Menomonie approves borrowing $2.8 million for 2025-2026 capital improvement projects
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By LeAnn R. Ralph
MENOMONIE — The Menomonie City Council has approve putting out for bids $2.8 million in general obligation promissory notes to pay for capital improvement projects this year and next year.
The $2.8 million will pay for improvements to city streets, facilities and to purchase equipment, along with the Pine Avenue water utility improvements, stormwater utility improvements and sewer utility improvements, said Sean Lentz of Ehlers, Inc., the municipal financial advisor for the City of Menomonie, at the Menomonie City Council’s March 24 meeting.
According to information Lentz provided to the city council, the Pine Avenue improvements will amount to around $665,000.
The Pine Avenue improvements will not be put on the property tax levy. Revenue from the storm water, water and sewer utilities will pay for that portion of the money used to make the improvements, Lentz said.
The projects can be divided into six categories that can be paid over a five-year period, a, 10-year period or a 20-year period, he said.
The estimated interest rate is 4.5 percent, and the sale of the general obligation promissory notes would occur in a month, Lentz said.
The debt levy mill rate will go from $1.14 per $1,000 of property value to $1.39 per $1,000 of property value, he said, noting that the debt levy can be taken outside of the state-imposed revenue limits.
The City of Menomonie currently has a debt levy of $1.9 million, which would increase to $2.3 million in 2027, Lentz said.
The mill rate estimate is assuming that there will be no growth in the value of property in the city over the next few years, he said.
According to information from Lentz’s pre-sale report, the City of Menomonie has a debt limit of nearly $90 million.
State law sets the debt limit capacity of a municipality at 5 percent of the equalized value.
After the promissory notes are issued, Menomonie’s general obligation debt principal outstanding will be $26,988,000, which is 31 percent of the debt limit, leaving a borrowing capacity of $61,450,000, according to the pre-sale report.
The schedule is for the Menomonie City Council to consider awarding the sale of the general obligation promissory notes at the April 21 meeting, with an estimated closing date of May 6, Lentz said.
Menomonie currently has a Standard and Poor’s rating of A+, and if the rating can be bumped higher, then Menomonie will benefit from a lower interest rate, he said.
The Menomonie City Council unanimously approved starting the bidding process for the sale of $2.8 million in general obligation promissory notes.
Voting in favor of the motion were Jeff Luther (Ward 1); Laura McCullough (Ward 5); Leland Schwebs (Ward 6); Cody Gentz (Ward 7); Mary Solberg (Ward 8); Ryland Erdman (Ward 10); and Randy Sommerfeld (Ward 11).
Absent from the meeting were Matthew Crowe (Ward 2); Eric Sutherland (Ward 3); Gretchen Yonko (Ward 4); and Chad Schlough (Ward 9).
The city council meeting was scheduled to start at 7 p.m. but did not actually start until 7:20 p.m. to wait for a quorum to be established.
Many people are out with illnesses, said Mayor Randy Knaack.
Other business
In other business, the Menomonie City Council:
• Awarded the urban forestry tree contract to Legacy Trees at a cost of $22,360 for 104 trees, of which 52 will be delivered in the spring and 52 in the fall. Each tree will have a trunk diameter of two inches. Menomonie received a 2025 Wisconsin Department of Natural Resources Urban Forestry Grant in the amount of $22,837.67 with a total project cost of $45,6755.35. The grant budget allotted $22,500 for the purchase of trees. The trees will be planted in boulevards and park spaces. Tree species will include Red Cherry, Little Leaf Linden, Sterling Silver Linden, St. Croix American Elm, Triumph Elm and Swamp White Oak.
• Approved a three-year lease agreement renewal for space in city hall on the third floor effective June 1 with Thrive Psychological and Consulting Services, LLC. The rental fee for 2,084 square feet will be $2,347.97 per month.
• Approved a lease agreement renewal with United Way of St. Croix and Red Cedar Valleys, Inc. effective May 1 for rental space in city hall on the garden level. The rental fees for 612 square feet will be $216.75 monthly for one year.
• Approved the City of Menomonie MS4 annual report for 2024. The report details the 2024 efforts in the stormwater program to comply with the city’s municipal separate storm sewer system (MS4) permit. The permit requires education and outreach; public involvement and participation; illicit discard detection and elimination; construction site pollution control; post-construction storm water management; and pollution prevention. The report must be submitted annually to the DNR by March 31.
• Approved Wakanda Park as the selected site for Well No. 9. Test wells were drilled at Wakanda Park and at Phelan Park. The recommendation is to locate the well in Wakanda Park because the site will accommodate a larger well that can pump two to three times the amount of water as a well in Phelan Park. The city controls the entire groundwater recharge area for the Wakanda Park site. The well will be located behind the park maintenance building.
• Approved the proposed certified survey map for Phillips-Medisize on Technology Drive East to combine and reconfigure several existing lots. Lot 1 will house the Origen Center (428 Technology Drive East). Proposed Lot 2 would house the MIM Center (422 Technology Drive East). Proposed Outlot 1 would extend from Nicholas Drive to 21st Street East for the purpose of maintaining contiguity with Tax Increment Finance District No. 17.
•. Approved an amendment to the May 20, 2024, development agreement with Menomonie Holdings 1, LLC to construct an addition to the Phase 1 building as a Phase 2 building and a Phase 3 building that could be a stand-alone building or an addition at 5821 Eagle Point Road. Each building is expected be at least 60,000 square feet.
• Approved the collective bargaining agreement with the Menomonie Police Lieutenant’s Association. The contract includes a 3 percent increase.
• Approved the following appointments based on recommendations from Mayor Knaack: reappointing Sherry Gibbs and Carla Kieffer to the Recreation Advisory Board and Dick Martinson to the Board of appeals; appointing Randy Eide to the Board of Appeals as an alternate. Eide served as the Director of Public Works in Menomonie for many years.
• Approved temporary Class “B” beer licenses for the Red Cedar Racing Association for March 28 and March 29 for a car show at the Dunn County Fairgrounds; for Stepping Stones of Dunn County for July 5 for The bEAT Concert in Wilson Park; for the Dunn County Historical Society for April 26 for the Decades Dance at Holtby Hall.
