Committee of the Whole

City of Oconomowoc Committee-Of-The-Whole Tuesday, May 20, 2025 - 6:15 PM City Hall - Council Chambers 174 E. Wisconsin Ave. Oconomowoc, WI 53066 (Or immediately following Protection & Welfare) Notice: If a person with a disability requires that the meeting be accessible or that materials at the meeting be in accessible format, call the City Clerk at least 48 hours prior to the meeting to request adequate accommodations. Tel: (262) 569-2186. 1. Call to order and confirmation of appropriate meeting notification 2. Committee Business a. Discussion on Budget Priorities and Strategic Plan Update 2026 b. Discussion regarding funding options for long term Street Improvement planning 3. Adjourn Gina Kozlik, City Clerk City of Oconomowoc Notice is hereby given that a majority of the Common Council will be present at the above scheduled meeting to gather information about a subject over which they have decision-making responsibility. This constitutes a meeting of the Common Council pursuant to State ex rel. Badke v. Greendale Village Board, 173Wis. 2d 553, 494 N.W. 2d 408 (1993) and must be noticed as such, although the Common Council will not take any formal action at this meeting. 1  MEMORANDUM CLERK’S DEPARTMENT Date: May 6, 2025 To: Mayor and Committee of the Whole From: Gina Kozlik, City Clerk Re: 2026 Clerk’s Department Budget Priorities RELATES TO THE STRATEGIC PLAN Strategic Goal- Goal V. Enhance the Effectiveness of City Government BACKGROUND The Clerk’s Department provides service to Elected Officials, residents, businesses, City staff, and visitors daily. With our primary focus on customer service, we handle public inquiries, process alcohol and related licensing, prepare for and attend official meetings, finalize and maintain city records, and administer all phases of Elections. The City’s continued growth and legislative changes affect our responsibilities and place more demands on the department, particularly in the area of Elections. BUDGET PRIORITY ANALYSIS Continuing with the 2025 budget goal related to Badger Books and poll location challenges, I am also considering options for processing the increased amount of absentee ballots on Election Day. There is a central count procedure available to Municipalities under Wisconsin law that would allow absentees to be tabulated here at City Hall under the direction of the Clerk using absentee tabulating election staff. This processing change would also alleviate the necessity to transport absentee ballots out to the polls. With no easy solution to finding new poll locations with schools having safety concerns, and most locations not having sufficient floor space or parking, removing absentee will ease some of the stress at the polls. While I would like to continue to evaluate Badger Books, there are software and hardware updates on the horizon making them more transportable and expanding useability. In considering this, I would also like to evaluate the ability to run Central Count at City Hall using a Badger Book to log and track the absentees processed. Customer Service Area Improvements: I would also like to make improvements to the Clerk’s customer service front desk area for improved customer experience and service delivery. Staff will be getting estimates and investigating options for renovation. 1 2 FINANCIAL IMPACT Initial cost estimate would include a City Hall Badger Book setup for absentee and wages for additional absentee tabulators. Estimate $20,000 (carry-over from 2025) for the Badger Book, and additional election absentee tabulating staff wages at an additional $3,000 for an even-year, four election cycle ($1,500 increase for odd-year, two election cycle year). Cost for Customer Service renovation is not known at this time. 2 3  MEMORANDUM PUBLIC WORKS Date: May 6, 2025 To: Mayor and Committee of the Whole From: Jason Herzog, Department of Public Works Re: DPW 2026 Budget Priorities BUDGET PRIORITIES In preparation of the upcoming 2026 budget cycle, you will find below goals or objectives that will be of interest for the department of public works. The majority of these projects have been part of long term plans, strategic planning, or standard City growth solutions. 1. The replacement of the single lane 1950 steel bridge on Lapham Street. a. A Local Bridge Grant was submitted in 2021 and recently awarded in 2022 to cover most of the design and construction cost. b. The proposed plan is to replace this single lane bridge with a full two lane bridge with sidewalk on the west side. c. Lapham Street will be widened to accommodate the new bridge width and allow for standard north and south traffic. 