The Appleton Municipal Services Committee has approved a significant revision to the state municipal agreement for the Old Oneida Street Bridge project, reflecting a dramatic increase in estimated costs due to inflation. Originally projected at $2.5 million in 2020, the total cost has now surged to approximately $4 million, prompting the city to shoulder over $2 million of the additional expenses.
Deputy Director Neuberger explained that the Wisconsin Department of Transportation (DOT) had denied the city's request to increase state funding, which remains capped at $2 million. This funding structure means that the city will need to allocate funds from its 2025 and 2026 budgets to cover the local share, with $1.3 million already approved for 2025 and an additional $850,000 requested for 2026.
Committee members expressed concerns about the nearly 200% increase in project costs, questioning whether such spikes are common in current construction projects. Neuberger noted that while the past few years have seen unusual inflation in the construction industry, costs are beginning to stabilize.
The project timeline has also shifted, moving from the state's fiscal year 2025 to 2026, a change attributed to the city's need for additional local funding. The committee's unanimous vote to approve the revised agreement marks a crucial step in advancing the bridge project, which is essential for local infrastructure.