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June 8th, 2026, Village Board meeting to order, and we first need to find out who is here,
or we need a roll call.
Batia.
Here.
Caris.
Here.
Ventrini.
Here.
Anastacio.
Here.
Pollack.
Here.
DeGroote.
He's here.
Trustee Washburn is excused.
I pledge allegiance to the flag of the United States of America, and to the Republic for
which it stands, one nation, under God, indivisible, with liberty and justice for all.
Okay, so we have a presentation from Baker Tilly, it's the 2025 audit presentation.
All right, well good evening everyone.
My name is Wendy Younger, I'm the principal responsible for the Villages audit.
Included in your package, you should have a several page handout, which is what I will
use to go through both of the final documents that you should have also received, one being
the audited statements, and one being the reporting and insight document.
On the first page of the handout, I've highlighted the objective of the audit, which was to
issue an opinion on the financial statements.
You've done that and included within your audited statements as a clean, unmodified
opinion, same type of opinion you've received in the past, and the highest level of assurance
that you can obtain from us as your auditors.
As a reminder, that unmodified opinion means that the information is believed to be materially
accurate.
All disclosures that are required to be included have been, we follow generally accepted accounting
principles, and accounting principles have been consistently applied from year to year.
On the end of the presentation, I will highlight a new standard, or GASB, that will be effective
for 26 that will have some significant impact on the Villages reporting.
But before we get to that, on the next page of the handout, I've included some very high-level
financial information.
I'm going to go through this relatively quickly.
I will give you some page references so you can look at this in more detail at your convenience.
The first column there is the general fund.
This can be found on page 52 of your audited statements.
When we look at this, we look at this in comparison to budget, $33 million actual revenue
compared to a $30.6 million budget.
The general fund ended the year favorably in its revenue category by a positive variance
to budget of $2.5 million.
Two reasons, or I'm sorry, three reasons for that.
One, licenses and permits were $750,000 over budget, and that was due to the significant
activity in TID 5 and 7.
Health charges for services were $958,000 over budget, and that's where your ambulance
revenue flows through.
That was $600,000 over budget, and then various fire protection fees were $400,000 over budget.
The last item that was significantly over budget was investment income.
That was $415,000 over budget.
You had a great year from a market perspective, so, again, favorable variances there.
When we look at the expenditure category, the next row, $31.2 million of actual compared
to a 31.2 actual compared to a 32.1 budget.
So you were under budget in your expenditure category, again, a favorable variance of roughly
$894,000.
Your general government category came in $527,000 under budget.
The largest pieces of that legal was $100,000 under budget, and then computer maintenance
supplies were $70,000.
A lot of other counts that were under budget, but nothing of that significant nature.
The other category that was under budget, public works, $482,000 under budget.
Largest items there, salt and sand, came in $100,000 less than expected, and signs and
striping were $115,000 under budget.
Are you on a specific page right now?
I'm in the highlights.
The couple page document.
All right, we're not seeing what you're saying.
You're either going too quickly or I'm not seeing it.
Are you just giving us extra information?
I'm giving you extra information.
I'm just looking for light items of everything you're talking about.
Sorry about that.
I just want to make sure I'm on the right page.
Right.
52?
Yeah.
All right.
And I'll slow down so that I'm not going through this so quickly, but again, that column
is presented in a bit more detail on page 52.
But I'm about mid page in that first column.
When you put together your budget, you budgeted to use fund balance of roughly $1.46 million.
Overall, very favorable results during the year you added almost $2 million to fund balance,
so a positive swing of $3.3 million compared to budget.
When you add that $1.9 million to fund balance, you end the year at $14.8 million of fund
balance in your general fund.
As I typically mention, these are monies that you have available for various purposes.
And as you can see at the bottom of that page, two of them are already broken out.
340,000 is non-spendable.
That is monies that have been spent in 25 that will get recognized as expenditures in
26.
So items like prepaid insurance that you need to pay before your end, but it's really January
type activity.
The other portion, $1.36 million, that is what you use to balance your 26 budget.
So we pull that out.
If everything happens as planned, you would need that in order to cover any shortfalls.
The remaining balance included within your fund balance in the general fund, $13.1 million.
That is referred to as unassigned.
