/56/37/39/39/57/i255/58/59/44/i255/41/41/60/i255/37/48/i255/36/i255/39/37/51/34/32/48/34/42/i255/61/60/62/i255/63/35/46/i255/33/45/36/33/i255 /17/4/14/12/7/11/3/13/i255/1/13/13/16/4/1/21/64/3/i255/13/3/4/12/7/64/3/13/i255/24/14/i255/7/24/13/i255/64/8/7/3/21/24/13/65/i255/0/1/2/3/4/i255/6/7/8/8/9/i255/10/11/12/7/13/14/4/9/i255/15/4/14/16/17/18/i255/19/20/i255/1/21/11/i255/7/24/13/i255/13/16/27/13/7/11/7/1/4/9/i255/3/21/24/7/24/7/3/13/i255/17/4/14/12/7/11/3/i255/24/1/66/i255/1/21/11/i255/64/14/21/13/16/8/24/7/21/25/i255/13/3/4/12/7/64/3/13/i255 /33/38/i255/33/45/34/37/35/i255/51/39/37/34/32/33/48/i255/36/32/42/i255/36/35/34/i255/32/38/33/i255/39/37/51/34/32/48/34/42/i255/61/60/62/i255/63/35/46/48/43 Independent Auditors' Report To the Village Board of Village of Williams Bay Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the Village of Williams Bay (the Village), as of and for the year ended December 31, 2025, and the related notes to the financial statements, which collectively comprise the Village's basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the Village as of December 31, 2025 and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Villa ge and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accountin g principles generally accepted in the United States of America; and for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Villa ge's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 1 Page 46 of 133 Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Village's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Village's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the required supplementary information, as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 2 Page 47 of 133 Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accountin g Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. Our opinions on the basic financial statements are not affected by this missing information. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectivel y comprise the Village's basic financial statements. The supplementary information as listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated in all material respects, in relation to the basic financial statements as a whole. Milwaukee, Wisconsin April 29, 2026 3 Page 48 of 133 BASIC FINANCIAL STATEMENTS Page 49 of 133 Business- Governmental Type Activities Activities Total Assets and Deferred Outflows of Resources Assets Cash and investments 4,970,422$ 5,251,699 $ 10,222,121 $ Taxes receivable 4,364,522 - 4,364,522 Accounts receivable 183,120 647,641 830,761 Leases receivable - 1,077,462 1,077,462 Prepaid items 25,774 3,715 29,489 Inventory - 9,713 9,713 Restricted assets, cash and investments 89,983 3,899,688 3,989,671 Capital assets: Land 1,779,105 22,352 1,801,457 Construction in progress 430,008 4,105,585 4,535,593 Other capital assets, net of depreciation 8,268,255 9,051,550 17,319,805 Total assets 20,111,189 24,069,405 44,180,594 Deferred Outflows of Resources Pension related amounts 914,602 154,114 1,068,716 Liabilities, Deferred Inflows of Resources and Net Position Liabilities Accounts payable and accrued expenses 262,442 906,874 1,169,316 Accrued interest 61,330 109,790 171,120 Deposits 2,700 - 2,700 Noncurrent liabilities: Due within one year 654,698 462,265 1,116,963 Due in more than one year 6,518,859 11,847,525 18,366,384 Net pension liability 156,193 23,725 179,918 Total liabilities 7,656,222 13,350,179 21,006,401 Deferred Inflows of Resources Pension related amounts 454,510 74,737 529,247 Lease related amounts - 1,077,462 1,077,462 Unearned revenues 4,329,301 - 4,329,301 Total deferred inflows of resources 4,783,811 1,152,199 5,936,010 Net Position Net investment in capital assets 3,621,451 3,762,216 7,383,667 Restricted for: Library 268,772 - 268,772 EMS 524,114 - 524,114 2% fire dues 39,507 - 39,507 Act 102 21,391 - 21,391 Debt service 556,551 - 556,551 Impact fees - 210,080 210,080 Equipment replacement - 146,893 146,893 Unrestricted 3,553,972 5,601,952 9,155,924 Total net position 8,585,758$ 9,721,141 $ 18,306,899 $ Village of Williams Bay Statement of Net Position December 31, 2025 See notes to financial statements 4 Page 50 of 133 Operating Capital Charges for Grants and Grants and Governmental Business-Type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Primary Government General government 1,154,179$ 179,651 $ - $ - $ (974,528)$ - $ (974,528)$ Public safety 2,735,185 331,253 114,012 - (2,289,920) - (2,289,920) Public works 1,082,879 207,673 8,162 - (867,044) - (867,044) Culture and recreation 1,303,639 747,041 46,440 - (510,158) - (510,158) Conservation and development 2,516 - - - (2,516) - (2,516) Interest and fiscal charges 217,063 - - - (217,063) - (217,063) Total governmental activities 6,495,461 1,465,618 168,614 - (4,861,229) - (4,861,229) Business-Type Activities Water utility 1,346,332 1,083,470 - 69,406 - (193,456) (193,456) Sewer utility 1,457,495 1,354,007 - 95,000 - (8,488) (8,488) Total business-type activities 2,803,827 2,437,477 - 164,406 - (201,944) (201,944) Total 9,299,288$ 3,903,095 $ 168,614 $ 164,406 $ (4,861,229) (201,944) (5,063,173) General Revenues Taxes: Property taxes, levied for general purposes 1,793,544 - 1,793,544 Property taxes, levied for debt service 899,956 - 899,956 Property taxes, levied for library 250,314 - 250,314 Property taxes, levied for recycling 76,000 - 76,000 Property taxes, levied for EMS 928,077 - 928,077 Other taxes 73,740 - 73,740 Intergovernmental revenues not restricted to specific programs 864,457 797,398 1,661,855 Investment income 241,121 342,258 583,379 Miscellaneous 171,611 - 171,611 Total general revenues 5,298,820 1,139,656 6,438,476 Transfers 78,028 (78,028) - Change in net position 515,619 859,684 1,375,303 Net Position, Beginning 8,070,139 8,861,457 16,931,596 Net Position, Ending 8,585,758$ 9,721,141 $ 18,306,899 $ Program Revenues Changes in Net Position Net (Expenses) Revenues and Village of Williams Bay Statement of Activities Year Ended December 31, 2025 See notes to financial statements 5 Page 51 of 133 Special Revenue Fund Capital Nonmajor Total General EMS Debt Service Projects Governmental Governmental Fund Fund Fund Fund Funds Funds Assets Cash and investments 2,857,419$ 555,217 $ 617,881 $ 464,737 $ 475,168 $ 4,970,422 $ Restricted cash and investments - - - 89,983 - 89,983 Taxes receivable 1,842,653 928,077 853,312 - 740,480 4,364,522 Accounts receivable 105,951 44,634 - - 32,535 183,120 Due from other funds 38,482 - - - - 38,482 Prepaid items 22,342 - - - 3,432 25,774 Total assets 4,866,847$ 1,527,928 $ 1,471,193 $ 554,720 $ 1,251,615 $ 9,672,303 $ Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities Accounts payable 129,170$ 75,737 $ - $ - $ 448 $ 205,355$ Accrued liabilities 57,087 - - - - 57,087 Deposits 2,700 - - - - 2,700 Due to other funds - - - - 38,482 38,482 Total liabilities 188,957 75,737 - - 38,930 303,624 Deferred Inflows of Resources Unavailable revenues - 44,634 - - - 44,634 Unearned revenues 1,807,432 928,077 853,312 - 740,480 4,329,301 Total deferred inflows of resources 1,807,432 972,711 853,312 - 740,480 4,373,935 Fund Balances Nonspendable 22,342 - - - 3,432 25,774 Restricted - 479,480 617,881 89,983 329,670 1,517,014 Committed 838,208 - - 464,737 146,610 1,449,555 Assigned 69,684 - - - - 69,684 Unassigned (deficit) 1,940,224 - - - (7,507) 1,932,717 Total fund balances 2,870,458 479,480 617,881 554,720 472,205 4,994,744 Total liabilities, deferred inflows of resources and fund balances 4,866,847$ 1,527,928 $ 1,471,193 $ 554,720 $ 1,251,615 $ Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental funds are not financial resources and therefore are not reported in the funds. 10,477,368 Some receivables that are not currently available are reported as unavailable revenues in the fund financial statements but are recognized as revenue when earned in the government-wide statements. 44,634 The net pension liability does not relate to current financial resources and is not reported in the governmental funds. (156,193) Deferred outflows of resources related to pensions do not related to current financial resources and are not reported in the governmental funds. 914,602 Deferred inflows of resources related to pensions do not related to current financial resources and are not reported in the governmental funds. (454,510) Some liabilities, including long-term debt, are not due and payable in the current period and, therefore, are not reported in the funds. General obligation debt (6,661,871) Bond premium (284,029) Accrued interest on general obligation debt (61,330) Compensated absences (227,657) Net position of governmental activities 8,585,758$ December 31, 2025 Village of Williams Bay Balance Sheet - Governmental Funds See notes to the financial statements 6 Page 52 of 133 Special Revenue Fund Capital Nonmajor Total General EMS Debt Service Projects Governmental Governmental Fund Fund Fund Fund Funds Funds Revenues Taxes 1,867,284$ 928,077 $ 899,956 $ - $ 326,314$ 4,021,631 $ Special assessments 4,360 - - - - 4,360 Intergovernmental 552,592 - - - 421,703 974,295 Regulation and compliance 300,238 - - - - 300,238 Public charges for services 976,510 - - - 4,300 980,810 Investment income 220,076 - - 1 21,042 241,119 Miscellaneous 163,270 - - - 207,263 370,533 Total revenues 4,084,330 928,077 899,956 1 980,622 6,892,986 Expenditures Current: General government 1,053,468 - - - - 1,053,468 Public safety 1,787,444 834,023 - - 66,267 2,687,734 Public works 508,445 - - - 135,250 643,695 Culture and recreation 671,471 - - - 534,987 1,206,458 Conservation and development 2,516 - - - - 2,516 Capital outlay - - - 1,270,157 227,730 1,497,887 Debt service: Principal - - 619,217 - - 619,217 Interest and fiscal charges 464 - 240,716 - - 241,180 Total expenditures 4,023,808 834,023 859,933 1,270,157 964,234 7,952,155 Excess (deficiency) of revenues over expenditures 60,522 94,054 40,023 (1,270,156) 16,388 (1,059,169) Other Financing Sources Proceeds from sale of capital assets 37,670 - - - - 37,670 Transfers in 78,028 - - - - 78,028 Total other financing sources 115,698 - - - - 115,698 Net change in fund balances 176,220 94,054 40,023 (1,270,156) 16,388 (943,471) Fund Balance, Beginning 2,694,238 385,426 577,858 1,824,876 455,817 5,938,215 Fund Balance, Ending 2,870,458$ 479,480 $ 617,881 $ 554,720 $ 472,205 $ 4,994,744 $ Village of Williams Bay Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Year Ended December 31, 2025 See notes to financial statements 7 Page 53 of 133 Net Change in Fund Balances, Total Governmental Funds (943,471)$ Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of net position the cost of these assets is capitalized and they are depreciated over their estimated useful lives and reported as depreciation expense in the Statement of Activities. Capital outlay is reported as an expenditure in the fund financial statements but is capitalized in the government-wide financial statements 1,497,887 Some items reported as capital outlay were not capitalized (31,183) Depreciation is recorded in the government-wide statements (575,508) Receivables not currently available are reported as revenue when collected or currently available in the fund financial statements but are recognized as revenue when earned in the government-wide financial statements. 