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THE CITY REBORN FROM THE ASHES OF AMERICA'S MOST DISASTROUS FOREST FIRE
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Peshtigo Gets Good Audit Report, Eligible For $50,000 USDA Grant

Issue Date: June 6, 2019

Mayor Cathi Malke advised Peshtigo City Council at its meeting on Tuesday, June 4 that she had some good news/bad news to share. For the past two years the city had not qualified for any USDA community grants because the city's average income was too high. She checked again this year, and learned that the city's per capita income has dropped enough that they are eligible for a $50,000 grant.

She is working with city auditors, CLA, LLP, the USDA and City Clerk/Treasurer Tammy Kasal on meeting grant application requirements, including getting the needed information and filling out the forms and submitting them on time. She has learned that the grant requests treat each city department as its own entity, so the equipment to be purchased or to count toward the city's required spending match must be for a specific department, not the city as a whole.

Malke said they will submit a grant request for $50,000 to be used this year for purchase of some needed public works equipment - namely a new garbage truck, a chipper, a router to aid in filling road pavement cracks, and possibly to help purchase trash bins if they decided to buy a self-loading type garbage truck. The city's existing garbage truck is 26 years old, and replacement has long been on the capital improvement list. She said only having an excellent mechanic and other conscientious employees has kept it running so long.

She said to qualify for the full $50,000 the city will need to spend $330,000 on capital improvements, "which should be very easy to do."

Vote in favor of applying for the grant was unanimous, with all members of the council present.

Malke plans to apply for funds in the next two years to meet help make capital improvement purchases for other city departments for the fire department in 2020 because they plan to buy a new truck then anyway, so meeting the needed spending level will be easy, and for police equipment the following year.

The grants, Malke commented, add a nice amount of money to help pay for things the city needs to buy in any case.

In connection with this year's application for the grant, the Council's Streets and Drainage Committee will meet at 4 p.m. on Thursday, June 13 to discuss which type of garbage truck they should buy - a traditional rear-end loader like the one in use now, or the kind with arms in front that pick up specially designed rolling trash bins and dump them into the truck.

Public Works Director Cowell explained after the meeting that the advantage of the automated arm-type truck is that only a driver is needed, which will free up about 40 man-hours each week during which his Public Works personnel can be getting other work done. A disadvantage is that residents may be required to buy the special rolling bins that the truck requires.

Malke expressed hope there will be a large enough turnout at the June 13 meeting to give them a feel of which truck the residents would like them to choose. Cowell said he will try to get the bin distributor to provide a sample for people to see prior to the committee meeting.

The June 4 Council meeting had started with the 2018 audit report by Scott Sternhagen of CLA, which has purchased Schenck, SC, the city's former financial consultants.

Sternhagen gave the city a clean audit report. There were just two "findings," neither of them unusual for a city the size of Peshtigo. Overall, he expressed appreciation for the assistance they received from the entire city hall staff.

"Overall, your finances are in fairly good shape," Sternhagen told the Council. The city had a cash balance of $2,720,000 at the end of 2018, down $136,000 from the year before, mainly because of some large capital outlay expenditures. He said a problem is that most of the city's income is from state shared revenue that arrives in November, so they need a large reserve fund to carry them over without need to borrow before the shared revenue payment arrives.

He said some things will change for next year because the Revolving Loan Fund is closing down. The TIF is closed so there was a big transfer coming in.

The audit includes the water and sewer financial reports. Revenues for the water utility were $840,000, up from $818,000 the previous year, showing a positive income of $180,000, part of which went to pay interest and principal on the utility's debt, leaving about a $20,000 return on investment. However he cautioned the TIF had been paying a lot of the debt, "something to be aware of when the TIF funds go away."

Since a rate increase last year the Sewer utility showed a positive flow of $89,000, "and that's an improvement."

Overall, Sternhagen commented, "it's good that you're now generating enough cash to fund your financial needs as you go." He added this particularly good because he has been told there are some major sewer repairs coming up.

Alderman Archer Leupp asked if there were any major issues for water and sewer. While the city's general fund is debt free, there is some debt in water and sewer funds. He noted that with Wisconsin levy limits you can borrow for major purchases, but you can't raise taxes to pay for them.