That is your working capital, your contingency, funds that you have on hand to utilize as needed in unexpected situations.
That represents 41% of your operating budget.
We typically look for that to be somewhere between 10 and 25%.
You are on the higher side, but again, that affords you some flexibility when things
are needed or unexpected events occur.
You do have the money on hand in most cases before you need to go to borrow money.
The next column is your debt service fund.
So your debt service fund, you levy a tax, you make principal and interest payments on
village debt.
That fund is located on page four of your financial statements.
5.5 million of revenue.
Most of that is taxes and then you also have the contribution that comes in from Caledonia.
You paid 5.3 million of principal and interest on your long term obligations.
You added a small portion to fund balance and ended the year at 3.79 million.
All that money in your debt service fund is restricted.
That's not money you have to utilize for any other purpose except for debt payments until
the debt of the village would be paid in full.
Next column is your TID 5 capital project fund.
This is also on page four of your audited statements.
As you can see in the summary, 34.6 million of revenue.
Roughly half of that is increment.
Another good portion of that, roughly half of that is the money that comes in from FoxCon
for the makeup of the difference between what was expected to happen and what did.
And then the remaining portion, 3.2 million of that is investment income.
You spent 36 million out of TID 5.
You utilized 1.5 million in fund balance and ended the year at 73.7 million.
Again, that is also fund balance that is restricted.
It can only be used for TID 5 purposes.
The last column here is an accumulation of numerous other funds that the village has.
Can be found starting in the back of your booklet on page 61.
This column here incorporates 24 more village funds all for various purposes.
I'm not going to go through that in detail, but I did want to highlight where you can see
the activity that accumulates to that information there.
Just to highlight a couple points there, that 27 million of revenue includes six TIDs.
So there is TID activity that flows through that in the form of increment.
There's also your Broad Improvement Fund and your Capital Project Fund.
So again, lots of activity, but again, across 24 funds.
So when we look at those funds collectively for the year, those funds added almost 5.4 million
to fund balance, ended the year at 32.9 million.
And then you can see the breakout on the bottom.
There's 20 million that is restricted.
That would be mainly your TID activity and impact fees.
Any type of fund that has a particular regulatory purpose.
The remaining balance is on a signed 12.7 million.
And again, if you look in the back of your booklet, you'll see what that additional 12 million is set aside for.
If we move to the next page, this is the last page of financial information.
So on this page, I've highlighted the operations of the sewer utility.
This follows a different accounting methodology.
So we don't use the term fund balance, we use the term net position.
This is a full accrual accounting process.
This can be found on page seven.
The income statement is included on that page.
And we'll start with that.
When we look at the activity of the sewer utility, we don't compare that to budget.
We typically look at that in comparison to a prior year.
So essentially in 2024, the sewer utility broke even.
Added 86,000 to net position.
You can see for 25, the sewer utility added almost 9 million to net position.
Couple reasons for that.
You did see an increase in revenue.
Customer charges were up roughly 500,000.
You saw a decrease in your treatment cost.
So you paid less out for treatment.
That was approximately 600,000.
And then the other largest contributing factor is the capital contributions role,
where you'll see that to be 6.6 million during the year.
That's up 5 million over the previous year.
And again, that's the TID activity.
As the TID does work, the infrastructure gets contributed over to the sewer utility,
who then maintains it on a go forward basis.
So overall, sewer added almost 9 million to net position, ended the year at 135 million.
Again, I remind you, very large number that includes all of your infrastructure, all your capital assets.
So there's a very large dollar there because of that additional capital.
Overall though, on page 8 of your statements, we do provide a cash flow.
For the sewer utility, you'll note sewer cash went up, a little bit over $4 million,
ended the year at 32 million of cash in your sewer utility of which 2 million was restricted.
So essentially roughly 30 million available to fund that program and do what you need to do within the village.
Before we switch to the last page, I just want to point out a couple other items included in your footnotes.
There's an extensive section on page 29 through 33 that highlights the long term obligations of the village.
When we look at the long term obligations, we look at what does the village owe, and what does the sewer utility owe.
So one is titled governmental activities, one is business type activities.
I just want to point out the village long term obligations, ended the year at 253 million,
and the sewer fund ended at 22 million.
