By LeAnn R. Ralph
BOYCEVILLE — According to the latest audit, Boyceville’s Tax Incremental District No. 2 has a negative balance of $2.5 million.
The Boyceville Village Board learned about the TID’s negative balance at Monday night’s meeting when Jonathan Sherwood of Clifton Larson Allen presented the village’s financial report for 2014.
A Tax Increment District uses future gains in taxes to pay for current improvements in the district. The improvements in the district are expected to generate more in property taxes, and the increases in property taxes from the improvements are called a tax increment. TIDs are usually set up to cover a time period of 20 years.
TID No. 2 is surviving and is being financed by Boyceville’s general fund, but it is not generating the increment, Sherwood said.
TID No. 2 will close out in 2019, and the $2.5 million is going to have to come from somewhere, he said.
Right now, there is money set aside in the general fund that is covering the loss, Sherwood said.
Boyceville’s general fund had an ending balance of $3.47 million for 2014, of which $2.7 million was “nonspendable,” and $317,446 was committed, according to the financial report.
On a brighter note, TID No. 3 is generating a tax increment, although TID No. 3 had a negative balance of $39,357 for 2014, Sherwood said.
But because TID No. 3 is generating a tax increment, the negative balance will eventually turn into a positive balance, he said.
Boyceville’s unassigned fund balance for 2014 was $406,496, Sherwood said.
According to the village’s policy, the unassigned fund balance should be 20 percent of the actual expenditures, he said.
The $406,496 in unassigned fund balance works out to be 36 percent of the actual expenditures, meaning that Boyceville’ unassigned fund balance is in excellent shape, Sherwood said.
Boyceville is in a good position for debt capacity, Sherwood said.
In 2018, the village will pay off three debts. Currently the remaining debt payment to cover all three is $67,875, he said.
Boyceville has been fiscally conservative in taking on new debt, Sherwood noted.
In the years 2015 to 2019, Boyceville will have annual debt payment of around $27,700, according to the financial report. From 2020-2029, the village’s annual debt payment will be $128,000. In 2030-2031, the payment will be $51,217.
In 2014, Boyceville had total outstanding debt of $703,614. The $248,000 state trust fund loan from 2013 for the new ambulance station is included in the total outstanding debt, Sherwood said.
While the $248,000 is technically “on the village’s books,” the ambulance district will be paying Boyceville back for that amount, he said.
Water and Sewer
Boyceville’s water utility ended 2014 with a net position of $1.394 million, representing an increase of $11,102.
The sewer utility had total revenue decrease, due to Ohly Americas spending $394,000 for the sewer utility in 2013 and spending $305,000 in 2014, Sherwood said.
The sewer utility’s fund balance of $2.057 million at the end of 2014 represented an increase of $42,367, he said.
The village may want to review the sewer and water rates and then consider a rate increase, Sherwood said.
The Boyceville Village Board voted unanimously to accept the 2014 financial report.
In other business, the Boyceville Village Board:
• Approved a bartender’s operator license for Patricia Lobak.
• Approved a contract with Hydro Corporation to do cross connection surveys at a cost of $15,979.
• Approved a temporary Class “B” picnic license for the Boyceville Fire Fighters’ Association for Thunder In the Pines scheduled May 30 and May 31.
• Approved paying 100 percent of the wages for an injured employee. Worker’s compensation pays 66 percent of the wages. “I think it’s the right thing to do,” said Gilbert Krueger, village president.
• Learned that building permits had been issued to DeeAyne Hegeman, Winter Street, for plumbing and electric; Deborah Grotjahn, Tiffany Street, for roofing; Bryan Schafer, Railroad Avenue, for a storage building.