Sternhagen is also working with Malke on the USDA grant application. On his advice Council adopted a resolution putting $1,351,000, roughly half of the total General Fund balance, into a designated Committed Fund Balance For Working Capital account, and leaving the remaining $1,352,000 as Unassigned General Fund.

He said the current Unassigned General Fund balance of $2,720.000 makes it appear as though the city has too much money to qualify for the USDA/Rural Development grant.

Malke thanked the city's office staff for all their work on the audit and the grant application. "They've done an awesome job!" she declared.

During time for public comment, Walter Majkrzak, of Stephenson, Mich. strongly asked the city and/or the Water and Sewer Committee, to make an adjustment to the $3,254.18 bill his son Justin and his new wife had received for three months of water and sewer service after they moved into their new home in Peshtigo. He said for the water they actually used, that three month bill should have been about $230.

He said the couple were recently married and the house in Peshtigo is their first home. It wasn't until they got that huge water bill that they realized something was wrong and discovered the broken water pipe leaking into the crawl space under their home.

Majkrzak said he is a contractor who is very familiar with these types of situations, and serves on the Stephenson, Mich. Utility Board. He has also been on their City Council. He noted Peshtigo only sends utility bills every three months, and this tremendously high bill was not reported to them at once. It leaked for another 18 days after the meters were read and before the bill was received. He asked in situations like this, how anyone is supposed to know they have a leak. It wasn't something they could hear, like a toilet running, or see, without going under the house. Stephenson bills monthly, and keeps costs down by having meters that are read remotely, Majkrzak said.

Malke told the Majkrzaks that there was nothing the Council could do that evening, but they would send it back to the Water and Sewer Board for consideration at their meeting on Monday, June 11.

Majkrzak also suggested the city should hand out a welcoming packet for new residents that contains information about city services. For example, he said his son did not know that he can put an outside meter at his home and not have to pay sewer fees for water he uses on his lawn, garden, kiddie pools, etc.

Malke said Peshtigo Chamber of Commerce has been considering handing out welcome packets.

At the request of Municipal Court Judge Cindy Sutek and Court Clerk Nikkee Dionne, Council agreed to change City Municipal Court from evening hours to daytime hours for the safety of court personnel.

Sutek said most courts hear cases during the day. Being in the Municipal Building at night they are alone and unprotected if the officer on duty is called out.

"We've often had rowdy, angry people in court," Dionne said. She added she often needs to ask police for information on driver's licenses, etc. and that information is not easy to get at night when she and the judge are the only ones in the building.

Currently court for adults starts at 7 p.m. and is preceded by juvenile cases. Council agreed to the change Sutek requested, with adult case hearings to start at about noon. Court is held in the Council chambers, which will need to be cleared by 10 a.m. on court days, which will continue to be on the third Wednesday of each month. Sutek said she will put an ad in the paper to make people aware of the change. Malke said the city will also post signs outside with the new court hours.

Cowell reported his department has finished spring street sweeping and got the flags up for Memorial Day. Aubin Street is being paved and the project is going well, Cowell said. Paving has to be completed by June 30 for the city to be eligible for a grant to help pay for it.

Water line flushing will continue on Thursday nights and Friday mornings through June, Cowell said.

He said the Council should be aware that his Public Works budget for overtime is already overspent by $166 this year, and they can expect snow removal hours again in November and December, so he expects to be over by $4,000 or $5,000 by the end of the year.

"What we do isn't glamorous," Cowell told the Council, "but what we do is the bread and butter of this community. We keep your streets clean and snow cleared away!"

"I don't think we're over killing anything and I don't think anybody wants a different level of service," he added.

A street closure request from Rich Crevier for a neighborhood block party on June 22 was withdrawn. Council was told Crevier plans not to use the street, but to have entertainment at driveways in the neighborhood instead.

Street closure requests were approved for the Peshtigo Historical Day parade on Sept. 28 as requested by Kris Karpowicz, and from Peshtigo River Pub for the Rumble For Hunger on Aug. 17, with an amended end time of 11 p.m.

Class B Fermented Malt Beverage and Intoxicating Liquor licenses were approved for seven business places; Class A licenses for six business places, and a Class B license for one, along with 43 bartender license renewals and three new bartender licenses.

