Onalaska council authorizes up to $8.1 million debt issue, approves transfers for fire truck and to pay short-term borrowing

The Onalaska City Council adopted a resolution authorizing the city to issue up to $8,100,000 in notes for refinancing and capital projects and approved several related budget transfers and fund designations at a regular meeting reported in the transcript.

The authorization covers refinancing a $4 million short-term note for the community center, about $3.985 million for levy-supported capital improvements and $410,000 for water, sewer and storm enterprise projects, according to Brad, financial advisor with Baird. "This resolution would authorize issuance up to $8,100,000," he said during a presentation to the council.

Why it matters: combining the refinancing and capital financing into a single note is intended to reduce issuance and administrative costs and improve marketability, the adviser said. Council members discussed two repayment‑term options — a shorter maturity (2039) and a longer one (2041) — and were told the shorter option would lower total interest costs by roughly $340,000 over the life of the issue.

Sabrina, the city finance director, told the council the Omni Center and the general fund finished the year with surpluses. "We are showing a surplus in the Omni, and that will only grow. So good news for the Omni Center this year," she said when presenting the financials. The council approved the Omni Center 2024 financials and the city general fund 2024 financials earlier in the meeting.

Votes at a glance - Resolution 4-2025 (bond authorization, up to $8,100,000): Motion carried. Mover: Dan Stevens; Second: Mike Bilkey. Outcome: approved. No roll-call recorded in the transcript; the chair called for "Aye" and the motion carried. - Resolution 5-2025 (transfer $500,000 from 2024 general fund to equipment replacement for purchase of a fire truck): Motion carried. Mover: Mike Bilkey; Second: Dan Stevens. - Resolution 6-2025 (transfers to and from various departments to reconcile 2024 budget variances): Motion carried. Mover: Dan Stevens; Second: Mike Bilkey. - Resolution 7-2025 (transfer from 2024 general fund to special revenue fund for DARE program): Motion carried. Mover: Mike Bilkey; Second: Dan Stevens. - Resolution 8-2025 (transfer $600,000 from 2024 general fund to debt service fund to pay off higher‑interest state trust fund short‑term borrowing): Motion carried. Mover: Dan Stevens; Second: Mike Bilkey. - Designations (equipment replacement fund commitments for fire-department staffing study, IT projects, city hall wayfinding signage) and designation of $100,000 for outstanding assessment litigation: Motions carried (omnibus motion; mover: Dan Stevens; second: Mike Bilkey). - Reserve funds for employee retention ($100,000 to account 14142): Motion carried. Mover: Dan Stevens; Second: Mike Bilkey. - Gunnison Health System (Gunderson) parking ramp fourth-quarter and annual 2024 results: placed on file; motion carried.

Discussion and context Brad explained the structure and timeline of the proposed financing: marketing the note nationwide, preparing an official statement, securing a bond rating, and a planned closing around April 1 if market conditions allow. He outlined two maturity choices and described a plan to amortize shorter‑lived projects on the front end (five‑year repayment for short‑lived items) and longer projects over longer terms. He said estimated interest rates would be about 4.23% for the shorter (2039) maturity and about 4.32% for the 2041 maturity.

Councilmembers expressed support for a shorter amortization schedule to reduce total interest costs and to move the city toward the shorter repayment practice used by comparable cities. Sabrina confirmed the proposed borrowing schedule kept levy‑supported debt service below a $5,000,000 annual target under the scenarios shown.

Budget transfers and designations approved at the meeting addressed 2024 variances and one‑time needs: moving funds within departments to comply with accounting standards, designating $500,000 for a new fire truck from surplus general fund revenue, reserving $100,000 as a precaution for potential liabilities related to outstanding assessment litigation, and reserving $100,000 for an employee retention benefit (described as a time‑limited insurance/benefit contribution). The council also approved an omnibus designation of roughly $72,000 combined to complete a fire department staffing study, IT multi‑factor authentication and Microsoft 365 implementation, and wayfinding signage.

The council approved paying off a state trust fund short‑term borrowing at about 6% interest by transferring $600,000 to the debt service fund; Sabrina estimated that payoff would save about $82,000 in interest.

Other business The meeting also included routine approvals: minutes, Omni Center and general fund 2024 financial statements, the human resources monthly and annual reports, and the Gunnison Health System parking ramp report. Human resources reported lower overall turnover for 2024 (down from 14% to 7.6%) but noted turnover concentrated in police and fire. The council adjourned after completing the agenda.

Ending Council members said they would take the bond resolution to the council (city council) next week for final signatures and that staff would present the financing results to the council once the borrowing is priced. No specific closing date for the issuance was required by the adopted resolution; authority to finalize within the stated parameters was delegated to city officials.