When you look at that, keep in mind there's a very large portion of revenue bonds that are sitting within the village section,
194 million for all of the TID activity.
But probably the most important section of that is there is a paragraph that follows those two tables that highlights the borrowing capacity of the village.
The village can borrow up to 5% of its equalized value that equates to roughly 354 million.
As of the end of the year, you had approximately 55 million of general obligation debt outstanding.
That limit only applies to geo debt.
The revenue bonds are supported by revenue sources not by tax levy.
So when you look at that, as of the end of the year, roughly 300 million in remaining borrowing capacity as you go forward.
And as you can imagine, that number ebbs and flows as your equalized value changes and as you make principal payments on your debt or
on your own new funds, so just wanted to note that.
On the last page, I'm going to switch gears a little bit and go over to the other document that we issue as part of the audit process,
which is the reporting and insights document that's got more of a solid green cover.
That document again, accomplishes several purposes for us.
We communicate what we need to from our audit process.
We have some very standard and customary communication that we need to include in there.
Just a couple items I will point out included within the earlier section of that report.
There are some highlighted material weaknesses.
There is segregation of duties, controls, lacking over the payroll process.
And when I say that, I only mean there's not enough people to completely segregate the payroll process within the village.
Also, there's a material weakness regarding material journal entries and the fact that we prepare the audited statements.
So we do become part of your internal controls.
Neither the financial material entries or segregation of duties is something unusual or
unexpected for organizations the size of the village.
In fact, most of my clients, small and large, have those type of material weaknesses.
You always need to keep in mind the cost benefit of eliminating those and putting enough resources on hand to be able to do that.
The only other item I will highlight, I know when I began, I talked about a new governmental accounting standard that will be effective for the village.
There's actually two in 26 and one in 27, but the one that will affect the village is GASB 103.
It's really going to change the way your statements look and feel.
So the management discussion and analysis, which is that narrative portion, will be really revamped.
The standard requires much more detail, much more explanation.
A lot of more details, really encouraging transparency on what happened at organizations during the year.
Your sewer statement will look and feel different.
Bottom line will not change, but the buckets in which it's presented will change.
And then the budgetary information that is included within your statements back in that I believe when I highlighted the general fund on page 52, that will change.
There's more detail that needs to be added.
There will be a footnote that explains all variances between original and final budget.
And then final budget and actual revenue.
So there'll be a lot of information that will be provided.
Make sure we work with Kathy and her team to make sure the villages position well to implement that.
Again, there's going to be some leg work up front.
So just want to mention that.
And then the last item included in that report, as I noted when I began some required information that we need to include, but nothing I need to draw your attention to.
And then lastly, I have included my email address, my direct line.
Happy to speak with any of you.
Again, I know I go through this at a very high level and very quickly.
But happy to have conversations with any of you to talk about any of this in more detail or
our audit process, what we look at, what we don't look at, happy to share that information.
So please feel free to reach out.
But I will do my best to answer any questions you might have now about any of the information I've presented.
Any thoughts for Wendy?
You're drinking through a fire hose with the audit here.
I do have a question and it's something that goes back years and years when we formed TID-5.
We took on a lot of the borrowing.
This board, as it was constructed at the time, we voted for a lot of water bonding, sewer bonding, general bonding.
And the numbers were so outside and the village's ratios, the accounting ratios,
the current ratio, the quick ratio and whatnot, were very top heavy because of what we thought was a very prudent risk that we were taking to form the TID, to fund the TID.
And knowing that we had certain guarantees from the players at the time of Foxconn.
We had certain guarantees from the state of Wisconsin.
We had the Racine County as a co-signer because we didn't have the financial heft ourselves to be able to do what we're trying to do.
Moody's and Standard and Poor's and others took an eye to that and they're like, well, we're going to ding you.
We don't know why because on paper, it looks good, but again, they're uncomfortable with where the ratios were starting out.
And so we took some hits on that and the Boobirds were out there saying the sky was falling and Mount Pleasant was going to go bankrupt.
And of course, none of that happened and everything that we were planning on in terms of repayment schedules and whatnot, we never missed a payment.
And subsequently, Standard and Poor's and Moody's and all that.
I know have bumped our credit ratings back up, I believe, to where they were before any of this started.