2,393 Debt issued provides current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position. Principal repaid 619,217 Governmental funds report premiums and discounts associated with the issuance of long-term debt as other financing sources and uses but these items are amortized over the life of the debt issue on the Statement of Activities. Amortization of premiums 20,746 Some expenses in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. Compensated absences (22,475) Net pension liability (18,676) Deferred outflows of resources related to pensions (315,926) Deferred inflows of resources related to pensions 279,242 Accrued interest 3,373 Change in Net Position of Governmental Activities 515,619$ Village of Williams Bay Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended December 31, 2025 See notes to financial statements 8 Page 54 of 133 Water Sewer Utility Utility Total Assets and Deferred Outflows of Resources Current Assets Cash and investments 2,244,017$ 3,007,682 $ 5,251,699 $ Accounts receivable 323,096 324,545 647,641 Leases receivable 60,409 - 60,409 Inventory 9,713 - 9,713 Prepaid items 2,457 1,258 3,715 Restricted assets, cash and investments 2,952,708 590,007 3,542,715 Total current assets 5,592,400 3,923,492 9,515,892 Noncurrent Assets Restricted assets, cash and investments 210,080 146,893 356,973 Leases receivable 1,017,053 - 1,017,053 Capital assets: Land 22,352 - 22,352 Construction in progress 4,058,329 47,256 4,105,585 Other capital assets 11,378,193 9,777,365 21,155,558 Less accumulated depreciation/amortization (6,754,929) (5,349,079) (12,104,008) Total noncurrent assets 9,931,078 4,622,435 14,553,513 Total assets 15,523,478 8,545,927 24,069,405 Deferred Outflows of Resources Pension related items 115,362 38,752 154,114 Liabilities, Deferred Inflows of Resources and Net Position Current Liabilities Accounts payable 735,192 171,682 906,874 Accrued interest payable 69,711 40,079 109,790 Current portion of compensated absences 11,394 9,070 20,464 Current portion of general obligation and revenue related debt 271,813 169,988 441,801 Total current liabilities 1,088,110 390,819 1,478,929 Noncurrent Liabilities Long-term debt: Compensated absences 24,486 9,659 34,145 General obligation and revenue related debt 7,118,014 4,224,699 11,342,713 Unamortized debt premium 313,778 156,889 470,667 Net pension liability 16,373 7,352 23,725 Total noncurrent liabilities 7,472,651 4,398,599 11,871,250 Total liabilities 8,560,761 4,789,418 13,350,179 Deferred Inflows of Resources Pension related items 56,682 18,055 74,737 Lease related items 1,077,462 - 1,077,462 Total deferred inflows of resources 1,134,144 18,055 1,152,199 Net Position Net investment in capital assets 3,267,277 494,939 3,762,216 Restricted: Impact fees 210,080 - 210,080 Equipment replacement - 146,893 146,893 Unrestricted 2,466,578 3,135,374 5,601,952 Total net position 5,943,935$ 3,777,206 $ 9,721,141 Activities - Enterprise Funds Village of Williams Bay Statement of Net Position - Proprietary Funds December 31, 2025 Business-Type See notes to financial statements 9 Page 55 of 133 Water Sewer Utility Utility Total Operating Revenues Charges for services and sales 1,072,996$ 1,354,007 $ 2,427,003 $ Other 10,474 - 10,474 Total operating revenues 1,083,470 1,354,007 2,437,477 Operating Expenses Operation and maintenance 867,130 1,146,060 2,013,190 Depreciation 247,929 178,008 425,937 Total operating expenses 1,115,059 1,324,068 2,439,127 Operating income (loss) (31,589) 29,939 (1,650) Nonoperating Revenues (Expenses) Intergovernmental revenue 797,398 - 797,398 Investment income 241,186 101,072 342,258 Interest expense (231,273) (133,427) (364,700) Total nonoperating revenues (expenses) 807,311 (32,355) 774,956 Income (loss) before transfers and capital contributions 775,722 (2,416) 773,306 Transfers Out (75,248) (2,780) (78,028) Capital Contributions 69,406 95,000 164,406 Change in net position 769,880 89,804 859,684 Net Position, Beginning 5,174,055 3,687,402 8,861,457 Net Position, Ending 5,943,935$ 3,777,206 $ 9,721,141 $ Enterprise Funds Business-Type Village of Williams Bay Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds Year Ended December 31, 2025 Activities - See notes to financial statements 10 Page 56 of 133 Water Sewer Utility Utility Total Cash Flows From Operating Activities Received from customers 997,086$ 1,301,054 $ 2,298,140 $ Paid to vendors for goods and services (699,596) (966,991) (1,666,587) Paid to employees for services (224,833) (99,453) (324,286) Net cash flows from operating activities 72,657 234,610 307,267 Cash Flows From Capital and Related Financing Activities Acquisition and construction of capital assets (3,342,468) (1,804,990) (5,147,458) Contribution received for construction 69,406 95,000 164,406 Capital grant received 797,398 - 797,398 Proceeds from debt issued 2,311,855 1,891,085 4,202,940 Debt retired (550,057) (118,141) (668,198) Interest paid (236,960) (130,696) (367,656) Net cash flows from capital and related financing activities (950,826) (67,742) (1,018,568) Cash Flows From Noncapital Financing Transfers (75,248) (2,780) (78,028) Net cash flows from noncapital financing activities (75,248) (2,780) (78,028) Cash Flows From Investing Activities Investment income 241,186 101,072 342,258 . Net cash flows from investing activities 241,186 101,072 342,258 Net change in cash and cash equivalents (712,231) 265,160 (447,071) Cash and Cash Equivalents, Beginning 6,119,036 3,479,422 9,598,458 Cash and Cash Equivalents, Ending 5,406,805$ 3,744,582 $ 9,151,387 $ Reconciliation of Operating Income (Loss) to Net Cash From Operating Activities: Operating income (loss) (31,589)$ 29,939 $ (1,650) $ Adjustments to reconcile operating income (loss) to net cash from operating activities: Depreciation expense 247,929 178,008 425,937 Depreciation charged to other funds 17,754 (17,754) - Changes in assets, deferred outflows, liabilities and deferred inflows: Accounts receivable (107,110) (35,199) (142,309) Receivable from municipality 2,972 - 2,972 Materials and supplies (812) - (812) Prepaid expenses 684 795 1,479 Pension related liability and deferrals 1 (1) - Accounts payable (53,052) 80,923 27,871 Accrued liabilities (8,162) (3,636) (11,798) Compensated absences 4,042 1,535 5,577 Net cash flows from operating activities 72,657$ 234,610 $ 307,267 $ Reconciliation of Cash and Cash Equivalents to the Statement of Net Position, Proprietary Funds Cash and investments, statement of net position 2,244,017$ 3,007,682 $ 5,251,699 $ Restricted cash and investments, statement of net position 3,162,788 736,900 3,899,688 Cash and Cash Equivalents, Ending 5,406,805$ 3,744,582 $ 9,151,387 $ Noncash Capital and Related Financial Activities Amortization of premium 18,458$ 9,228 $ 27,686 $ Capital related items in accounts payable 685,771 $ 19,034 $ 704,805 $ Business-Type Activities - Enterprise Funds Village of Williams Bay Statement of Cash Flows - Proprietary Funds Year Ended December 31, 2025 See notes to financial statements 11 Page 57 of 133 Custodial Fund Tax Collection Fund Assets Cash and cash equivalents 3,113,601$ Taxes receivable 8,646,746 Total assets 11,760,347 Liabilities Due to other taxing units 11,760,347 Net Position Total net position -$ Statement of Fiduciary Net Position - Fiduciary Fund Village of Williams Bay December 31, 2025 See notes to financial statements 12 Page 58 of 133 Custodial Fund Tax Collection Fund Additions Tax collections 7,808,767$ Deductions Payments to overlying districts 7,808,767 Change in fiduciary net position - Net Position, Beginning - Net Position, Ending -$ Statement of Changes in Fiduciary Net Position - Fiduciary Fund Year Ended December 31, 2025 Village of Williams Bay See notes to financial statements 13 Page 59 of 133 Village of Williams Bay Index to Notes to Financial Statements December 31, 2025 Page 1. Summary of Significant Accounting Policies 15 Reporting Entity 15 Government-Wide and Fund Financial Statements 15 Measurement Focus, Basis of Accounting and Financial Statement Presentation 17 Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity 18 Deposits and Investments 18 Receivables 19 Inventories and Prepaid Items 19 Restricted Assets 19 Capital Assets 20 Deferred Outflows of Resources 20 Compensated Absences 20 Lon g-Term Obligations 20 Leases 21 Deferred Inflows of Resources 21 Equity Classifications 21 Pension 22 Basis for Existin g Rates 23 2. Stewardship, Compliance and Accountability 23 Budgetary Information 23 Excess Expenditures Over Budget 23 Deficit Balances 23 Limitations on the Village's Tax Levy 24 3. Detailed Notes on All Funds 24 Deposits and Investments 24 Receivables 26 Restricted Assets 26 Capital Assets 27 Interfund Receivables/Payables and Transfers 29 Long-Term Obligations 30 Lease Disclosures 33 Net Position/Fund Balances 33 4. Other Information 35 Employees' Retirement System 35 Risk Management 40 Commitments and Contingencies 40 Effect of New Accounting Standards on Current-Period Financial Statements 41 14 Page 60 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 1. Summary of Significant Accounting Policies The accounting policies of the Village of Williams Bay, Wisconsin (the Village) conform to accounting principles generally accepted in the United States of America as applicable to governmental units. The accepted standard-setting body for establishing governmental accounting and financial reporting principles is the Governmental Accounting Standards Board (GASB). Reporting Entity This report includes all of the funds of the Villa ge. The reporting entity for the Village consists of the primary government and its component units. Component units are legally separate organizations for which the primary government is financially accountable or other organizations for which the nature and significance of their relationship with the primary government are such that their exclusion would cause the reporting entity's financial statements to be misleading. The Villa ge has not identified any organizations that meet this criteria. Government-Wide and Fund Financial Statements Government-Wide Financial Statements The statement of net position and statement of activities display information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues and other nonexchange revenues. Business-t ype activities are financed in whole or in part by fees charged to external parties for goods or services. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. The Villa ge does not allocate indirect expenses to functions in the statement of activities. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported as general revenues. Internally dedicated resources are reported as general revenues rather than as program revenues. Fund Financial Statements Financial statements of the Villa ge are organized into funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts, which constitute its assets, deferred outflows of resources, liabilities, deferred inflows of resources, net position/fund balance, revenues and expenditures/expenses. Funds are organized as major funds or nonmajor funds within the governmental and proprietary statements. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the Village or meets the following criteria: a. Total assets/deferred outflows of resources, liabilities/deferred inflows of resources, revenues or expenditures/expenses of that individual governmental or enterprise fund are at least 10% of the corresponding total for all funds of that category or type, and b. The same element of the individual governmental or enterprise fund that met the 10% test is at least 5% of the corresponding total for all governmental and enterprise funds combined. 15 Page 61 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 c. In addition, any other governmental or enterprise fund that the Villa ge believes is particularly important to financial statement users may be reported as a major fund. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The Village reports the following major governmental funds: General Fund General Fund accounts for the Villa ge's primary operating activities. It is used to account for and report all financial resources except those accounted for and reported in another fund. Special Revenue Fund EMS - Special Revenue Fund is used to account for and report related referendum revenues legally restricted or committed to supporting expenditures for the EMS program. Debt Service Fund Debt Service Fund is used to account for and report financial resources that are restricted, committed or assigned to expenditure for the payment of general long-term debt principal, interest and related costs, other than enterprise debt. Capital Projects Fund Capital Projects Fund is used to account for and report financial resources that are restricted, committed or assigned to expenditures for capital outlays, including the acquisition or construction of capital facilities and other capital assets. Enterprise Funds The Village reports the following major enterprise funds: Water Utility accounts for operations of the water system. Sewer Utility accounts for operations of the sewer system. The Village reports the following nonmajor governmental funds: Special Revenue Funds Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes (other than debt service or capital projects). Librar y Fund Police Department Donation Fund 2% Fire Dues Fund Fire Department Donation Fund Act 102 Fund Rescue Squad Donation Fund Recycling Fund Fireworks Fund Dare Fund American Rescue Plan Fund KNC Fund Tree Enhancement Fund Police 2025 Referendum Fund 16 Page 62 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 In addition, the Village reports the following fund type: Custodial Fund Custodial Fund is used to account for and report assets controlled by the Village and the assets are for the benefit of individuals, private organizations and/or other governmental units. Tax Collection Fund Measurement Focus, Basis of Accounting and Financial Statement Presentation Government-Wide Financial Statements The government-wide statement of net position and statement of activities are reported using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Property taxes are recognized as revenues in the year for which they are levied. Taxes receivable for the following year are recorded as receivables and deferred inflows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Special assessments are recorded as revenue when earned. Unbilled receivables are recorded as revenues when services are provided. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the Village's water utility and sewer utility and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Fund Financial Statements Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recorded when they are both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the Villa ge considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on long-term debt, claims, judgments, compensated absences and pension expenditures, which are recorded as a fund liability when expected to be paid with expendable available financial resources. Property taxes are recorded in the year levied as receivables and deferred inflows. They are recognized as revenues in the succeeding year when services financed by the levy are being provided. Intergovernmental aids and grants are recognized as revenues in the period the Villa ge is entitled to the resources and the amounts are available. Amounts owed to the Village which are not available are recorded as receivables and unavailable revenues. Amounts received before eligibility requirements (excluding time requirements) are met are recorded as liabilities. Amounts received in advance of meeting time requirements are recorded as deferred inflows. Revenues susceptible to accrual include propert y taxes, miscellaneous taxes, public charges for services, special assessments and interest. Other general revenues such as fines and forfeitures, inspection fees, recreation fees and miscellaneous revenues are recognized when received in cash or when measurable and available under the criteria described above. 17 Page 63 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 Proprietary and Fiduciary Funds Proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as described previously in this note. The proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the water and sewer utilities are charges to customers for sales and services. Special assessments are recorded as receivables and contribution revenue when levied. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. All Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities and deferred inflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity Deposits and Investments For purposes of the statement of cash flows, the Villa ge considers all highly liquid investments with an initial maturity of three months or less when acquired to be cash equivalents. Investment of Village funds is restricted by Wisconsin state statutes. Available investments are limited to: a. Time deposits in any credit union, bank, savings bank or trust company. b. Bonds or securities of any county, city, drainage district, technical college district, village, town or school district of the state. Also, bonds issued by a local exposition district, a local professional baseball park district, a local professional football stadium district, a local cultural arts district, the University of Wisconsin Hospitals and Clinics Authority or the Wisconsin Aerospace Authority. c. Bonds or securities issued or guaranteed by the federal government. d. The local government investment pool. e. Any security maturing in seven years or less and having the highest or second highest rating category of a nationally recognized rating agency. f. Securities of an open-end management investment company or investment trust, subject to various conditions and investment options. g. Repurchase agreements with public depositories, with certain conditions. The Villa ge has adopted an investment policy. That policy follows the state statute for allowable investments. 18 Page 64 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 Investments are stated at fair value, which is the amount at which an investment could be exchanged in a current transaction between willing parties. Fair values are based on methods and inputs as outlined in Note 3. No investments are reported at amortized cost. Adjustments necessary to record investments at fair value are recorded in the operating statement as increases or decreases in investment income. Investment income on commingled investments of municipal accounting funds is allocated based on avera ge balances. The difference between the bank statement balance and carrying value is due to outstanding checks and/or deposits in transit. See Note 3 for further information. Receivables Property taxes are levied in December on the assessed value as of the prior January 1. In addition to property taxes for the Village, taxes are collected for and remitted to the county government as well as the local school district and technical college district. Taxes for all state and local governmental units billed in the current year for the succeeding year are reflected as receivables and due to other taxing units on the accompanying statement of fiduciary net position. Property tax calendar - 2025 tax roll: Lien date and levy date December 2025 Tax bills mailed December 2025 Payment in full, or Januar y 31, 2026 First installment due Januar y 31, 2026 Second installment due Jul y 31, 2026 Tax sale - 2025 delinquent real estate taxes October 2028 Delinquent real estate taxes as of July 31 are paid in full by the County, which assumes the collection thereof. No provision for uncollectible accounts receivable has been made for the water and sewer utilities because the y have the right by law to place substantially all delinquent bills on the tax roll and other delinquent bills are generally not significant. During the course of operations, transactions occur between individual funds that may result in amounts owed between funds. Short-term interfund loans are reported as "due to and from other funds." Long-term interfund loans (noncurrent portion) are reported as "advances from and to other funds." Interfund receivables and payables between funds within governmental activities are eliminated in the statement of net position. Inventories and Prepaid Items Governmental fund inventories, if material, are recorded at cost based on the FIFO method using the purchases method of accounting. Proprietar y fund inventories are generally used for construction and/or for operation and maintenance work. They are not for resale. They are valued at cost based on weighted average and charged to construction and/or operation and maintenance expense when used. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased. Restricted Assets Mandatory segregations of assets are presented as restricted assets. Such segregations are required by bond agreements and other external parties. Current liabilities payable from these restricted assets are so classified. 19 Page 65 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 Capital Assets Government-Wide Financial Statements Capital assets, which include property, plant and equipment are reported in the government-wide financial statements. Capital assets are defined by the government as assets with an initial cost of more than $5,000 for general capital assets and $10,000 for infrastructure assets and an estimated useful life in excess of one year. All capital assets are valued at historical cost or estimated historical cost if actual amounts are unavailable. Donated capital assets are recorded at their estimated acquisition value at the date of donation. Depreciation of all exhaustible capital assets is recorded as an allocated expense in the statement of activities, with accumulated depreciation reflected in the statement of net position. Depreciation is provided over the assets' estimated useful lives using the straight-line method. The range of estimated useful lives by type of asset is as follows: Land improvements 5-20 Years Buildin gs4 0 Y e a r s Building improvements 5-25 Years Machinery and equipment 5-10 Years Vehicles 5-20 Years Infrastructure 20-50 Years Fund Financial Statements In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietar y fund operations are accounted for the same way as in the government-wide statements. Deferred Outflows of Resources A deferred outflow of resources represents a consumption of net assets that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) until that future time. Compensated Absences Under terms of employment, employees are granted sick leave and vacations in varying amounts. Vacation and sick leave pay is accrued in the government-wide and proprietar y fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements, and are payable with expendable resources. Payments for vacation and sick leave will be made at rates in effect when the benefits are used. Accumulated vacation and sick leave liabilities at December 31, 2025, are determined on the basis of current salary rates and include salary related payments. Long-Term Obligations All long-term obligations to be repaid from governmental and business-t ype resources are reported as liabilities in the government-wide statements. The long-term obligations consist primarily of notes and bonds payable and vested compensated absences. 