Delavan to reimburse Lake Lawn $13,000

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Wednesday, June 30, 2010
— This summer and last, Lake Lawn resort paid tens of thousands of dollars to the city of Delavan to keep its liquor license.

Next month, a little of that money could flow the other way.

The city’s finance committee Tuesday night voted 2-0 to recommend that the city pay about $13,000 plus interest to the resort.

That would reimburse the resort for possible overpayment of cost-recovery bills accrued in 2008 and 2009. Lake Lawn last June paid more than $80,000 in cost-recovery bills when the city threatened nonrenewal of the resort’s liquor license.

The bills are part of Lake Lawn’s developers contract with the city of Delavan. The contract requires the resort pay some professional fees such as engineering or attorney fees related to Lake Lawn.

Lake Lawn contested some of the invoices last summer but paid anyway. Former finance committee Chairman Ron Siedelmann led a group of city officials to meet with Lake Lawn and study the contested invoices.

Siedelmann recommended the resort be paid $13,000 to make up for billing inaccuracies.

The council last summer talked about the matter at length but never took action.

Current finance committee Chairman Bruce DeWitt put the item back on an agenda, he said.

From the audience, council member Dave Kilkenny said the professionals who generated the bills should be included in the conversation about the contested bills.

But DeWitt said the council in 2009 appointed Siedelmann to work through the confusion.

“I think there was some effort to sort the bills out,” De-Witt said. “If we owe Lake Lawn the money, we should pay Lake Lawn back the money.”

Earlier this month, the council voted to deny Lake Lawn its liquor license because the resort owed about $20,000 from invoices starting in July 2009. The money was paid prior to a hearing, and the resort again will keep its license.

Once the council works through the issue with last year’s bills, the city could meet with Lake Lawn and double check the second batch of bills, DeWitt said.

Finance committee member Gary Stebnitz was absent Tuesday night.

In other news:

The committee Tuesday directed Administrator Joe Salitros to talk to union representatives about covering a projected gap in the city’s 2011 budget.

Projected utility and wage increases would leave a $204,000 hole in the city’s budget, DeWitt said.

The goal is to find ways to cut expenses without laying off employees, possibly by not increasing wages, DeWitt said.

Last updated: 1:58 pm Thursday, December 13, 2012

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