Clerk/Treasurer Tammy Kasal explained the city cannot issue temporary liquor licenses for special outdoor events, so the businesses requesting them had to add licensing specific outdoor areas on their premises for a limited number of special outdoor events each year, subject to the city's beer garden rules. That had been done for The Office and the Brown's Corner parking lot and grassy area west of the building for up to five times a year. River Pub already had portions of its back yard licensed for outdoor use, so that was already covered in regard to the Aug. 17 Rumble For Hunger Event.

In other action, Council approved:

*A gas utility easement for Wisconsin Public Service to run a line parallel to the city garage property to replace the gas line that serves the city garage and the lift station;

*A request from Fire Chief Steve Anderson to hire Michael Ehlert as a firefighter;

*Adding a fee of $60 for a Zoning/Use Permit to the fee schedule;

*Sale of the dump truck to the highest bidder, NKS Tire & Service, Inc., for $4,250, and

*Transfer of $3,100 from the General Fund to the summer recreation program to allow Parks and Recreation Director David Zahn to hire Linda Campbell as a part-time activities director to work on adult programming.

As the meeting came to a close, Mayor Malke congratulated the Peshtigo High School Boys Track Team for their fine showing in state competition. Mitchell Van Vooren placed first in the 110 meter hurdles, Max Rauch placed first in Pole Vault, and the team placed Third overall.

the city's former financial consultants.

Sternhagen gave the city a clean audit report. There were just two "findings," neither of them unusual for a city the size of Peshtigo. Overall, he expressed appreciation for the assistance they received from the entire city hall staff.

"Overall, your finances are in fairly good shape," Sternhagen told the Council. The city had a cash balance of $2,720,000 at the end of 2018, down $136,000 from the year before, mainly because of some large capital outlay expenditures. He said a problem is that most of the city's income is from state shared revenue that arrives in November, so they need a large reserve fund to carry them over without need to borrow before the shared revenue payment arrives.

He said some things will change for next year because the Revolving Loan Fund is closing down. The TIF is closed so there was a big transfer coming in.

The audit includes the water and sewer financial reports. Revenues for the water utility were $840,000, up from $818,000 the previous year, showing a positive income of $180,000, part of which went to pay interest and principal on the utility's debt, leaving about a $20,000 return on investment. However he cautioned the TIF had been paying a lot of the debt, "something to be aware of when the TIF funds go away."

Since a rate increase last year the Sewer utility showed a positive flow of $89,000, "and that's an improvement."

Overall, Sternhagen commented, "it's good that you're now generating enough cash to fund your financial needs as you go." He added this particularly good because he has been told there are some major sewer repairs coming up.

Alderman Archer Leupp asked if there were any major issues for water and sewer. While the city's general fund is debt free, there is some debt in water and sewer funds. He noted that with Wisconsin levy limits you can borrow for major purchases, but you can't raise taxes to pay for them.

Sternhagen is also working with Malke on the USDA grant application. On his advice Council adopted a resolution putting $1,351,000, roughly half of the total General Fund balance, into a designated Committed Fund Balance For Working Capital account, and leaving the remaining $1,352,000 as Unassigned General Fund.

He said the current Unassigned General Fund balance of $2,720.000 makes it appear as though the city has too much money to qualify for the USDA/Rural Development grant.

Malke thanked the city's office staff for all their work on the audit and the grant application. "They've done an awesome job!" she declared.

During time for public comment, Walter Majkrzak, of Stephenson, Mich. strongly asked the city and/or the Water and Sewer Committee, to make an adjustment to the $3,254.18 bill his son Justin and his new wife had received for three months of water and sewer service after they moved into their new home in Peshtigo. He said for the water they actually used, that three month bill should have been about $230.

He said the couple were recently married and the house in Peshtigo is their first home. It wasn't until they got that huge water bill that they realized something was wrong and discovered the broken water pipe leaking into the crawl space under their home.

Majkrzak said he is a contractor who is very familiar with these types of situations, and serves on the Stephenson, Mich. Utility Board. He has also been on their City Council. He noted Peshtigo only sends utility bills every three months, and this tremendously high bill was not reported to them at once. It leaked for another 18 days after the meters were read and before the bill was received. He asked in situations like this, how anyone is supposed to know they have a leak. It wasn't something they could hear, like a toilet running, or see, without going under the house. Stephenson bills monthly, and keeps costs down by having meters that are read remotely, Majkrzak said.

