Mequon, Wisconsin Development News

City Council Amends Meeting Minutes on Lodging Tax, Reviews Utility Finances and Fund Balance Policy

The council discussed and amended the minutes from a previous finance workshop, specifically regarding the consensus on implementing a 6% lodging tax. Initially, the minutes stated a consensus to move forward with implementation, but Alderman Meyer clarified that the consensus was to prepare documents for a final decision, not to implement the tax immediately. The amendment changed 'implementing' to 'considering' to reflect this nuance. The discussion also touched upon the preparation of enabling documents for the lodging tax and vehicle registration fee, with plans to bring them forward in conjunction with the budget. Additionally, the council reviewed the financial status and policies of the water and sewer utilities, including debt coverage, reserves, and rate adjustments. The water utility's financial health was analyzed using both cash and utility-based methodologies, noting its current rate adequacy above the Public Service Commission's benchmark. Projections for future rate cases and potential impacts on customer bills were presented. For the sewer utility, the discussion focused on its self-funding capabilities for capital projects and the need for ongoing rate adjustments due to a flat tax levy. Policies regarding reserve calculations for both utilities were discussed, aligning with recommendations for six months of operating expenditures plus next year's debt payment. A new water funding policy was proposed, incorporating PSC math projections and purchase water adjustment considerations. Lastly, the council reviewed the city's general fund balance policy, comparing it to peer communities and considering the impact of fund balance on credit ratings. The potential savings from improved credit ratings were estimated, and the feasibility of increasing the fund balance policy was debated.