20 Page 66 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 Long-term obligations for governmental funds are not reported as liabilities in the fund financial statements. The face value of debts (plus any premiums) are reported as other financing sources and payments of principal and interest are reported as expenditures. The accounting in proprietary funds is the same as it is in the government-wide statements. For the government-wide statements and proprietary fund statements, bond premiums and discounts are amortized over the life of the issue using the straight-line method. The balance at year end is shown as an increase or decrease in the liability section of the statement of net position. Leases The Villa ge is a lessor because it leases capital assets to other entities. As a lessor, the Village reports a lease receivable and corresponding deferred inflow of resources in both the fund financial statements and government-wide financial statements. The Village continues to report and depreciate the capital assets being leased as capital assets of the primary government. Deferred Inflows of Resources A deferred inflow of resources represents an acquisition of net assets that applies to a future period and therefore will not be recognized as an inflow of resources (revenue) until that future time. Equity Classifications Government-Wide Statements Equity is classified as net position and displayed in three components: a. Net Investment in Capital Assets - Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances (excluding unspent debt proceeds) of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction or improvement of those assets. b. Restricted Net Position - Consists of net position with constraints placed on their use either by 1) external groups such as creditors, grantors, contributors or laws or regulations of other governments or, 2) law through constitutional provisions or enabling legislation. c. Unrestricted Net Position - All other net positions that do not meet the definitions of "restricted" or "net investment in capital assets." When both restricted and unrestricted resources are available for use, it is the Villa ge's policy to use restricted resources first, then unrestricted resources as they are needed. Fund Statements Governmental fund balances are displayed as follows: a. Nonspendable - Includes fund balance amounts that cannot be spent either because they are not in spendable form or because legal or contractual requirements require them to be maintained intact. b. Restricted - Consists of fund balances with constraints placed on their use either by 1) external groups such as creditors, grantors, contributors or laws or regulations of other governments or 2) law through constitutional provisions or enabling legislation. 21 Page 67 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 c. Committed - Includes fund balance amounts that are constrained for specific purposes that are internally imposed by the government through formal action of the highest level of decision making authority. Fund balance amounts are committed through a formal action (resolution) of the Villa ge Board. This formal action must occur prior to the end of the reporting period, but the amount of the commitment, which will be subject to the constraints, may be determined in the subsequent period. Any changes to the constraints imposed require the same formal action of the Villa ge Board that originally created the commitment. d. Assigned - Includes spendable fund balance amounts that are intended to be used for specific purposes that do not meet the criteria to be classified as restricted or committed. The Villa ge Board has, by resolution, adopted a financial policy authorizing the Village Administrator to assign amounts for a specific purpose. Assignments may take place after the end of the reporting period. e. Unassigned - Includes residual positive fund balance within the general fund which has not been classified within the other above mentioned categories. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed or assigned for those purposes. Proprietary fund equity is classified the same as in the government-wide statements. The Villa ge considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available unless there are legal documents / contracts that prohibit doing this, such as in grant agreements requiring dollar for dollar spending. Additionally, the Village would first use committed, then assigned and lastly unassigned amounts of unrestricted fund balance when expenditures are made. See Note 3 for further information. Pension The fiduciary net position of the Wisconsin Retirement System (WRS) has been determined using the flow of economic resources measurement focus and accrual basis of accounting. This includes for purposes of measuring the following: • Net Pension Liability (Asset); • Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions; and • Pension Expense (Revenue). Information about the fiduciary net position of the WRS and additions to/deductions from WRS' fiduciary net position have been determined on the same basis as they are reported by the WRS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 22 Page 68 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 Basis for Existing Rates Water Utility Current water rates were approved by the Public Service Commission of Wisconsin on August 29, 2025 and became effective October 6, 2025. Sewer Utility Current sewer rates were approved by the Village Board on February 3, 2025 and became effective January 1, 2025. 2. Stewardship, Compliance and Accountability Budgetary Information A budget has been adopted for the General Fund, Debt Service Fund, and Special Revenue Funds - Library, Recycling, 2% Dues, EMS, Act 102, Fireworks. A budget has not been formally adopted for the Capital Projects Fund and Special Revenue Funds - Tree Enhancement, Dare, Fire Department Donations, Rescue Squad Donation, KNC, Police Department Donation and American Rescue Plan. Wisconsin Statute 65.90 requires that an annual budget be adopted for all funds. Excess Expenditures Over Budget The following funds had significant expenditures over budget: Fund Budgeted Expenditures Actual Expenditures Excess Expenditures Over Budget General Fund $ 3,698,799 $ 4,023,808 $ 325,009 Rec ycling Fund 92,000 135,250 43,250 2% Fire Dues Fund 10,000 28,830 18,830 Fireworks Fund 25,000 25,697 697 The Villa ge controls expenditures at the fund level. Some individual functions experienced expenditures which exceeded appropriations. The detail of those items can be found in the Village's year-end budget to actual report. Deficit Balances Generally accepted accounting principles require disclosure of individual funds that have deficit balances at year end. As of December 31, 2025, the following individual funds held a deficit balance: Fund Amount Reason Recycling Fund $ 2,598 Expenditures exceeded available revenues Police 2025 Referendum Fund 4,909 Expenditures exceeded available revenues The recycling fund and police 2025 referendum fund deficits are anticipated to be funded with future contributions, general tax revenues or long-term borrowing. 23 Page 69 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 Limitations on the Village's Tax Levy Wisconsin law limits the Village's future tax levies. Generally the Village is limited to its prior tax levy dollar amount (excluding TIF Districts), increased by the greater of the percentage change in the Villa ge's equalized value due to net new construction or zero percent. Changes in debt service from one year to the next are generally exempt from this limit with certain exceptions. The Village is required to reduce its allowable levy by the estimated amount of fee revenue it collects for certain services, if those services were funded in 2013 by the property tax levy. Levies can be increased above the allowable limits if the amount is approved by referendum. 3. Detailed Notes on All Funds Deposits and Investments The Village's deposits and investments at year end were comprised of the following: Carrying Value Statement Balances Associated Risks Deposits $ 15,538,970 $ 14,286,198 Custodial credit U.S. treasuries 1,465,724 1,465,724 Custodial credit and interest rate Certificates of deposit (negotiable) 320,699 320,699 Custodial credit, credit, concentration of credit and interest rate Total deposits and investments $ 17,325,393 $ 16,072,621 Reconciliation to financial statements Per statement of net position: Unrestricted cash and investments $ 10,222,121 Restricted cash and investments 3,989,671 Per statement of fiduciar y net position, fiduciary fund: Tax collection fund 3,113,601 Total deposits and investments $ 17,325,393 Deposits in each local and area bank are insured by the FDIC in the amount of $250,000 for time and savings accounts (including NOW accounts) and $250,000 for demand deposit accounts (interest-bearing and non-interest-bearing). In addition, if deposits are held in an institution outside of the state in which the government is located, insured amounts are further limited to a total of $250,000 for the combined amount of all deposit accounts. Bank accounts are also insured by the State Deposit Guarantee Fund in the amount of $1,000,000. However, due to the nature of this fund, recovery of material principal losses may not be significant to individual municipalities. This coverage has not been considered in computing custodial credit risk. The Villa ge maintains collateral agreements with its banks. At December 31, 2025, the banks had pledged various government securities in the amount of $11,000,000 to secure the Village's deposits. 24 Page 70 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 The Village categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The valuation methods for recurring fair value measurements are as follows: • Market December 31, 2025 Investment Type Level 1 Level 2 Level 3 Total U.S. treasuries $ 1,465,724 $ - $ - $ 1,465,724 Certificates of deposit (negotiable) - 320,699 - 320,699 Total $ 1,465,724 $ 320,699 $- $ 1,786,423 Custodial Credit Risk Deposits Custodial credit risk is the risk that in the event of a financial institution failure, the Village's deposits may not be returned to the Village. As of December 31, 2025, $215,724 of the Village's total bank balances were exposed to custodial credit risk as follows: Uninsured and uncollateralized $ 215,724 Investments For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the Village will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Village does not have any investments exposed to custodial credit risk. Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the value of an investment. As of December 31, 2025, the Village's investments were as follows: Maturity (in Months) Investment Type Fair Value Less Than 3 Less Than 12 U.S. treasuries $ 1,465,724 $ - $ 1,465,724 Certificates of deposit (negotiable) 320,699 - 320,699 Total $ 1,786,423 $- $ 1,786,423 See Note 1 for further information on deposit and investment policies. 