The Village of Sherwood approved a near‑term sewer‑rate increase and a switch from quarterly to monthly water and sewer billing to prepare for a multi‑year upgrade of the village wastewater treatment facility.
Across 2023 village staff, Cedar Corporation engineers and municipal finance adviser Ehlers worked through alternatives for tertiary filtration, construction phasing and financing. The village applied to the Wisconsin DNR Clean Water Fund for the WWTF project, and in June the board set a public hearing and then approved a 48.6% increase in the sewer rate and moved utility billing to monthly beginning July 1, 2023. The board voted to begin with an initial step to raise revenue now and to refine future steps after DNR and financing feedback.
Why it matters: The DNR has required the village to meet increasingly strict phosphorus and total suspended solids limits; Cedar Corp. presented filtration options and cost estimates, and Ehlers advised the board on short‑ and long‑term cash‑flow and bridge‑loan options. The village’s capital plan assumes most construction costs will fall across 2024–2025, and the utility fund must carry loan payments and operations without general‑fund cross‑subsidy.
What officials said and did: Cedar engineers told the board two tertiary filter systems under study meet DNR limits; Cedar estimated roughly $9.2M earlier in the year for phase‑one work, with additional phases later. At the June 26 meeting Clerk‑Treasurer Nick Halbach and Engineer Thad Majkowski presented figures that drove the 48.6% increase (from an average quarterly bill of $99.29 to an adjusted average of $147.54). Trustee Salo moved to approve the rate increase after a public hearing; the motion carried. The board also approved moving the utility billing cycle to monthly to even out customer bills and better match cash‑flow with debt service schedules.
Financial and implementation details: Ehlers was engaged in February to prepare a 10‑year cash‑flow analysis and advise on bridge loan timing. Cedar provided design work and a Clean Water Fund facility plan submitted to DNR; DNR plan review began in late 2023 and will control the final funding timetable. The board created a WWTF subcommittee (utility operator, at least one trustee, and Cedar’s design lead) to vet design and change orders between full board meetings.
Outlook and next steps: The DNR review will determine loan timing and potential grant offsets; the board signaled it will use the Ehlers cash‑flow scenarios and DNR guidance to set any future rate increases. The board also approved phasing and design authorization work to expedite bidding for spring 2024 should approvals arrive on schedule.