Salem Lakes board directs staff to pursue regional road consortium and Innovation Grant application

The Salem Lakes Village Board voted to direct the village administrator and legal counsel to pursue development of an intermunicipal road consortium and begin drafting the agreements and materials needed to apply for an Innovation Grant through the Wisconsin Department of Revenue.

Board members voted in favor after staff and the village attorney outlined a proposed structure: a consortium board with one representative from each participating community, a three-quarter voting threshold for major actions, a treasurer function for payments, and an engineer and supporting staff to manage bids and inspections. Administrators said the consortium’s initial focus would be bulk bidding and project administration for road maintenance, with the possibility of adding services such as sewer lining later.

Legal counsel advised the board that the intergovernmental agreement (IGA) is likely to be lengthy and detailed, covering membership, voting rights, fiscal terms, exit provisions, ownership of shared equipment and bidding procedures. Counsel recommended preparing a legal-opinion letter that identifies statutory risks and necessary contract terms before sharing a draft IGA with potential partners. Staff and trustees discussed cost-sharing for attorney fees and agreed drafting costs should be split among the participating municipalities.

Staff emphasized timing: to qualify for the Department of Revenue Innovation Grant the village must assemble the IGA, obtain a FEIN and complete the SL405 application within the program window; meeting a March 31 application timeline would be challenging but achievable if other municipalities (Paddock Lake, Twin Lakes and others) move quickly. Administrators noted the grant would be calculated as a percentage (approximately 25%) of qualifying 2025 expenditures and would be paid to each participating municipality, which remains responsible for projects it submits to the consortium.

Trustee Dennis moved to authorize the administrator and legal counsel to investigate and begin development of the intermunicipal-cooperation agreements and other legal instruments necessary to create the consortium and to coordinate with other municipalities; the motion was seconded and passed by roll call (Trustees Barhydt, Cooley, Favor, Hopkins, Gant and the President voted yes). Next steps include a legal-opinion letter from counsel and follow-up staff discussions with prospective partners.