25 Page 71 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 Receivables All of the receivables on the balance sheet are expected to be collected within one year. Governmental funds report unavailable or unearned revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Property taxes levied for the subsequent year are not earned and cannot be used to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of unavailable revenue and unearned revenue reported in the governmental funds were as follows: Unearned Unavailable Property taxes receivable for subsequent year $ 4,329,301 $ - Reimbursable services receivable - 44,634 Total unearned/unavailable revenue for governmental funds $ 4,329,301 $4 4 , 6 3 4 Restricted Assets The following represent the balances of the restricted assets: Long-Term Debt Accounts Construction - Used to report proceeds of revenue bond issuances that are restricted for use in construction. Equipment Replacement Account The sewe r utility established an equipment replacement account to be used for significant mechanical equipment replacement as required by the Wisconsin Department of Natural Resources. Impact Fee Account The Villa ge has received impact fees which must be spent in accordance with the local ordinance and state statutes. Any unspent funds must be refunded to the current property owner. Following is a list of restricted assets at December 31, 2025: Restricted Assets Construction account, utility and village $ 3,632,698 Equipment replacement account 146,893 Impact fee account 210,080 Total $ 3,989,671 26 Page 72 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 Capital Assets Capital asset activity for the year ended December 31, 2025, was as follows: Beginning Balance Additions Deletions Ending Balance Governmental Activities Capital assets not being depreciated: Land $ 1,779,105 $ - $ - $ 1,779,105 Construction in progress 687,197 1,158,827 1,416,016 430,008 Total capital assets not being depreciated 2,466,302 1,158,827 1,416,016 2,209,113 Capital assets being depreciated: Buildings and structures 5,456,682 309,469 - 5,766,151 Land improvements and infrastructure 228,525 - - 228,525 Machinery and equipment 5,112,543 217,640 140,973 5,189,210 Infrastructure 4,074,495 1,196,784 - 5,271,279 Total capital assets being depreciated 14,872,245 1,723,893 140,973 16,455,165 Total capital assets 17,338,547 2,882,720 1,556,989 18,664,278 Less accumulated depreciation for: Buildings and structures (3,447,527) (123,748) - (3,571,275) Land improvements and infrastructure (31,422) (5,713) - (37,135) Machinery and equipment (3,143,333) (343,362) 140,973 (3,345,722) Infrastructure (1,130,093) (102,685) - (1,232,778) Total accumulated depreciation (7,752,375) (575,508) 140,973 (8,186,910) Net capital assets being depreciated 7,119,870 1,148,385 - 8,268,255 Total governmental activities capital assets, net as reported in the statement of net position $ 9,586,172 $ 2,307,212 $ 1,416,016 $ 10,477,368 Depreciation expense was charged to functions as follows: Governmental Activities General government $ 82,445 Public safety 181,704 Public works 238,901 Culture, education and recreation 72,458 Total governmental activities depreciation expense $ 575,508 27 Page 73 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 Business-Type Activities Beginning Balance Additions Deletions Ending Balance Sewer Capital assets not being depreciated: Construction in progress $ 687,782 $ 1,241,676 $ 1,882,202 $ 47,256 Total capital assets not being depreciated / amortized 687,782 1,241,676 1,882,202 47,256 Capital assets being depreciated: Infrastructure and plant 7,493,332 1,882,200 - 9,375,532 Machinery and equipment 391,992 32,743 22,902 401,833 Total capital assets being depreciated 7,885,324 1,914,943 22,902 9,777,365 Total capital assets 8,573,106 3,156,619 1,905,104 9,824,621 Less accumulated depreciation for: Infrastructure and plant (4,819,735) (160,254) - (4,979,989) Machinery and equipment (391,992) - 22,902 (369,090) Total accumulated depreciation (5,211,727) (160,254) 22,902 (5,349,079) Net capital assets being depreciated 2,673,597 1,754,689 - 4,428,286 Net sewer capital assets $ 3,361,379 $ 2,996,365 $ 1,882,202 $ 4,475,542 Beginning Balance Additions Deletions Ending Balance Water Capital assets not being depreciated: Land $ 22,352 $ - $ - $ 22,352 Construction in progress 624,272 3,661,243 227,186 4,058,329 Total capital assets not being depreciated 646,624 3,661,243 227,186 4,080,681 Capital assets being depreciated: Source of supply 309,091 227,186 - 536,277 Pumping 508,082 - - 508,082 Treatment 2,658,409 - - 2,658,409 Transmission and distribution 6,981,091 24,938 4,807 7,001,222 Administrative and general 659,368 37,736 22,901 674,203 Total capital assets being depreciated 11,116,041 289,860 27,708 11,378,193 Total capital assets 11,762,665 3,951,103 254,894 15,458,874 Less accumulated depreciation for: Source of supply (281,251) (12,258) - (293,509) Pumping (489,371) (7,432) - (496,803) Treatment (2,306,101) (87,594) - (2,393,695) Transmission and distribution (2,936,814) (131,573) 4,807 (3,063,580) Administrative and general (503,417) (26,826) 22,901 (507,342) Total accumulated depreciation (6,516,954) (265,683) 27,708 (6,754,929) Net capital assets being depreciated 4,599,087 24,177 - 4,623,264 Net water capital assets $ 5,245,711 $ 3,685,420 $ 227,186 $ 8,703,945 Business-type activities capital assets, net as reported in the statement of net position $ 8,607,090 $ 6,681,785 $ 2,109,388 $ 13,179,487 28 Page 74 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 Depreciation expense was charged to functions as follows: Business-Type Activities Sewer $ 178,008 Water 247,929 Total business-type activities, net as reported in the statement of net position expense $ 425,937 Depreciation expense may be different from business-type activity accumulated depreciation additions because of joint metering, salvage, cost of removal, internal allocations or costs associated with the disposal of assets. Interfund Receivables/Payables and Transfers Interfund Receivables/Payables The following is a schedule of interfund receivables and payables including any overdrafts on pooled cash and investment accounts: Receivable Fund Payable Fund Amount General Fund KNC Fund $ 31,020 General Fund Rec ycling Fund 2,598 General Fund Police 2025 Referendum Fund 4,864 Total, fund financial statements 38,482 Less fund eliminations (38,482) Total internal balances, government-wide statement of net position $- All amounts are due within one year. Transfers The following is a schedule of interfund transfers: Fund Transferred To Fund Transferred From Amount Principal Purpose General Fund Water Utilit y $ 75,248 Propert y tax equivalent General Fund Sewer Utilit y 2,780 Property tax equivalent Total, fund financial statements $7 8 , 0 2 8 Generally, transfers are used to (1) move revenues from the fund that collects them to the fund that the budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the receipts to the debt service fund and (3) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. 29 Page 75 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 Long-Term Obligations Long-term obligations activity for the year ended December 31, 2025, was as follows: Beginning Balance Increases Decreases Ending Balance Amounts Due Within One Year Governmental Activities Bonds and notes payable: General obligation bonds and notes $ 7,281,088 $ - $ 619,217 $ 6,661,871 $ 588,934 (Discounts)/Premiums 304,775 - 20,746 284,029 - Total bonds and notes payable 7,585,863 - 639,963 6,945,900 588,934 Other liabilities: Compensated absences * 205,182 22,475 - 227,657 65,764 Total governmental activities long- term liabilities $ 7,791,045 $2 2 , 4 7 5 $6 3 9 , 9 6 3 $ 7,173,557 $ 654,698 Business-Type Activities Bonds and notes payable: General obligation bonds and notes $ 8,030,700 $ - $ 662,570 $ 7,368,130 $ 251,066 Revenue debt from direct borrowings or direct placement 219,072 4,202,940 5,628 4,416,384 190,735 (Discounts)/Premiums 498,353 - 27,686 470,667 - Total bonds and notes payable 8,748,125 4,202,940 695,884 12,255,181 441,801 Other liabilities: Compensated absences * 49,032 5,577 - 54,609 20,464 Total business-type activities long- term liabilities $ 8,797,157 $ 4,208,517 $6 9 5 , 8 8 4 $ 12,309,790 $ 462,265 *The change in the compensated absences liability is presented as a net change. In accordance with Wisconsin Statutes, total general obligation indebtedness of the Village may not exceed 5% of the equalized value of taxable property within the Village's jurisdiction. The debt limit as of December 31, 2025, was $82,186,475. Total general obligation debt outstanding at year end was $14,030,001. General Obligation Debt All general obligation debt payable is backed by the full faith and credit of the Villa ge. Debt in the governmental funds will be retired by future property tax levies or tax increments accumulated by the debt service fund. Business-type activities debt is payable by revenues from user fees of those funds or, if the revenues are not sufficient, by future tax levies. Governmental Activities General Obligation Debt Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2025 GO Refunding Bonds 07/10/17 04/01/37 2.75-4.00% $ 3,465,169 $ 2,106,060 GO Refunding Bonds 06/01/16 04/01/27 2.00-2.50 960,000 200,000 GO Refunding Bonds 05/13/20 04/01/31 1.86-2.67 2,075,461 1,179,447 GO Refunding Bonds 09/07/22 04/01/42 3.50-5.00 3,573,411 3,176,364 Total governmental activities, general obligation debt $ 6,661,871 30 Page 76 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 Business-Type Activities General Obligation Debt Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2025 GO Refunding Bonds 07/10/17 04/01/37 2.75-4.00% $ 169,831 $ 113,942 GO Refunding Bonds 05/13/20 04/01/31 1.86-2.67 194,539 110,553 GO Refunding Bonds 09/07/22 04/01/42 3.50-5.00 8,036,589 7,143,635 Total business-type activities, general obligation debt $ 7,368,130 Debt service requirements to maturity are as follows: Governmental Activities Business-Type Activities General Obligation Bonds and Notes General Obligation Bonds and Notes Years Principal Interest Principal Interest 2026 $ 588,934 $ 225,396 $ 251,066 $ 310,238 2027 599,820 208,456 265,180 298,038 2028 503,458 191,767 396,542 282,234 2029 526,361 168,932 408,639 262,296 2030 540,324 152,374 429,676 242,194 2031-2035 1,994,647 550,477 2,175,353 900,423 2036-2040 1,428,181 219,149 2,361,819 458,051 2041-2042 480,146 19,391 1,079,855 43,609 Total $ 6,661,871 $ 1,735,942 $ 7,368,130 $ 2,797,083 Revenue Debt Business-type activities revenue bonds are payable only from revenues derived from the operation of the water utility. The sewer utility has pledged future sewer utility revenues, net of specified operating expenses, to repay revenue bonds issued in 2024. Proceeds from the bonds provided financing for the sewer utility. The bonds are payable solely from sewer utility revenues and are payable through 2044. Annual principal and interest payments on the bonds are expected to require 39.21% of net revenues. The total principal and interest remaining to be paid on the bonds is $2,301,889. Principal and interest paid for the current year and total customer net revenues were $11,791 and $309,020, respectively. The water utilit y has pledged future water utility revenues, net of specified operating expenses, to repay revenue bonds issued in 2024. Proceeds from the bonds provided financing for the water utility. The bonds are payable solely from water utility revenues and are payable through 2044. Annual principal and interest payments on the bonds are expected to require 35.35% of net revenues. The total principal and interest remaining to be paid on the bonds is $3,073,046. Principal and interest paid for the current year and total customer net revenues were $12,273 and $457,527, respectively. Revenue debt payable at December 31, 2025, consists of the following: 31 Page 77 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 Business-Type Activities Revenue Debt Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2025 Sewer Utility Clean Water Loan* 07/10/24 05/01/44 2.145% $ 2,530,928 $ 2,525,300 (1) Total Sewer Utility 2,525,300 * The debt noted is directly placed with a third party. (1) - During 2024 the utility was authorized to issue $3,682,950 of Sewer System Clean Water Fund revenue bonds. The original amount reported above has been issued as of December 31, 2025. The repayment schedule is for the amount issued. Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2025 Water Utility Safe Drinking Water Loan* 07/10/24 05/01/44 2.145% $ 1,891,084 $ 1,891,084 (2) Total Water Utility 1,891,084 * The debt noted is directly placed with a third party. (2) - During 2024 the utility was authorized to issue $2,026,050 of Water System Safe Drinking Water Loan revenue bonds. The original amount reported above has been issued as of December 31, 2025. The repayment schedule is for the amount issued. Total business-type activities, revenue debt $ 4,416,384 Debt service requirements to maturity are as follows: Business-Type Activities Revenue Debt Years Principal Interest 2026 $ 190,735 $ 91,136 2027 194,826 88,551 2028 199,005 84,327 2029 203,273 80,012 2030 207,634 75,605 2031-2035 1,106,915 308,542 2036-2040 1,230,835 183,293 2041-2044 1,083,161 47,085 Total $ 4,416,384 $ 958,551 Other Debt Information Estimated payments of compensated absences are not included in the debt service requirement schedules. 