Choosing which firm to conduct a merger financial analysis was easy, seeing as there was only one submitted proposal.

Baker Tilly was the only firm to respond to the Cottage Grove Merger Study Committee’s request for proposal and was awarded the job, with a few conditions. Merger Study Committee Co-Chairperson and Village President Diane Wiedenbeck said concerns about the timeline for a final report were what likely kept financial firm Johnson Block from sending a proposal. Bauman & Associates and Reilly Penner & Benton did not respond to the Committee’s RFP.

What the Committee unanimously agreed on was for Baker Tilly to move forward with the first phase of the firm’s proposed three phase analysis, being paid for with the $5,000 given to the group by the Village. The approved motion also said that the September 12, 2011 report delivery deadline needed to be clarified with and accepted by Baker Tilly. Committee Co-chairpersons Wiedenbeck and Kris Hampton were also directed to ask the financial firm to clarify what is included in the Phase 1 project. In question were whether Phase 1 would be a full financial review, including data on debt service agreements and tax increment financing districts. Committee member and Village Trustee Micah Zielke brought this to the group's attention as a concern since language on debt service was listed in Phase 2 of the proposal, and he felt it needed to be part of Phase 1.

“The only thing I worry that we would be missing with Phase 1 is we lack the impact of capital plans and services,” said Zielke. “That’s what I need to understand. Is that factored into the Phase 1.”

According to the proposal, Phase 1 is a tax impact analysis which will assess the effects of a Town-Village consolidation on the tax levy from 2012 to 2016. The proposal goes on to say that an analysis of the tax implications of a merger will be the major focus in the Phase 1 report. The analysis, Baker Tilly said, will point out favorable and unfavorable data informing Committee members of the likely fiscal effects. Presentation of the final report will include two meetings: a joint meeting of Town and Village boards; and a public information meeting for Village and Town residents.

Phases 2 and 3, priced at $8,000 and $15,500, respectively, could be implemented at a later date depending on results from Phase 1. It depends a lot on the number that comes back in Phase 1, said Committee Member and Town Supervisor Mike DuPlayee in an email.

"Depending upon a positive outcome, your guess is as good as mine right now. I would anticipate that the Town
 and Village would like to discuss how we would pay for the next step.  Anything less than, say for an arbritary number, $100...I think that can be considered a positive outcome.

"If there has to be a significant(!!) increase in what the Town would likely pay in taxes then...well that's a lot different!" Then, DuPlayee says, they would have learned a lesson being out the $5,000 that the Village originally fronted for the project.

Phase 2, a budgetary and expenditure analysis of a merger, would gather Town and Village details on existing and future cost projections, operational plans and service levels. Phase 3 would project the most efficient way to consolidate by maximizing use of available personnel, facilities, services and other resources.

An issue aside from the fiscal analysis brought up Hampton concerned effects that a merger might have on tax valuation of Town homes. Wiedenbeck agreed to Hampton’s request of her to ask the Village assessor whether there would be much of a change in Town residential house values compared to the residential values in the Village. “Those (Town) residential properties are compared against others in the Town,” said Hampton. “But throwing it into the Village now I am not sure what your value is. What kind of difference would that make on your assessed value? Would it go up, down, the same…?

The Merger Committee’s next meeting, scheduled for August 22 at 6:30 p.m., will focus on a presentation by Town of Verona Chairman David Combs who will speak about his merger study experience with the city of Verona in 2006 and 2007.