Kellnersville utility update: PSC approves 3% water-rate increase; catch-basin replacement estimated at $20,000

Village utility officials told the board on Jan. 12 that the Public Service Commission approved a 3% water-rate increase effective Jan. 1, 2026 and distributed new rate sheets. The board reviewed several utility-finance items including a $20,000 replacement estimate for the catch basin at the intersection of CTH K and CTH T and a small IRS penalty related to payroll-tax deposit rules.

The report by Utility Operator Todd Lensmeyer said Essential Sewer and Water quoted $20,000 to replace the catch basin if done this year. Lensmeyer reported he consulted Greg Grotegut at Manitowoc County, who advised completing the work in spring rather than waiting for county CTH T work scheduled for 2027, and he warned that waiting could risk the basin caving in. The board deferred further discussion on the catch basin to the February meeting.

Clerk Heather Dachelet told the board the utility received a $276.12 penalty from the IRS because utility payroll taxes for third-quarter 2025 exceeded $2,500; that triggers a requirement to remit payroll taxes electronically and monthly going forward. The board recorded a $20,000 transfer from checking to the money-market account and approved January utility payables of $5,636.73 on a motion by Trustee Jason Kolb, seconded by Trustee Dustin Huletz.

The report also noted the board reviewed a fourth-quarter 2025 utility budget vs. actual and discussed a possible Rural Water website; no further action was taken on the website proposal at the meeting.