32 Page 78 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 Lease Disclosures Lessor - Lease Receivables Business-Type Activities Lease Receivables Description Date of Inception Final Maturity Interest Rates Receivable Balance December 31, 2025 T-Mobile Water Cell Tower 01/01/09 12/31/39 4.25% $ 480,431 U.S. Cellular Cell Tower 01/01/97 12/31/27 4.25 9,914 AT&T Water Cell Tower 01/01/14 12/31/43 4.25 587,117 Total business-type activities $ 1,077,462 The Village recognized $58,109 of lease revenue during the fiscal year. The Village recognized $14,010 of interest revenue during the fiscal year. Net Position/Fund Balances Net position reported on the government-wide statement of net position at December 31, 2025, includes the following: Governmental Activities Net investment in capital assets: Land $ 1,779,105 Construction in progress 430,008 Other capital assets 16,455,165 Accumulated depreciation (8,186,910) Less long-term debt outstanding (6,661,871) Plus unspent capital related debt proceeds 89,983 Less unamortized debt premium (284,029) Total net investment in capital assets $ 3,621,451 33 Page 79 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 Governmental Funds Governmental fund balances reported on the fund financial statements at December 31, 2025, include the following: General Fund EMS Fund Debt Service Fund Capital Projects Fund Nonmajor Funds Total Fund Balances Nonspendable: Prepaid items $ 22,342 $ - $ - $ - $ 3,432 $ 25,774 Restricted for: Debt service - - 617,881 - - 617,881 Librar y ---- 2 6 8 , 7 7 2 268,772 Capital project - - - 89,983 - 89,983 EMS - 479,480 - - - 479,480 2% Fire dues ---- 3 9 , 5 0 7 3 9 , 5 0 7 Act 102 - - - - 21,391 21,391 Subtotal - 479,480 617,881 89,983 329,670 1,517,014 Committed to: 2022 Bond Arbitrage 113,083 ---- 1 1 3 , 0 8 3 Fire Department building 450,000 ---- 4 5 0 , 0 0 0 Pier slips 275,125 ---- 2 7 5 , 1 2 5 D A R E ---- 2 , 7 1 1 2 , 7 1 1 Police Departmen t donations ---- 9 , 0 0 3 9 , 0 0 3 Fire Department donations ---- 8 5 , 3 4 7 8 5 , 3 4 7 Rescue Squad donations ---- 3 2 , 3 9 9 3 2 , 3 9 9 F i r e w o r k s ---- 1 3 , 8 9 0 1 3 , 8 9 0 Tree Enhancement F u n d ---- 1 , 7 4 5 1 , 7 4 5 Capital projects and equipment - - - 464,737 - 464,737 KNC - - - - 1,515 1,515 Subtotal 838,208 - - 464,737 146,610 1,449,555 Assigned to: 2026 budget 6 9 , 6 8 4---- 6 9 , 6 8 4 Unassigned (Deficit) 1,940,224 - - - (7,507) 1,932,717 Total fund balances $ 2,870,458 $ 479,480 $ 617,881 $ 554,720 $ 472,205 $ 4,994,744 34 Page 80 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 Business-Type Activities Net investment in capital assets: Land $ 22,352 Construction in progress 4,105,585 Other capital assets 21,155,558 Accumulated depreciation (12,104,008) Less long-term debt outstanding (11,784,514) Plus unspent capital related debt proceeds 3,542,715 Less unamortized debt premium (470,667) Less capital related accounts payable (704,805) Total net investment in capital assets $ 3,762,216 4. Other Information Employees' Retirement System Plan Description The WRS is a cost-sharing multiple-employer defined benefit pension plan. WRS benefits and other plan provisions are established by Chapter 40 of the Wisconsin Statutes. Benefit terms may only be modified by the legislature. The retirement system is administered by the Wisconsin Department of Employee Trust Funds (ETF). The system provides coverage to all eligible State of Wisconsin, local government and other public employees. All employees, initially employed by a participating WRS employer on or after July 1, 2011, expected to work at least 1,200 hours a year (880 hours for teachers and school district educational support employees) and expected to be employed for at least one year from employee's date of hire are eligible to participate in the WRS. ETF issues a standalone Annual Comprehensive Financial Report (ACFR), which can be found at https://etf.wi.gov/about-etf/reports-and-studies/financial-reports-and-statements . Additionally, ETF issued a standalone Wisconsin Retirement System Financial Report, which can also be found using the link above. Vesting For employees beginning participation on or after January 1, 1990, and no longer actively employed on or after April 24, 1998, creditable service in each of five years is required for eligibility for a retirement annuity. Participants employed prior to 1990 and on or after April 24, 1998, and prior to July 1, 2011, are immediately vested. Participants who initially became WRS eligible on or after July 1, 2011, must have five years of creditable service to be vested. Benefits Provided Employees who retire at or after age 65 (54 for protective occupation employees, 62 for elected officials and executive service retirement participants, if hired on or before 12/31/2016) are entitled to a retirement benefit based on a formula factor, their final average earnings and creditable service. Final average earnings is the average of the participant's three highest annual earnings period. Creditable service includes current service and prior service for which a participant received earnings and made contributions as required. Creditable service also includes creditable military service. The retirement benefit will be calculated as a money purchase benefit based on the employee's contributions plus matching employer's contributions, with interest, if that benefit is higher than the formula benefit. 35 Page 81 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 Vested participants may retire at age 55 (50 for protective occupations) and receive an actuarially-reduced benefit. Participants terminating covered employment prior to eligibility for an annuity may either receive employee-required contributions plus interest as a separation benefit or leave contributions on deposit and defer application until eligible to receive a retirement benefit. The WRS also provides death and disability benefits for employees. Postretirement Adjustments The Employee Trust Funds Board may periodically adjust annuity payments from the retirement system based on annual investment performance in accordance with s. 40.27, Wis. Stat. An increase (or decrease) in annuity payments may result when investment gains (losses), together with other actuarial experience factors, create a surplus (shortfall) in the reserves, as determined by the system's consulting actuary. Annuity increases are not based on cost of living or other similar factors. For Core annuities, decreases may be applied only to previously granted increases. By law, Core annuities cannot be reduced to an amount below the original, guaranteed amount (the floor) set at retirement. The Core and Variable annuity adjustments granted during recent years are as follows: Year Core Fund Adjustment % Variable Fund Adjustment % 2015 2.9 2.0 2016 0.5 (5.0) 2017 2.0 4.0 2018 2.4 17.0 2019 0.0 (10.0) 2020 1.7 21.0 2021 5.1 13.0 2022 7.4 15.0 2023 1.6 (21.0) 2024 3.6 15.0 Contributions Required contributions are determined by an annual actuarial valuation in accordance with Chapter 40 of the Wisconsin Statutes. The employee required contribution is one-half of the actuarially determined contribution rate for General category employees, including Teachers, Executives and Elected Officials. Starting on January 1, 2016, the Executives and Elected Officials category was merged into the General Employee category. Required contributions for protective employees are the same rate as general employees. Employers are required to contribute the remainder of the actuarially determined contribution rate. The employer may not pay the employee required contribution unless provided for by an existing collective bargaining agreement. During the reporting period, the WRS recognized $162,514 in contributions from the Village. Contribution rates for the plan year reported as of December 31, 2025 are: Employee Category Employee Employer General (Executives & Elected Officials) 6.90 % 6.90 % Protective with Social Security 6.90 14.30 Protective without Social Security 6.90 19.10 36 Page 82 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 Pension Liability, Pension Expense (Revenue), Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At December 31, 2025, the Village reported a liability of $179,918 for its proportionate share of the net pension liability. The net pension liability was measured as of December 31, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2023 rolled forward to December 31, 2024. No material changes in assumptions or benefit terms occurred between the actuarial valuation date and the measurement date. The Villa ge's proportion of the net pension liability was based on the Village's share of contributions to the pension plan relative to the contributions of all participating employers. At December 31, 2024, the Villa ge's proportion was 0.01094953%, which was an increase of 0.00026432% from its proportion measured as of December 31, 2023. For the year ended December 31, 2025, the Village recognized pension expense (revenue) of $214,428. At December 31, 2025, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between projected and actual experience $ 558,746 $ 525,046 Changes in assumptions 53,385 - Net differences between projected and actual earnings on pension plan investments 273,397 - Changes in proportion and differences between employer contributions and proportionate share of contributions 1,183 4,201 Employer contributions subsequent to the measurement date 182,005 - Total $ 1,068,716 $ 529,247 $182,005 reported as deferred outflows of resources related to pension resulting from the WRS Employer's contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability (asset) in the year ending December 31, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pension will be recognized in pension expense as follows: Years Ending December 31: Deferred Outflows of Resources and Deferred Inflows of Resources (Net) 2026 $ 107,903 2027 371,997 2028 (93,348) 2029 (29,088) 37 Page 83 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 Actuarial Assumptions The total pension liability in the actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Actuarial Valuation Date: December 31, 2023 Measurement Date of Net Pension Liability (Asset): December 31, 2024 Experience Study: January 1, 2021 - December 31, 2023 Published November 19, 2024 Actuarial Cost Method: Entry Age Normal Asset Valuation Method: Fair Value Long-Term Expected Rate of Return: 6.8% Discount Rate: 6.8% Salary Increases: Wage Inflation Seniority/Merit 3.0% 0.1% - 5.7% Mortality: 2020 WRS Experience Mortality Table Postretirement Adjustments*: 1.7% * No postretirement adjustment is guaranteed. Actual adjustments are based on recognized investment return, actuarial experience and other factors. 1.7% is the assumed annual adjustment based on the investment return assumption and the postretirement discount rate. Includes the impact of known Market Recognition Account deferred gains/losses on the liability for dividend payments. Actuarial assumptions are based upon an experience study conducted in 2024 that covered a three-year period from January 1, 2021 to December 31, 2023. Based on this experience study, actuarial assumptions used to measure the Total Pension Liability changed from prior year, including seniority (merit) and separation rates. The Total Pension Liability for December 31, 2024 is based upon a roll-forward of the liability calculated from the December 31, 2023 actuarial valuation. 