Dunn County adopts 2026–2030 CIP after debate over $9.5 million geothermal HVAC plan

The Dunn County Board of Supervisors adopted a 2026–2030 capital improvement plan on a voice vote after extended discussion about a proposed geothermal replacement of the judicial center’s HVAC system and related solar work.

County administrative staff and finance presenters told supervisors the geothermal option carries higher upfront costs but substantially lower 20-year operating costs. “We told you it wouldn't increase property taxes and with the knowledge that it would. It wasn't something that we wanted to move forward in in a bait and switch type way,” the staff presenter said, describing why the county did not sign the original contract under prior assumptions.

Supervisors and staff focused on three practical questions: firm bid pricing versus guaranteed-savings contract proposals, whether a competitive bid process would reduce the Verigee estimate, and how federal energy incentives could change the financing picture. Beata, a county finance staff member who presented debt scenarios, called the vote “a policy vote. It's not a vote to spend this money,” saying the CIP adoption only gives staff direction to plan and budget for the projects.

Staff summarized the financial assumptions included in the plan: an updated estimate that accounts for piping replacement and system differences, an illustrative $9,500,000 borrowing scenario for the geothermal/HVAC project, and a conservative approach that assumes the county will not receive the $2.5 million federal energy incentive when structuring debt. Staff said the Verigee contract estimate that included piping came in at about $9,240,000; a competitive bid could reduce that but would not guarantee amounts. Staff also estimated piping costs near $2,000,000 and noted the original 2024 CIP assumed roughly $11,000,000 for solar and geothermal combined.

Supervisors asked how the project schedule would interact with other capital projects. The highway committee moved its highway-building project and design funds later in the CIP to reduce overlapping borrowing pressure; the highway building design was shifted to 2027 with construction slotted in 2028 under the committee recommendation. Staff said borrowing to support the geothermal plan would likely be structured to begin in 2027 and that timing of any federal rebate would affect the final debt structure and repayment schedule.

Several supervisors asked about procurement and state law. Staff said the county must run a competitive public works bidding process under Wisconsin statutes; the county cannot obtain a guaranteed “rock solid” price from a firm in a way that would allow that firm to both prepare the detailed design and then bid on the job without creating fairness concerns.

The board voted to adopt the 2026–2030 CIP as presented; the motion was made by Supervisor Morehouse and seconded by Supervisor Quinton. Subsequent budget amendment items related to environmental services and health were also advanced later in the meeting.

The CIP adoption directs staff to move forward with planning and budgeting under the assumptions described; it does not authorize construction contracts or debt issuance. Final contract awards, bids and any debt authorizations will return for formal approvals under the county’s purchasing and debt policies.