Elk Mound village board hears 2016 audit report

By Cara L. Dempski

ELK MOUND — The Elk Mound trustees and board president learned during their most recent meeting that the village has approximately 10.5 months of operating costs in its general fund.

Baker Tilly auditor Kim Schult appeared before the board April 6 to discuss Elk Mound’s 2016 financial audit, and had some favorable numbers to give the assembled group.

Chief among the numbers, was the $570.734 general fund balance, of which $487,449 is unassigned. The other number that drew attention at the meeting was the overall general obligation debt (money which still needs to be paid), which totaled $810,397 at the end of 2016.

Utilities accounted for $99.844 of the total, while $710,553 was from government fund borrowing. Elk Mound has a general obligation debt capacity of $1,716,390, which means last year’s money owed accounted for 47 percent of the debt capacity.

Schult noted the village’s debt service to non-capital expenditures did increase to 22.1 percent in 2016, which is over the bond agency recommendation of 19.7 percent. Elk Mound’s total debt service last year was $129,383, while $586,603 was used on non-capital expenditures, which are funds spent on payroll, repairs, supplies, and other general operating expenses.

Nearly all of the village’s revenues came from taxes (46 percent) and intergovernmental payments (47 percent). The two subcategories accounted for $593,892 of Elk Mound’s total revenue of $645,080. The village in turn spent $605,751 in 2016, most of which was spread among general government ($211,212), public safety ($107,718), public works ($165,872), and debt service ($103,660).

Outgoing president Tom Gilbert asked Schult if it would make sense to take some of the .7 percent the village is making in a few accounts to pay off debt accounts with higher interest rates.

“That is something you could think about,” Schult said. “I would consult your financial advisor before doing anything like that. Find out if any of your bonds have any early payments.”

Clerk Pat Hahn said there are other loans, though, that extra money earned could be used to pay ahead on.

In addition to presenting numbers, Schult also gave the board some of Baker Tilly’s suggestions for their accounts and management of finances. Among them were separating the duties for payroll, and having more oversight for things like overtime. Gilbert said after the meeting, he is hoping to have a special meeting to discuss the suggestions made and decide how best to implement some new controls.

Terry Stamm presented a report from the plan commission regarding a Certified Survey Map for property southeast of the village. The map needed approval because the property is in within 1.5 miles of the village; it will now need approval from the Town of Springbrook.

In other business, the board:

• Approved hiring Jon Chisholm as a summer maintenance worker.

• Approved the water/sewer department’s consumer confidence report.

• Approved the purchase of a new zero-turn mower and vacuum trailer for an approximate total of $16,500.

• Reviewed the village water reservoir inspection report.