38 Page 84 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 Long-Term Expected Return on Plan Assets The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Asset Allocation Targets and Expected Returns* as of December 31, 2024 Core Fund Asset Class Asset Allocation % Long-Term Expected Nominal Rate of Return % Long-Term Expected Real Rate of Return %** Public Equity 38 7.0 4.3 Public Fixed Income 27 6.1 3.4 Inflation Sensitive 19 4.8 2.1 Real Estate 8 6.5 3.8 Private Equity/Debt 20 9.5 6.7 Leverage*** (12) 3.7 1.1 Total Core Fund 100 7.5 4.8 Variable Fund Asset U.S. Equities 70 6.5 3.8 International Equities 30 7.4 4.7 Total Variable Fund 100 6.9 4.2 * Asset Allocations are managed within established ranges; target percentages may differ from actual monthly allocations ** New England Pension Consultants' Long-Term U.S. CPI (Inflation) Forecast: 2.6% *** The investment policy used for the Core Fund involves reducing equity exposure by leveraging lower-volatility assets, such as fixed income securities. Currently, an asset allocation target of 12% policy leverage is used subject to an allowable range of up to 20%. 39 Page 85 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 Single Discount Rate A single discount rate of 6.8% was used to measure the total pension liability for the current and prior year. This discount rate is based on the expected rate of return on pension plan investments of 6.8% and a municipal bond rate of 4.08% (Source: "20-Bond GO Index" is the Bond Buyer Index, general obligation, 20 years to maturity, mixed quality as of December 31, 2024. In describing this index, the Bond Buyer notes that the bonds' average quality is roughly equivalent to Moody's Investors Service's Aa2 rating and Standard and Poor's Corp.'s AA.) Because of the unique structure of WRS, the 6.8% expected rate of return implies that a dividend of approximately 1.7% will always be paid. For purposes of the single discount rate, it was assumed that the dividend would always be paid. The projection of cash flows used to determine this single discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on these assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments (including expected dividends) of current plan members. Therefore, the investment rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Village's Proportionate Share of the Net Pension Liability (Asset) to Changes in the Discount Rate The following presents the Village's proportionate share of the net pension liability (asset) calculated using the discount rate of 6.80%, as well as what the Village's proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (5.80%) or 1-percentage-point higher (7.80%) than the current rate: 1% Decrease to Discount Rate (5.8%) Current Discount Rate (6.8%) 1% Increase to Discount Rate (7.8%) Village's proportionate share of the net pension liability (asset) $ 1,687,874 $ 179,918 $ (891,440) Pension Plan Fiduciary Net Position Detailed information about the pension plan's fiduciary net position is available in separately issued financial statements available at https://etf.wi.gov/about-etf/reports-and-studies/financial- reports-and-statements. Risk Management The Village is exposed to various risks of loss related to torts; theft of, damage to or destruction of assets; errors and omissions; workers compensation; and health care of its employees. The Village purchases commercial insurance to provide coverage for losses from (torts; theft of, damage to or, destruction of assets; errors and omission; workers compensation; and health care of its employees). However, other risks, such as (torts; theft of, damage to or destruction of assets; errors and omission; workers compensation; and health care of its employees) are accounted for and financed by the Village in the general fund. Commitments and Contingencies Claims and judgments are recorded as liabilities if all the conditions of Governmental Accounting Standards Board pronouncements are met. The liability and expenditure for claims and judgments are only reported in governmental funds if it has matured. Claims and judgments are recorded in the government-wide statements and proprietary funds as expenses when the related liabilities are incurred. 40 Page 86 of 133 Village of Williams Bay Notes to Financial Statements December 31, 2025 From time to time, the Village is party to various pending claims and legal proceedings. Although the outcome of such matters cannot be forecasted with certainty, it is the opinion of management and the Villa ge attorney that the likelihood is remote that any such claims or proceedings will have a material adverse effect on the Village's financial position or results of operations. The Village has active construction projects as of December 31, 2025. Work that has been completed on these projects but not yet paid for (including contract retainages) is reflected as accounts payable and expenditures. Contingent Liability - Arbitrage The Villa ge is subject to provisions of the Internal Revenue Code and U.S. Treasury Regulations governing arbitrage rebate requirements on tax-exempt debt. Under these provisions, any excess investment earnings, as defined by federal law, must be rebated to the federal government. The Village monitors compliance with these regulations on an ongoing basis. Based on currently known facts and circumstances, management is unable to reasonably estimate the amount of any potential liability; however, it is believed that a liability currently exists. If and when the liability becomes both probable and estimable, the Village will recognize the obligation in its financial statements. Effect of New Accounting Standards on Current-Period Financial Statements The Governmental Accounting Standards Board (GASB) has approved the following: • Statement No. 103, Financial Reporting Model Improvements • Statement No. 104, Disclosure of Certain Capital Assets • Statement No. 105, Subsequent Events When they become effective, application of these standards may restate portions of these financial statements. 41 Page 87 of 133 REQUIRED SUPPLEMENTARY INFORMATION Page 88 of 133 Variance With Original and Final Final Actual Budget Revenues Taxes 1,869,194$ 1,867,284 $ (1,910) $ Special assessments 4,000 4,360 360 Intergovernmental 484,900 552,592 67,692 Regulation and compliance 265,050 300,238 35,188 Public charges for services 703,600 976,510 272,910 Investment income 48,680 220,076 171,396 Miscellaneous 257,000 163,270 (93,730) Total revenues 3,632,424 4,084,330 451,906 Expenditures Current: General government 767,827 1,053,468 (285,641) Public safety 1,738,132 1,787,444 (49,312) Public works 514,250 508,445 5,805 Culture and recreation 670,090 671,471 (1,381) Conservation and development 8,500 2,516 5,984 Debt service: Interest and fiscal charges - 464 (464) Total expenditures 3,698,799 4,023,808 (325,009) Excess (deficiency) of revenues over expenditures (66,375) 60,522 126,897 Other Financing Sources Proceeds from sale of capital assets 1,000 37,670 36,670 Transfers in 77,000 78,028 1,028 Total other financing sources 78,000 115,698 37,698 Net change in fund balance 11,625$ 176,220 164,595 $ Fund Balance, Beginning 2,694,238 Fund Balance, Ending 2,870,458$ Budgeted Amounts Village of Williams Bay Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund Year Ended December 31, 2025 See notes to required supplementary information 42 Page 89 of 133 Budgeted Amounts Variance With Original Final and Final Actual Budget Revenues Taxes 928,077$ 928,077 $ - $ Total revenues 928,077 928,077 - Expenditures Current: Public safety 1,050,000 834,023 215,977 Total expenditures 1,050,000 834,023 215,977 Net change in fund balance (121,923)$ 94,054 215,977 $ Fund Balance, Beginning 385,426 Fund Balance, Ending 479,480$ Village of Williams Bay Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - EMS Fund Year Ended December 31, 2025 See notes to required supplementary information 43 Page 90 of 133 Proportionate Share of the Net Plan Fiduciary Proportion Proportionate Pension Liability Net Position WRS Fiscal of the Net Share of the (Asset) as a as a Percentage Year End Pension Net Pension Covered Percentage of of the Total Date Liability (Asset) Liability (Asset) Payroll Covered Payroll Pension Liability 12/31/15 0.00892179% 144,977 $ 1,120,270 $ 12.94% 98.20% 12/31/16 0.00910618% 75,056 1,146,606 6.55% 99.12% 12/31/17 0.00962129% (285,667) 1,223,898 -23.34% 102.93% 12/31/18 0.01018619% 362,392 1,351,655 26.81% 96.45% 12/31/19 0.01067872% (344,330) 1,358,752 -25.34% 102.96% 12/31/20 0.01067516% (666,465) 1,312,663 -50.77% 105.26% 12/31/21 0.01046841% (843,773) 1,337,600 -63.08% 106.02% 12/31/22 0.01054892% 558,850 1,448,959 38.57% 95.72% 12/31/23 0.01068521% 158,868 1,459,607 10.88% 98.85% 12/31/24 0.01094953% 179,918 1,615,980 11.13% 98.79% Schedule of Employer Contributions - Wisconsin Retirement System Year Ended December 31, 2025 Contributions in Relation to the Contributions Village's Contractually Contractually Contribution as a Percentage Year End Required Required Deficiency Covered of Covered Date Contributions Contributions (Excess) Payroll Payroll 12/31/16 89,382 $ 89,382 $ - $ 1,146,606$ 7.80% 12/31/17 88,383 88,383 - 1,223,898 7.22% 12/31/18 104,137 104,137 - 1,331,492 7.82% 12/31/19 123,777 123,777 - 1,358,818 9.11% 12/31/20 128,065 128,065 - 1,317,104 9.72% 12/31/21 131,395 131,395 - 1,337,601 9.82% 12/31/22 141,600 141,600 - 1,448,960 9.77% 12/31/23 142,127 142,127 - 1,459,670 9.74% 12/31/24 159,068 159,068 - 1,615,981 9.84% 12/31/25 182,005 182,005 - 1,736,975 10.48% Village of Williams Bay Schedule of Proportionate Share of the Net Pension Liability (Asset) - Wisconsin Retirement System Year Ended December 31, 2025 See notes to required supplementary information 44 Page 91 of 133 Village of Williams Bay Notes to Required Supplementary Information Year Ended December 31, 2025 45 Budgetary Information Budgetary information is derived from the annual operating budget and is presented using the same basis of accounting for each fund as described in Note 1. The budget amounts presented are as presented in the original budget and no amendments were adopted during the year. The Village may authorize transfers of budgeted amounts within departments. Transfers between departments and changes to the overall budget must be approved by a two-thirds board action. Appropriations lapse at year end unless specifically carried over. There were no carryovers to the following year. Budgets are adopted at the function level of expenditure. Wisconsin Retirement System The amounts determined for each fiscal year were determined as of the calendar year-end that occurred within the fiscal year. Changes in benefit terms. There were no changes of benefit terms for any participating employer in the Wisconsin Retirement System. Changes in assumptions. Based on a three-year experience study conducted in 2021 covering January 1, 2018 through December 31, 2020, the ETF Board adopted assumption changes that were used to measure the total pension liability beginning with the year-end December 31, 2021, including the following: • Lowering the long-term expected rate of return from 7.0% to 6.8% • Lowering the discount rate from 7.0% to 6.8% • Lowering the price inflation rate from 2.5% to 2.4% • Lowering the postretirement adjustments from 1.9% to 1.7% • Mortality assumptions were changed to reflect updated trends by transitioning from the Wisconsin 2018 Mortality Table to the 2020 WRS Experience Mortality Table Based on a three-year experience study conducted in 2018 covering January 1, 2015 through December 31, 2017, the ETF Board adopted assumption changes that were used to measure the total pension liability beginning with the year-ended December 31, 2018, including the following: • Lowering the long-term expected rate of return from 7.2% to 7.0% • Lowering the discount rate from 7.2% to 7.0% • Lowering the wage inflation rate from 3.2% to 3.0% • Lowering the price inflation rate from 2.7% to 2.5% • Lowering the postretirement adjustments from 2.1% to 1.9% • Mortality assumptions were changed to reflect updated trends by