Can you comment on any of that?
I'm not sure what part to answer.
Again, I think you are.
Are our ratings, you know, where do they really need to be?
I think they are.
I think that you're moving back up in the right direction.
I think the positive improvement, you really needed to prove you could do it, right?
And you've done that, right?
With the results and again, the ability to make the payments, your tids are in decent position,
five's in a decent position.
So everything is going in the right direction, the direction you would have hoped it would have gone when you began the project.
I'd like to make a couple of comments.
Number one, obviously, you know, this whole report is very detailed and it is time to digest what I appreciate the summary,
if you have provided, and again, based on the numbers, I think there is a good standing.
When I am reviewing the audit report every year, I mean, you order the numbers wherever they are.
You are not going to, you know, like present us.
So you're presenting the numbers as they are, the actual versus the budget and the variance is everything.
But what I'm looking for is a, if you have any areas of concern or any kind of a weakness is identified.
And so based on your comment, I'm pretty comfortable where we are.
And thank you for your report.
Thank you.
All right, is everybody good?
Well, thank you, Wendy.
Appreciate your, the way that you handle something that's not easy to explain.
And you've done it down to a level where we can get it.
Okay, so let's move on to public comment members of the public are welcome to provide comments in any manner.
Please fill out a comment form, and the president will recognize you.
Use the microphone, state your name and address for the public record.
Comments are limited to three minutes.
Can we hear from Mike Brown up here at the podium, name and address?
Good evening, and thank you for the time.
Mike Brown, I'm 5922, Brown Road.
This has been a namesake, or my namesake road for named after my great-grandparents.
So I have great pride in living on there, and I'm here to speak about the Pike River construction.
And the necessity to have the entrance that has been a driveway for my residents since 1977.
And the proposed providence drive to go to Brown Road.
If you look at the safety aspects of Brown Road and the high amount of traffic we currently have,
the amount you're going to increase that by with 93 possible residential homes.
And all the other activity that's going on with Microsoft and what have you.
Before any final plant confirmation has happened to really reconsider the necessity to have two more
entrances on a very high and safety effective area.
There's been four rear end collisions just in front of my house, and unfortunately I was one of them about three years ago.
While waiting to turn into my driveway, waiting for oncoming traffic with the hill just west of where this road is proposed, we're ended.
My neighbor to the other side of where this road is proposed, seven months pregnant, was rear ended right in that area.
So I would really plead that we really look at the necessity with all the other entrances going into this area.
Do we really want to increase the traffic that much more on Brown Road?
Not to mention the children that are being dropped off for the condo, it's right in that exact same spot every day.
It's a major safety concern.
So I just ask that you reconsider that portion before any final approvals are made.
Thank you for your time.
Steve Michaels.
Does anybody else signed up for a public comment?
Okay. My name is Steve Michaels, 5812 Brown Road.
I'm here today speaking because I needed you voting members to know that there are still some existing property line issues with the development.
That they're proposing a sanctuary at Pike River and a group of us homeowners along Brown Road on
the southern edge of the development have gotten together because we all have disagreements with the details of what's being shown in the final
plot drawings and the preliminary civil plan drawings.
And it basically regards to the property lines.
And when they were going through, for example, there are existing land survey markers in the back that have been in place since the fifties and sixties.
And they don't seem to have been taken into consideration when they looked at that southern property line.
Basically, I believe they ignored that.
And because of that, there's a number of sheds and fences that they are calling incursions onto their land.
And that is not what our understanding is.
So these homes were established in the fifties and seventies and been using the land to those land survey markers since they were put in.
So I grew up in this house.
I was born in 65, so it kind of tells you I do know the history of the land, both my property
and the surrounding properties.
And what I wanted to put forth today is we weren't feeling that our voices were being heard.
So we got together as a united group and we've provided and so we got and hired council.
And there's a couple of people within the village that would have been notified this afternoon on that.
Sam and Robin were notified of that.
And so I want to make sure that you guys are aware of that prior to the vote that you guys are going to do today.
So that's really all I have to say.
Appreciate your thoughts.
Okay, thank you.
Okay, anybody else willing to speak?
No?
In that case, we'll close the public comment and we can move on to the consent agenda.
