TOWN OF OCONOMOWOC

Board of Supervisors – Special Meeting – Boundary Agreements

June 4, 2008

Call to Order/Pledge of Allegiance:

Chairman Hultquist called the meeting to order at 5:00 p.m. with the Pledge of Allegiance. Present were Chairman Hultquist, Supervisors John Roelandts, Janis Husak, Brian Wiemer, and John Koepke. Also present were Administrator/Planner Jeff Herrmann, and Clerk/Treasurer Terry Leaman.

There was one person in attendance.

1. Discussion on Boundary Agreements with City of Oconomowoc, Village of Lac La Belle, and Village of Oconomowoc Lake.

Village of Oconomowoc Lake

On Tuesday April 8, 2008, Chairman Hultquist and Jeff Herrmann met with the Village of Oconomowoc Lake Administrator Donald Wiemer and Village President Richard Kneiser. The Village indicated that they did not want to annex any property from the Town of Oconomowoc. However, the Village felt that a new boundary between the Town and Village needed to be established. The Village suggested that S.T.H. 16 should be considered the northerly limit of the Village of Oconomowoc Lake. This would mean that Kiltie, Lakeland and a small vacant parcel would become part of the Village. The Village would be willing to discuss the economic impact to the Town, should the Town be interested in this boundary. The Village was not interested in relinquishing their rights to the boat launch or the two (2) vacant parcels that they own north of S.T.H. 16. The Town has not discussed if or what the Town would be willing to give up and at what cost. No other issues were presented by the Village.

Supervisor Koepke: The Town owns the dam but the Village owns the boat launch. This is the only way they can control the usage on Oconomowoc Lake.

Supervisor Roelandts: The Town needs to solidify the boundary where it is today.

Supervisor Wiemer indicated that the Village patrols the area now.

Administrator Herrmann added that HWY 16 is currently not the dividing line. If the Town would negotiate the Kiltie and Lakeland the Town would lose about $1,200.00 in personal property taxes and $2,500.00 in property taxes.

Supervisor Koepke suggested some type of revenue sharing.

Administrator Herrmann indicated that there are two options available:

1) Revenue stream over a certain number of years.

2) One lump sum payment up front.

Supervisor Wiemer mentioned that the Village wants to control what goes on the corner of the frontage road and HWY P.

Supervisor Husak mentioned that if HWY 16 is the dividing line then a negotiation needs to meet the best interests of all parties.

Supervisor Koepke talked about his water turbine discussion with the Okauchee dam. There may be some potential for revenue with the dam.

Supervisor Roelandts suggested the south end of the HWY 16 right of way should be the southern boundary.

Village of Lac La Belle

On Friday March 7, 2008, Chairman Hultquist and Jeff Herrmann met with the Village of Lac La Belle president George Stumpf. Mr. Stumpf was not interested in acquiring lands from the Town of Oconomowoc, but was more concerned with the water quality in Lac La Belle. Mr. Stumpf discussed four (4) main concerns that he would like resolution to prior to entering into a permanent border agreement. The following issues were discussed:

a. Property Taxes: The first issue dealt with trying to keep the Town and the Village on the same page when it comes to property taxes. The Town of Oconomowoc completes a reevaluation every 5 – 10 years, which gives non-lakefront owners an unequal share of property taxes in the years after the reevaluation is completed. This is because the State of Wisconsin adjusts the equalized assessed value of the Town of Oconomowoc as a whole, which puts a higher tax burden on the non-lakefront property owners until a reassessment is completed. Since a high percentage of the residents of the Village of Lac La Belle are lakefront property owners, the Villages equalized assessed valuation goes up proportionally to the actual value of those properties, while the lakefront property values in the Town of Oconomowoc increase slightly, but do not keep up with the actual fair market values. This is evident when someone on the lake sells their home for more than the equalized assessed value stated on their tax bill. Generally, the values of lakefront property have been increasing at a higher rate than the non lakefront property. The Village is requesting that the Town of Oconomowoc reconsider the way they assess properties in the Town and perform a partial evaluation on a yearly basis. This will allow the Town to keep the equalized assessed values consistent with the fair market values and eliminate the need to complete a reevaluation every 5 – 10 years. The costs associated with this type of assessment are more expensive each year, but eliminates the large cost associated with reevaluating the whole town. If the Town decides that this is the best way to go, we will need to meet with Grota Appraisals to discuss the costs associated with this scenario.

b. State Owned Land: The Village of Lac La Belle is concerned about the proposed use/uses of the land owned by the State of Wisconsin, especially those areas north of the village limits and south of the by-pass. The Village would like those areas to be preserved and protected to the greatest extent possible. Development of this land may have severe impacts to the water quality of Lac La Belle. The Village would consider purchasing the property if the Town of Oconomowoc is not interested. However, because the property is located with the Town of Oconomowoc, the Town has the first chance to purchase the property. The Town of Oconomowoc Board should discuss this issue and make an informed decision.

c. Protection of Lac La Belle: The Village of Lac La Belle is very concerned about the water quality in Lac La Belle. Any new stormwater basins, drainage easements, etc. need to be reviewed closely to determine what if any adverse impacts will occur to Lac La Belle.

d. Runyard Farms: Evidently there are concerns regarding farming activities and the close proximity of farm equipment and crop production to the rivers/streams in the area north of Lac La Belle. According to Mr. Stumpf, the Village and/or Town have talked to Runyard Farms about this issue and they were providing a buffer between the river/stream and the area farmed. Unfortunately, over the years the farming activities have crept closer to the river/stream edge. This is a big concern of the Village. The Village has asked if there is anything the Town can do to help minimize the impacts to the lake. The Runyards feel the problem is bigger than just the farming practices. The ditch/creek is extremely cloudy prior to reaching their property. The Town Administrator has agreed to meet with the Runyard family to discuss this situation. The Town and/or Village may need to seek assistance from a qualified individual who can study the watershed north of Lac La Belle.

Supervisor Husak suggested the Town and the Village work together to talk with Grota Appraisals.

Administrator Herrmann indicated that Mark Mikkleson from Yaggy Colby is working on a watershed plan.

City of Oconomowoc

Following a meeting with the Town Chairman, Town Administrator, Mayor of Oconomowoc, Maury Sullivan, and Diane Gard, City administrator, the City wrote a letter to the Town listing their Boundary requirements. The requests contained in the letter were unacceptable to the Town.

Administrator Herrmann sent a letter to Administrator Gard explaining the Town’s position. He and the City Administrator are meeting to discuss the situation. All parties need to meet to discuss what options are available for both communities.

The Town needs sewer REC’s. Possibly the DNR could help if there are failing septic systems.

Administrator Herrmann is looking for advice from the Board as what he should do.

2. Adjourn.

A motion was made by Supervisor Roelandts to adjourn the meeting. The motion was seconded by Supervisor Husak. The motion carried unanimously. The meeting adjourned at 5:40 p.m.

Respectfully submitted,

______________________

Terry A. Leaman

Clerk/Treasurer