Council orders resolution to document Hillandale water-project funding after months of dispute

The Muskego Common Council directed staff on Oct. 28 to prepare a resolution that documents the sources and amounts of funds used to pay for the Hillandale water-main project and to return the resolution for formal council approval.

Public comment earlier in the meeting raised transparency concerns about the project—s financing. Scott Dickman, a resident, urged the council to "bring a motion to create a resolution, second, and then have a vote and just discuss it," saying the public deserved an open accounting of where roughly $1,000,001 in shortfalls originated and how those funds were reallocated.

At the meeting the mayor acknowledged administrative errors in how the project paperwork and approvals had been handled and said multiple legal and municipal advisers had reviewed the matter. City staff described prior authorizations for ARPA funds and capital budgeting but agreed there was confusion in the audit trail and that additional documentation and a formal resolution were appropriate to place the funding on the public record.

Alderperson Decker summarized figures that he said should be included in the resolution: the original ARPA authorization ($2,630,006.78), other ARPA residuals (reported in council discussion as $1,630,006.78 remaining to be documented), $1,000,000 shown in a 2024 capital budget item, $102,942.33 from the capital expenditure fund and $31,550.64 from the sewer utility. Council supporters said a single resolution laying out the ARPA and utility transfers would close the open questions and correct the administrative record.

Council agreed to instruct staff to draft a resolution listing the amounts and sources so that the totals match project expenditures; the intent was to formalize the accounting and provide a transparent public record. Several council members reiterated they had not intended to hide expenditures and that, while multiple mistakes occurred in processing, a corrective resolution would be the proper remedy.

The meeting record reflects strong public interest in the issue and direct calls for transparent accounting. Staff and council emphasized that any corrective resolution would be developed in consultation with the city attorney and returned to the council for a formal vote.

Next steps: staff will prepare a draft resolution documenting the funding sources and amounts for the Hillandale water project and will present it to council for formal action.