transitioning from the Wisconsin 2012 Mortality Table to the Wisconsin 2018 Mortality Table Page 92 of 133 SUPPLEMENTARY INFORMATION Page 93 of 133 Police Fire Department Department Rescue American Police 2025 Tree Total Library 2% Fire Act 102 Recycling Dare KNC Donation Donation Squad Donation Fireworks Rescue Plan Referendum Enhancement Nonmajor Fund Dues Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Funds Assets Cash and investments 269,055$ 39,507 $ 21,391 $ - $ 2,711 $ - $ 9,123 $ 85,347 $ 32,399 $ 13,890 $ - $ - $ 1 , 7 4 5 $ 475,168 $ Taxes receivable 240,000 - - 100,500 - - - - - - - 399,980 - 740,480 Accounts receivable - - - - - 32,535 - - - - - - - 32,535 Prepaid items 2,533 - - - - 899 - - - - - - - 3,432 Total assets 511,588$ 39,507 $ 21,391 $ 100,500 $ 2,711 $ 33,434 $ 9,123 $ 85,347 $ 32,399 $ 13,890 $ - $ 399,980 $ 1,745 $ 1,251,615$ Liabilities, Deferred Inflows of Resources and Fund Balances (Deficit) Liabilities Accounts payable 283$ - $ - $ - $ - $ - $ 120 $ - $ - $ - $ - $ 4 5 $ - $ 4 4 8 $ Due to other funds - - - 2,598 - 31,020 - - - - - 4,864 - 38,482 Total liabilities 283 - - 2,598 - 31,020 120 - - - - 4,909 - 38,930 Deferred Inflows of Resources Unearned revenues 240,000 - - 100,500 - - - - - - - 399,980 - 740,480 Fund Balances (Deficits) Nonspendable 2,533 - - - - 899 - - - - - - - 3,432 Restricted 268,772 39,507 21,391 - - - - - - - - - - 329,670 Committed - - - - 2,711 1,515 9,003 85,347 32,399 13,890 - - 1,745 146,610 Unassigned (deficit) - - - (2,598) - - - - - - - (4,909) - (7,507) Total fund balances (deficit) 271,305 39,507 21,391 (2,598) 2,711 2,414 9,003 85,347 32,399 13,890 - (4,909) 1,745 472,205 Total liabilities, deferred inflows of resources and fund balances (deficits) 511,588$ 39,507 $ 21,391 $ 100,500 $ 2,711 $ 33,434 $ 9,123 $ 85,347 $ 32,399 $ 13,890 $ - $ 399,980 $ 1,745 $ 1,251,61 5$ Village of Williams Bay Combining Balance Sheet - Nonmajor Governmental Funds December 31, 2025 Special Revenue Funds 46 Page 94 of 133 Police Fire Department Department Rescue American Police 2025 Tree Total Library 2% Fire Act 102 Recycling Dare KNC Donation Donation Squad Donation Fireworks Rescue Plan Referendum Enhancement Nonmajor Fund Dues Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Funds Revenues Taxes 250,314$ - $ - $ 76,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 326,314 $ Intergovernmental 109,934 50,972 20,453 8,162 - - - - - - 227,730 - 4,452 421,703 Public charges for service 4,300 - - - - - - - - - - - -4 , 3 0 0 Investment income 17,707 - - - - - - 3,043 292 - - - - 21,042 Miscellaneous 18,207 - - - - 122,118 4,672 34,127 525 27,614 - - - 207,263 Total revenues 400,462 50,972 20,453 84,162 - 122,118 4,672 37,170 817 27,614 227,730 - 4,452 980,622 Expenditures Current: Public safety - 28,860 - - - - - 31,177 1,321 - - 4,909 - 66,267 Public works - -- 135,250 - - - -- -- - - 135,250 Culture and recreation 380,218 - - - - 122,034 - -- 25,697 - - 7,038 534,987 Capital outlay - - - - - - - -- - 227,730 - - 227,730 Total expenditures 380,218 28,860 - 135,250 - 122,034 - 31,177 1,321 25,697 227,730 4,909 7,038 964,234 Net changes in fund balance 20,244 22,112 20,453 (51,088) - 84 4,672 5,993 (504) 1,917 - (4,909) (2,586) 16,388 Fund Balance, Beginning 251,061 17,395 938 48,490 2,711 2,330 4,331 79,354 32,903 11,973 - - 4,331 455,817 Fund Balance, Ending (Deficit) 271,305$ 39,507 $ 21,391 $ (2,598) $ 2,711 $ 2 , 4 1 4 $ 9 , 0 0 3 $ 85,347 $ 32,399 $ 13,890 $ - $ ( 4 , 9 0 9 ) $ 1,745 $ 472,205 $ Special Revenue Funds Village of Williams Bay Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds Year Ended December 31, 2025 4 Page 95 of 133 Proclamation Emergency Medical Services Week May 17 - 23, 2026 WHEREAS, emergency medical services is a vital public service; and WHEREAS, the members of emergency medical services teams are ready to provide lifesaving care to those in need 24 hours a day, seven days a week; and WHEREAS, access to quality emergency care dramatically improves the survival and recovery rate of those who experience sudden illness or injury; and WHEREAS, emergency medical services fills healthcare gaps by providing important, out- of-hospital care, including preventative medicine, follow-up care, and access to telemedicine; and WHEREAS, the emergency medical services system consists of first responders, emergency medical technicians, paramedics, emergency medical dispatchers, firefighters, police officers, educators, administrators, pre-hospital nurses, emergency nurses, emergency physicians, trained members of the public, and other out of hospital medical care providers; and WHEREAS, the members of emergency medical services teams, whether career or volunteer, engage in thousands of hours of specialized training and continuing education to enhance their lifesaving skills; and WHEREAS, it is appropriate to recognize the value and the accomplishments of emergency medical services providers by designating the Emergency Medical Services Week; now THEREFORE, I Adam Jaramillo, Village President of the Village of Williams Bay, in recognition of this event do hereby proclaim the week of May 17 - 23, 2026, as EMERGENCY MEDICAL SERVICES WEEK The 51st anniversary of EMS Week theme is EMS WEEK: We Care. For Everyone. I encourage the community to observe this week with appropriate programs, ceremonies, and activities in honor of the EMS profession and the essential service it provides. Given under my hand and seal of the Village of Williams Bay this 4th Day of May, 2026. Signed: _______________________________ Attest: _____________________________ Page 96 of 133 Proclamation National Police Week Peace Officers’ Memorial Day May 10 - 16, 2026 WHEREAS, the police officers of Williams Bay have worked devotedly and unselfishly on behalf of the people of this community, regardless of peril or hazard to themselves; these officers have safeguarded the lives and property of all in Williams Bay; and by their service and their dedicated efforts, these men and women have earned the gratitude of the Village of Williams Bay; and WHEREAS, in 1962, President John F. Kennedy was authorized by Congress to proclaim May 15th of each year as “National Peace Officers Memorial Day” in honor of all peace officers who have been killed or disabled in the line of duty; and WHEREAS, the Presidential Proclamation also designated that each year the calendar week in which May 15th occurs or precedes shall be proclaimed as “Police Appreciation Week” in recognition of the service given by the men and women who, day and night, stand guard in our communities, and proclaim May 15, 2026, as “Peace Officers Memorial Day.” NOW, THEREFORE, I, Adam Jaramillo, President of the Village of Williams Bay do hereby proclaim the week of May 10-16, 2026, as “Police Appreciation Week” in the Village of Williams Bay and encourage all citizens to observe the week with law enforcement officers, past and present, who, by their faithful and loyal devotion to their responsibilities, have rendered a dedicated service to their communities, and proclaim May 15, 2026, as “Peace Officers Memorial Day” in honor of those law enforcement officers who, through their courageous deeds, have made the ultimate sacrifice in service to their community or have become disabled in the performance of duty. Given under my hand and seal of the Village of Williams Bay this 4th Day of May, 2026. Signed: _______________________________ Attest: _____________________________ Page 97 of 133 Page 98 of 133 Page 99 of 133 Page 100 of 133 Page 101 of 133 Page 102 of 133 Page 103 of 133 Page 104 of 133 Page 105 of 133 Page 106 of 133 Page 107 of 133 Page 108 of 133 Page 109 of 133 Page 110 of 133 Page 111 of 133 Page 112 of 133 Page 113 of 133 Page 114 of 133 Page 115 of 133 Page 116 of 133 Page 117 of 133 Page 118 of 133 Page 119 of 133 Page 120 of 133 Page 121 of 133 Page 122 of 133 Page 123 of 133 Page 124 of 133 Page 125 of 133 Page 126 of 133 Page 127 of 133 Page 128 of 133 Page 129 of 133 VILLAGE OF WILLIAMS BAY Office of the Zoning Administrator 250 Williams Street | PO Box 580 | Williams Bay | WI | 53191 | USA | williamsbay.org email: zoning@williamsbay.org | Phone: 262-245-2704 | Fax: 262-245-2705 April 30, 2026 TO: Williams Bay Village Board Members RE: Pier Replacement and Expansion Application Review for Chippewa Resort Property Owner: Chippewa Enterprises, Four Sails, LLC, and Julie Bond Property Address: 55 N Walworth Avenue (WOP 00091), 43 N Walworth Avenue (WOP 00092), and 39 N Walworth Avenue (WOP 00093) DNR Application: #IP-SE-2025-65-03762 The proposed project is for the replacement and expansion of 3 piers located at Chippewa Resort, more precisely known as 55 N Walworth Avenue (WOP 00091), 43 N Walworth Avenue (WOP 00092), and 39 N Walworth Avenue (WOP 00093). The proposal includes fully removing the existing piers and replacing each with increased length and number of slips, to reduce the amount of mooring buoys beyond the pierhead line. The new total number of slips proposed is 42, and the new total number of mooring buoys proposed is 2. 55 N Walworth Avenue is proposing a structure that is 206 feet long, with setbacks of 12.5 feet on the left, and 12.5 feet on the right. 43 N Walworth Avenue is proposing a structure that is 172.5 feet long, with setbacks of 31.8 feet on the left, and 35 feet on the right. 39 N Walworth Avenue is proposing a structure that is 135.8 feet long, with setbacks of 12.5 feet on the left, and 21.4 feet on the right. The WI DNR has approved the project, including the length expansion of each pier, and a copy of the permit is included with the Village application. Per Village Ordinance Section 281-1.H(3)(e)(1): Location of wharves and piers regulated. No wharf or pier shall be located, built, constructed or maintained on a lot or parcel within a distance of 12.5 feet from a riparian proprietor's property line, where such property line intersects the shoreline as defined in Subsection H(2)(a) above. The proposed modifications to all three piers are now in compliance with Section 281-5.F(2) or Section 281-1.H.(3) (e)(1) regarding the 12.5’ distance from riparian right lines. The Zoning Department recommends approval of all three proposed pier permits. Respectfully submitted, Allison Schwark Zoning Administrator Page 130 of 133 12.5 FT 46.7 FT 35.0 FT 31.8 FT 134.7 FT 172.5 FT 206.0 FT 12.5 FT21.4 FT 47.5 FT 31.0 FT 12.5 FT 44.2 FT This document is not a licensed survey. The placement of the pier is estimated based on aerial imagery and issubject to a 1 degree tolerance. The riparian lines shown are estimated and do not represent actual property lines orlegal boundaries. By signing this document, the customer acknowledges that they are approving the pier's locationand understand that any changes made to the pier's location after installation may result in additional charges.SIGNATURE:HOBBS_MIKE_CHIPPEWA_GISDRAWN BY: - +HQU\4/7/2026GIS LAYOUT 3AFeet 049.02298.0441 Michael Hobbs Page 131 of 133 Signature: Email: Michael Hobbs (Apr 9, 2026 05:11:04 CDT) Michael Hobbs chippewahobbs@gmail.com Page 132 of 133 HOBBS_MIKE_CHIPPEWA_GIS_LAYOUT3A Final Audit Report 2026-04-09 Created: 2026-04-08 By: Jake Henry (jhenry@summersetmarine.com) Status: Signed Transaction ID: CBJCHBCAABAA2CKJwaIiRDRDN03VVDXz6wBDoAS2onzY "HOBBS_MIKE_CHIPPEWA_GIS_LAYOUT3A" History Document created by Jake Henry (jhenry@summersetmarine.com) 2026-04-08 - 7:11:10 PM GMT Document emailed to chippewahobbs@gmail.com for signature 2026-04-08 - 7:12:16 PM GMT Email viewed by chippewahobbs@gmail.com 2026-04-09 - 10:04:13 AM GMT Signer chippewahobbs@gmail.com entered name at signing as Michael Hobbs 2026-04-09 - 10:11:02 AM GMT Document e-signed by Michael Hobbs (chippewahobbs@gmail.com) Signature Date: 2026-04-09 - 10:11:04 AM GMT - Time Source: server Agreement completed. 2026-04-09 - 10:11:04 AM GMT Page 133 of 133