Saukville finance committee authorizes PSC filing after Ehlers recommends 14.49% water-rate increase for 2027

The Saukville Finance Committee voted May 5 to authorize municipal advisor Ehlers to file a Conventional Rate Case (CRC) application with the Wisconsin Public Service Commission seeking a proposed 14.49% water-rate increase in 2027 to help fund ongoing operations and the Eastside Water Loop project, committee minutes show.

Kayla Thorpe of Ehlers presented the Phase 2 Water Rate Study and the updated long-range cash-flow analysis for the sewer utility. Thorpe said the last Conventional Rate Case was completed March 31, 2016, which resulted in a 25% increase, and noted a Simplified Rate Case for 3% took effect Jan. 1, 2026. Thorpe said the PSC-based utility calculations show a recommended 14.49% increase in 2027 under the utility basis to meet projected revenue requirements and fund the Eastside Water Loop.

The presentation included 10-year budget and debt projections showing how revenue, debt service and capital projects interact under the proposed plan. Slides showed modeled customer impacts for an average four-person household using 12,000 gallons per quarter and a timeline for the PSC process that Ehlers summarized as audit (2–3 months), public hearing (4–5 months) and implementation (about six months), subject to PSC timing.

Thorpe also flagged project uncertainties that could affect the capital program and future rates, including a delay of the Eastside Water Loop project and possible future PFAS-related mandates that may change the feasibility or scope of a proposed iron filter for Well No. 5. On the sewer side, Ehlers’ slides described strong reserves and coverage ratios but laid out an extensive capital-improvement program — including a proposed 2028 biosolids handling facility — and showed proposed debt schedules and funding sources (cash, revenue debt, and limited G.O. debt illustrations).

Ehlers noted the biosolids facility as currently structured on market-rate revenue bonds but said the project could qualify for a Clean Water Fund loan, which might lower interest costs and reduce rate pressure if secured.

Committee action and other votes: the committee approved the filing authorization for the CRC application (motion by Jim Nowlen, second by Wendy Smith; motion carried). The committee also approved April 2026 claims totaling $487,715.60 (motion by Bill Rudolph, second by Jim Nowlen; motion carried). The meeting adjourned after a motion by Jim Nowlen, seconded by Pamela Duckart; the motion carried at 6:32 p.m.

Next steps: Ehlers and village staff will file the CRC application with the PSC and, if the PSC accepts the filing, will provide suggested customer-notification language and proceed through the PSC audit and hearing process. The presentation materials noted Ehlers will update the capital-improvement plan in the 2026 financial management plan as new information — including any PFAS requirements — becomes available.