Onalaska board approves multiple capital items, moves water/sewer projects into mortgage revenue bond

The Onalaska Board of Public Works and Utilities took a series of unanimous votes Oct. 7 to approve routine contracting and to reorganize several 2026'2027 capital-improvement projects, including grouping water, sewer and storm projects into a mortgage revenue bond package.

Among the actions the board approved were authorization for general engineering services, a change order on the 2025 Theater Road improvements, street and utility project moves in the five-year CIP, and the placement of multiple water/sewer/storm projects into the mortgage revenue bond list. The board also approved seasonal operational items including the city's annual snowmobile trail routing.

Key votes and motions

- Snowmobile trail (2025'2026 season): The board approved the East Snowmobile Trail for the 2025'2026 season with the condition that the club provide a certificate of insurance. The motion passed unanimously on voice vote.

- General engineering services (Shore, Ehlers/Hendrickson/SEH): Staff recommended and the board approved a professional-services authorization not to exceed $20,000 for Shore, Elliott & Hendrickson for typical engineering tasks such as traffic engineering, survey and construction staking.

- Change order, 2025 Theater Road Improvements: The board approved change order No. 2 to cover final asphalt quantities, a net increase of $10,407.83; staff reported the amount is within the CIP budget and the project's reimbursement expectations.

- Capital-improvement program motions and mortgage revenue bond: After staff presentations and member discussion, the board moved several public-works items from the proposed 2026 CIP to the 2027 list and voted to include the 2027 water, sanitary sewer and storm sewer projects in a mortgage revenue bond. Staff said the board would borrow the grouped amount in 2026 for multi-year work; finance staff provided totals showing approximately $1.805 million in mortgage-revenue projects for 2026 and $5.6695 million for 2027, for a combined $7.4745 million (borrowing costs not included).

- Specific project approvals: The board approved the State Highway 16 water main crossing (to support development at the Nicolai property), Sand Lake Road street lighting (to be funded from TID 6), a TID-funded US 53/Sand Lake Road regional storm sewer design item, SCADA replacement upgrades ($250,000), and the transfer of several storm-sewer and drainage repair projects into the 2027 mortgage revenue bond package. The board also moved Sixth Avenue North reconstruction to 2027 to align funding.

Why this matters

Grouping utility projects into a mortgage revenue bond is a common municipal strategy to finance water, sewer and storm infrastructure through utility-rate-supported debt rather than the property-tax levy. Finance Director Sabrina Steger noted the city's mortgage revenue borrowing plan will be repaid by utility customers and that the board's decisions will be reflected in upcoming budget hearings.

Meeting logistics and next steps

Staff said certain projects will appear in public hearings so the council and public can comment on the final CIP and bond plan. Staff will return with final consultant-proposal responses, contract awards and the detailed financing schedule for council consideration before construction contracts are let.

Ending note

All motions reported in this summary passed on unanimous voice votes during the Oct. 7 meeting; staff will present details, cost confirmations and contract documents at follow-up meetings before construction begins.