At the city council’s March 6 meeting Financial Advisor Mike Bubany showed the members how various capital expenditures will affect the city’s finances and tax requirements over the coming years. Bubany inserted various projects, taking into account inflation, into a spreadsheet to demonstrate how each will affect the city’s budget over the next several years.
Ideally, the city’s operational costs should be kind of stable; the general fund or operational costs should grow at the same rate as the city’s tax base. The debt per capita should ideally be around $5,000.
Bubany made note of two possible tremendously expensive projects that could affect the city’s budget for years. First, the needed upgrade to the city’s wastewater treatment plant (WWTP) and second, the community swimming pool. Councilman Dean Aug referred to the first as a necessity and the second as a want.
The city is also looking at a large electric project in the coming years which will be paid out of the electric fund and will not affect the city’s general obligation debt.
The cost of the WWTP upgrade is expected to be around $55 million and planned for around 2030 or later. Bubany said this is unaffordable for the city without significant grant funding. The city will need to pursue both state and federal funding to help with the cost.
A street project will also need to be addressed in the coming years to maintain upkeep of city streets.
Councilman Steve Hall said, “There will be a big bite no matter what we do; we need to be honest with our constituents.”
Swimming Pool
Burbach Aquatics provided an assessment of the 70-year-old pool earlier this year. A rehabilitation of the old pool will cost $3.6 million and the construction of a new pool is expected to cost $4.7 million. These are estimates and not actual costs.
The next step is a design and cost estimate for the new construction expected to cost $15,600. Hall suggested a plan be put together and then let the people decide through a referendum whether or not to go forward with the construction of a new pool. Aug said, “We need to be totally transparent.” The council agreed it will be a new pool or nothing.
City Administrator Ryan Throckmorton said he would present the information they have to the Park Board. It was noted that a swimming pool never breaks even with operating costs; that is also a consideration. A motion was approved to move forward with Burbach Aquatics to develop new construction plan and to provide referendum support costing a total of $23,850 ($15,600 for development and $8,250 for referendum support). If it can still be done for this coming election, the referendum will be on November’s ballot to allow Preston’s citizens to accept or reject the construction of a new swimming pool.
Other Business in Brief
- Two quotes were provided for the replacement of deck, stairs, and railing on the tourism center. The lower quote submitted by 507 Timber Built LLC in the amount of $5,200 was accepted. Councilman Jon Wood did not participate in the discussion or provide his vote because one of the quotes was submitted by a business partner of his.
- The EDA revolving loan policy was updated. The interest rate was revised, late fee included, inventory loan term was revised, and childcare businesses and a loan application review process were included.
- Throckmorton reported that about 75% of emerald ash borer trees on private property have been mitigated. A third letter has been sent out to property owners with the remaining diseased trees. No action was taken this day. In May next steps will be made to get the remaining trees removed. Property owners will be notified and have a hearing, before the council issues an order of enforcement.
- Rock and bituminous bids from Bruening Rock and Rochester Sand & Gravel were approved as submitted.
- Suzanne Gardner and Rachel Ebeling were appointed to the Tourism Board.
- Jacine Johanningmeier was hired as a Casual EMT. She is a licensed EMT and is employed full-time in the field.
- A Post Prom donation in the amount of $100 was approved.
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