Wis. Stats., to condition the issuance of a retail alcohol beverage license on the applicant or licensee paying outstanding local taxes, assessments and forfeitures. The Tavern League decision makes it clear, however, that in order to satisfy equal protection concerns, any such ordinance must apply to all licenses issued by the municipality, not just alcohol beverage licenses. Also, the court of appeals' decision indicates that a municipality must follow the minimum due process procedures set forth in sec. Wis. Stats., before suspending or non-renewing an alcohol beverage license for nonpayment of taxes or other local charges. While the Tavern League case dealt with a city instead of a village and an ordinance seeking payment of taxes instead of utility charges, I believe the court's reasoning and conclusions support your village's ability to proceed as it proposes.
Villages have the same broad general police powers as cities.
I don't see any significant difference between an ordinance conditioning an alcohol beverage license on payment of local taxes and an ordinance conditioning such a license on payment of municipal utility charges.