Portage administrators outline upcoming borrowing, sewer project review and urgent IT upgrades

City administrators told the Portage City Common Council on an administrative report that the city expects to seek a smaller borrowing package in 2025, likely in July, and highlighted an urgent need to fund IT infrastructure upgrades at City Hall.

The administrator said staff met with John Cameron of Ehlers and are planning a combined borrowing for general obligation, water and sewer projects to reduce administrative costs if the combined issuance can remain below the city’s GO debt limit tied to state statutory thresholds. The administrator said the 2025 capital program for water, sewer and general obligation work is expected to be in the $3 million to $4 million range, down from roughly $20 million in 2024, and that issuance would take about 45 days from start to closing.

The administrator also previewed a technical presentation by Strand and Associates at the next council meeting on the sewer treatment-plant upgrade and the Department of Natural Resources mandate that will require rate increases to fund the project. Randy Langer of Strand — he will present at the next meeting, the administrator said — will outline projected costs and the uncertainties in current bidding markets that could raise bids and affect final rates.

On facilities, the administrator described the new municipal building on Cemetery Road as essentially complete, with staff moving in and an open house tentatively planned for March 27. He said efficiencies in the new garage lifts will reduce maintenance times and improve safety.

The administrator gave extended remarks about the city’s main server room at City Hall and the network links that connect other facilities, saying wiring and equipment have been deferred for years and are now failing. He said the city plans an RFP to modernize the physical cabling and server-rack setup and noted prior quotes around $52,000; he warned those costs have likely increased. The administrator added that the city’s perimeter defenses are “quite good,” but that many operational systems still run on aging servers and that subscription-based monitoring services (managed detection/response) can cost $20,000–$40,000 per year. He described the request as urgent because failures could disrupt City Hall operations and police and fire services.

Staff said the city is exploring cloud options for some services but that ongoing subscription costs present budget challenges because state rules and local budgeting practices favor borrowing for capital items rather than operating subscriptions. The administrator said staff will return with specific proposals and possible RFPs.

The administrator also briefly noted ongoing internal staffing vacancies and announced the forthcoming retirement of a long-serving employee, and that audits for 2024 are in progress.