Before we motion for the consent agenda, if I could just mention to you guys,
the final plan was approved by the plan commission.
It's sitting on our consent agenda for action tonight while there may be some questions.
There may be some civil questions regarding that.
Did you want to address any of that?
We did receive a letter, a copy of the letter from some of the residences that are suing
the or sending a letter of notice to the developer for the Sanctuary at Pike River.
What they're asserting is that there are property line rights or property line discrepancies as he attested to.
That is a civil matter between the two different property owners,
the developer who owns the big parcel and what the individual smaller property owners are saying.
That will proceed through the civil process, that's why they have a legal advisor.
As far as what you're doing here tonight, if they end up prevailing, then it ends up coming back to you.
But from our process, their civil suit does not stop your process and
the other property owners' property rights for what you are making a decision on.
Again, they may prevail, and then it'll end up changing things.
We don't adjudicate that.
That'll end up going through their scene counting courts, okay?
What's in front of you is your final plat that you are reviewing,
which again is based on what has been submitted, and then that is going into the other,
the developer's property rights.
So again, it does not change what they need to do.
It does not say that by you approving this, it does not negate what they're doing.
It doesn't cause a problem for what they're doing, because they've already filed notice with the developer.
And again, it's a civil matter that is between the two, the different property owners.
So are they questioning the legitimacy of the certified survey map?
Again, that's a civil matter.
What they're saying is that there's adverse possession and things like that.
Whether the markers were wrong, whether a survey at one time was wrong.
Again, all I have is the letter that their attorney provided,
just giving the village a copy of it.
The villages are not a party to it.
Being on the planning commission, Mr. President, I can add to that because that the letter is a civil matter.
It was not part of the discussion.
It was not presented to the planning commission.
So what we have on the agenda is the final plat for approval as recommended by the planning commission.
And I am reading the description, the developer.
The village had already approved the preliminary plat.
So now, based on a couple of conditions on the preliminary plat and some requirement,
what's on the agenda is, and what was on the agenda of the planning commission was that the developer came with those changes amendment.
And that's what the planning commission discussed, and that's what the planning commission has recommended for approval of the village.
I agree with the administrator that if the results of the civil matter are not according to the plat,
the approval, my guess is that the developer will have to make the adjustment.
Because we are approving the plat as presented and as discussed at the planning commission.
So if the court rules against that, then it will have to be dealt with at that time by the developer and between the residences.
And they probably will come back to both the planning commission and the village board to make those changes.
Right, so if it's proven that there's hair on the plat, on the CSM, that gets worked out.
I think one thing we all have to be aware that most of us residents is now I'm speaking of the residents.
We are not always aware of what's going on in the court level, what's the responsibility of the elected officials on this board
or the planning commission versus many what's going on in the court system and everything.
So sometimes the things overlap.
And it looks to me that this is one of those that we are doing our duty.
The residences have gone after or gone to the civil court for their concerns against the developer.
So regarding the consent agenda.
Okay.
I have a question.
So, Rom, you're on the planning commission.
Are you aware of these issues at the committee level when you plan this?
No.
So there was no knowledge of any of this.
No knowledge.
The letter like Tammy said that the village received the letter.
Okay.
From the attorney.
We got a copy.
The letter was sent to the company.
It was sent to SST old green Bay road LLC and Cal Atlantic.
Group LLC and that is the developers and the landowners for sanctuary at Pike.
River.
And we just received a copy of it.
Okay.
Carbon copy.
So we are not a plaintiff.
We are not a.
It's knowledge.
It's knowledge that you that the planning commission did not have prior to making the decision of recommending this.
This plan map.
Is that correct?
That's correct.
Okay.
What knowledge or disclosures did you have to show, you know, boundary lines.
egress.
You know, who drew that up?
It was the developer that drew drew that up.
Well, no, the developer, the preliminary plan had been approved.
Okay.
So now this is the final plan.
And so the planning commission, the discussion was if you look at the item one agenda, there's a details of the plan.
And it lists what the changes have been made.
95 foot single family located.
I'm trying to read the changes with minor changes, including the elimination of one lot, lot 52 on the West side, which is approximately one half acre.
Fronting old, old green Bay road.