Malke told the Majkrzaks that there was nothing the Council could do that evening, but they would send it back to the Water and Sewer Board for consideration at their meeting on Monday, June 11.

Majkrzak also suggested the city should hand out a welcoming packet for new residents that contains information about city services. For example, he said his son did not know that he can put an outside meter at his home and not have to pay sewer fees for water he uses on his lawn, garden, kiddie pools, etc.

Malke said Peshtigo Chamber of Commerce has been considering handing out welcome packets.

At the request of Municipal Court Judge Cindy Sutek and Court Clerk Nikkee Dionne, Council agreed to change City Municipal Court from evening hours to daytime hours for the safety of court personnel.

Sutek said most courts hear cases during the day. Being in the Municipal Building at night they are alone and unprotected if the officer on duty is called out.

"We've often had rowdy, angry people in court," Dionne said. She added she often needs to ask police for information on driver's licenses, etc. and that information is not easy to get at night when she and the judge are the only ones in the building.

Currently court for adults starts at 7 p.m. and is preceded by juvenile cases. Council agreed to the change Sutek requested, with adult case hearings to start at about noon. Court is held in the Council chambers, which will need to be cleared by 10 a.m. on court days, which will continue to be on the third Wednesday of each month. Sutek said she will put an ad in the paper to make people aware of the change. Malke said the city will also post signs outside with the new court hours.

Cowell reported his department has finished spring street sweeping and got the flags up for Memorial Day. Aubin Street is being paved and the project is going well, Cowell said. Paving has to be completed by June 30 for the city to be eligible for a grant to help pay for it.

Water line flushing will continue on Thursday nights and Friday mornings through June, Cowell said.

He said the Council should be aware that his Public Works budget for overtime is already overspent by $166 this year, and they can expect snow removal hours again in November and December, so he expects to be over by $4,000 or $5,000 by the end of the year.

"What we do isn't glamorous," Cowell told the Council, "but what we do is the bread and butter of this community. We keep your streets clean and snow cleared away!"

"I don't think we're over killing anything and I don't think anybody wants a different level of service," he added.

A street closure request from Rich Crevier for a neighborhood block party on June 22 was withdrawn. Council was told Crevier plans not to use the street, but to have entertainment at driveways in the neighborhood instead.

Street closure requests were approved for the Peshtigo Historical Day parade on Sept. 28 as requested by Kris Karpowicz, and from Peshtigo River Pub for the Rumble For Hunger on Aug. 17, with an amended end time of 11 p.m.

Class B Fermented Malt Beverage and Intoxicating Liquor licenses were approved for seven business places; Class A licenses for six business places, and a Class B license for one, along with 43 bartender license renewals and three new bartender licenses.

Clerk/Treasurer Tammy Kasal explained the city cannot issue temporary liquor licenses for special outdoor events, so the businesses requesting them had to add licensing specific outdoor areas on their premises for a limited number of special outdoor events each year, subject to the city's beer garden rules. That had been done for The Office and the Brown's Corner parking lot and grassy area west of the building for up to five times a year. River Pub already had portions of its back yard licensed for outdoor use, so that was already covered in regard to the Aug. 17 Rumble For Hunger Event.

In other action, Council approved:

*A gas utility easement for Wisconsin Public Service to run a line parallel to the city garage property to replace the gas line that serves the city garage and the lift station;

*A request from Fire Chief Steve Anderson to hire Michael Ehlert as a firefighter;

*Adding a fee of $60 for a Zoning/Use Permit to the fee schedule;

*Sale of the dump truck to the highest bidder, NKS Tire & Service, Inc., for $4,250, and

*Transfer of $3,100 from the General Fund to the summer recreation program to allow Parks and Recreation Director David Zahn to hire Linda Campbell as a part-time activities director to work on adult programming.

As the meeting came to a close, Mayor Malke congratulated the Peshtigo High School Boys Track Team for their fine showing in state competition. Mitchell Van Vooren placed first in the 110 meter hurdles, Max Rauch placed first in Pole Vault, and the team placed Third overall.


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Peshtigo Times
841 Maple St
PO Box 187
Peshtigo, WI 54157
Phone: 715-582-4541
Email:
News@
PeshtigoTimes.com

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Fax: 715-582-4662
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