Village given solid financial rating

The Village of Saukville’s financial situation is in good shape entering this budget season, officials were told last week.

The village enjoys a “high-quality” Aa3 bond rating, a “superior” cash balance and a “very healthy” overall financial position, Greg Johnson, vice president of Ehlers Inc. financial advisers, told members of the village Finance Committee and other trustees and staff.

Credit challenges include a small tax base compared to similarly rated entities and the village’s debt burden is somewhat elevated but still manageable, Johnson said.

The presentation was part of an annual exercise to update officials on the village Financial Management Plan, a road map, of sorts, to guide them through the upcoming budget process.

The presentation by Johnson showed the “all-in” scenario, of following the plan in detail without variance.

The village’s “Financial Management Plan” was first developed in 2016.

Among the details shared by Johnson:

The village’s fund balance is at about $1.5 million, or 39% of annual spending.

Johnson’s figures also showed the village’s total equalized value, including tax increment finance districts, has risen to more than $440 million, up from a low of $395 million in 2013 during the recession.

Current existing debt totals more than $1.76 million, with about $1.1 million of that put on the tax levy.

“Our debt situation is very manageable and we have an incredible bond rating for our size,” Village President Barb Dickmann said.

With water and street projects, as well as fire equipment replacement, debt could grow to almost $1.38 million by 2023.

That’s according to the “all-in scenario” presented by Johnson, Village Administrator Dawn Wagner emphasized.

“The FMP (financial management plan) is reviewed a few times a year, and is always subject to changes based on the evolving needs of the village,” she said in an email.   “Just like any plan, FMP is dynamic; it evolves and is subject to ongoing review/change.”

Dickmann said the financial plan helps village officials incorporate capital improvement and equipment purchases into their annual budget without committing to them.

“It helps us see how we can purchase those items without grossly affecting our tax rate, so there aren’t spikes, that there’s a gentle flow to it,”  she said. “It’s not to say we’re going to buy everything in (the capital plan). We’re very careful in using our villagers’ money.”

Dickmann said it’s too early to talk specifics regarding the 2019 budget.

The process kicks off in early October with board members touring the village to review infrastructure needs and visit with department heads, Dickmann said.

That will be followed by a series of workshops where priorities are set and finally a draft budget is presented to the Village Board for consideration and passage.