So these were the changes which were discussed and the last planning commission because again preliminary plan has been approved.
So now we're going from the preliminary to the final.
So they eliminated one lot and then they eliminated one more.
Lord, which was a far more outlawed to on the south of the property.
And out loud one remain a retain the proposed public park and wetland area.
So these were the changes that brought with planning commission and planning commission discuss and we didn't see any problem and hands the recommendation for the approval.
I just I just know from 20 years in real estate property.
Boundaries and whatnot, that's it gets really sticky after the fact.
It would have been nice to know those boundary lines ahead of time.
If there is if there is some kind of dispute going on, unfortunately, we didn't know that, right?
And again, the letter that the Tammy is referring if that was presented to the planning commission or if any of the resident had a comment and spoken, we would have address that issue.
But even if it happened, again, it's a civil matter.
It is not something that the village, the planned commission or what have you was going to get involved in.
Well, I understand that, but it now that it's a civil matter.
But when if we're making decisions based on you don't have all the information in front of you, I think that's problematic.
That's what I'm saying.
Are you aware of how many accidents are on that road?
Is any of that information when we're when we're approving this and and that there was no, you know, there's boundary disputes and things like it just feels like it's going to be problematic.
If we just go ahead and blindly approve this knowing that there's all these other issues, that's all I'm concerned about.
Well, I, you know, with your mission, Mr. President, I think I will not use the word blindly approved there because it's been discussed at the planning commission level.
And this is a issue which has been at the planning commission and the board for almost like any year now.
Many of the residents, many of the residents, maybe if not all of them.
A most majority of the residents have come to the planning commission and to the village board over the last, I mean, correct me if I'm wrong, but it's been on the agenda for good nine months to one year.
They have come and spoken. They have expressed their opinion.
And based on those feedback from the residents, the developer has changed the layout.
They were, when this project started, they had a multi units and now is most of them are all a single family home.
So we, we listened to the residents concerned.
They were concerned about the property values and everything.
So it has gone from multi units, condos and everything to single family home.
We have gone through all that.
So every time the residents came, whether to the planning commission or to the village board, the planning commission and the village board and the developer, they took into account.
They kept on making a modification until the preliminary plot was approved.
And since their preliminary plot, they were still a couple of the changes are concerned that they address.
So I would not use the word blindly approved now.
No, the question here, here we are. If the new concerns come to our attention, you know, you know, why this ladder, which is a civil case, no, this is something new.
So being something new, we cannot go back to that.
All the process that we have, the follow for last one year or so forth.
We did the due diligence and concern about address and they were included.
And at some point in time, if somebody brings up new information, yes, we have to be concerned about that.
But at the same time, like Tammy said, I'm not to show, you know, the, you know, where the legal authority is, you know, I'm speaking because I'm on the planning commission.
I'm not sure where the line is that the responsibility of this board versus a civil matter.
Well, our job is to approve what's in front of us as approved by the plan commission.
I'm sorry, I can't take any more comments from you. I closed public comment. This is board discussion at this point.
And I don't even have a motion yet.
The motion for the approval.
Mr. President, I make a motion to approve the identical center agenda as presented.
Second.
So I hear a motion and a second. All in favor signify by saying aye.
Mr. President.
Yes, sir.
Before we have, I do want to add a comment to item number five on the center agenda.
It's just again for the clarification, which is a Kingston home.
Again, I just want to add that the planning commission discuss that item in detail.
And as the right of say, the recommendation is to approve their item subject to the condition that the condominium records.
That the condominium records that temporary access easement along the 18 for wide connection to the Emerson road.
That was the recommendation from the planning commission. And I'm glad that I'm glad to see that that's part of the approved process because
that was a concern again from the residents. The residents came and they were not.
And they expressed some concern about the construction, you know, where the construction trust will come.
So that's what we put that in the recommendation and just want to highlight for the public out there that that has been included.
Okay.
So again, we still have a motion and a second on the center agenda.
Call the vote for that. All in favor say aye.
Aye.
Opposed.
So that matter passes.
And move on from there.
So we got one last motion.
Motion to adjourn.
Second.
So I hear a motion and a second. All in favor signify by saying aye.
Aye.
Opposed.
We stand adjourned.
All in favor say aye.
Aye.