2. Major street replacement projects. Update the 10-year replacement plan a. 2026 i. Lisbon Rd ii. Lake Dr iii. Second St iv. Parkview Subdivision v. Glenview Ave 3. Lake Bluff Drive Connection a. Review Permitting b. Review Engineering 4. Wisconsin Avenue Improvements a. Engineering design services for 2026 b. Approximately 300’ of street work to be included with the DOT’s project. 1 4  MEMORANDUM ECONOMIC DEVELOPMENT & TOURISM Date: May 6, 2025 To: Mayor and Common Council From: Bob Duffy, Economic Development & Tourism Director Re: 2026 Economic Development and Tourism Budget Priorities TOP BUDGET PRIORITIES The City of Oconomowoc is becoming the destination of choice for new residents, development, businesses, and redevelopment opportunities. As this attraction continues the City must enhance areas of our organization to promote all Oconomowoc has to offer, the growth areas available for new and redevelopment opportunity, as well as celebrate our past and rich history through upcoming significant milestones. These are the primary elements the Economic Development & Tourism Department intends to focus on in 2025 and beyond. Priority #1 Implement East Wisconsin Avenue Redevelopment Master Plan The City adopted design guidelines for the E. Wisconsin Avenue corridor to encourage development and redevelopment opportunities. The City has also established a City Strategic Plan goal to Develop Options and plan for E. Wisconsin Avenue corridor. In 2024, City Staff worked with UWM Community Design Solutions (CDS) the prepared a market, land use and conceptual based scenario/approach to identify redevelopment projects that are feasible to pursue within the area. Implementation will be necessary for the City to realize its vision and strategic plan goal for the E. Wisconsin Avenue corridor. To proceed with the implementation of the E. Wisconsin Avenue Redevelopment Master plan, staff recommends that the City Council allow the Community Development Authority to pursue and seek out redevelopment opportunities within the E. Wisconsin Avenue corridor. Funding for these initiatives related to environmental concerns, demolition, site development and public/private partnership opportunities would necessitate the creation of an additional TIF district for the area. Priority #2 Facilitate & Promote Key Development Areas The Economic Development Department's vision is for Oconomowoc to successfully compete on the state and regional stage for various development opportunities, growth of businesses, and attract talented individuals who fuel them. To make this vision a reality, our strategy is driven by the three goals for the City of Oconomowoc: • Establish Oconomowoc's competitive edge. • Become a hub for diverse business opportunities. • Ensure continued community vitality. Oconomowoc can position for the future through the facilitation & promotion of several key development areas:  Re-investment and revitalization of the Olde Highlander recreation complex; 1 5   Commercial and mixed-use expansion opportunities at Olympia Fields;  Regional commercial real estate investments in the Pabst Farms area o Wingspan Mixed-use development o Pabst Farms Town Centre completion (Eastern & western areas) Through this key development the City can realize continued tax base expansion, business attraction, and employment opportunities for our community. We anticipate any funds needed could be achieved through the budgeted CDA professional services line item. Priority #3 Attraction/Collaboration through Wingspan & Tech Hub Partnerships The City of Oconomowoc is attracting considerable investment in Pabst Farms with the large 200,000+ Sq. Ft HSA building, as well as the four Wingspan Innovation & Incubation buildings totaling 320,000 Sq. Ft. These developments will serve as a catalyst for employment, enhanced tax base, and long-term sustainable economic development opportunities. This will also allow Oconomowoc to be a place for fostering innovation, entrepreneurship, and strategic partnerships across various industry sectors. Recently, SE Wisconsin was identified by the U.S. Commerce Department as a regional tech hub. Oconomowoc’s strategic location between Milwaukee and Madison allows direct access to the strength of our state’s bio-health and personalized medicine industry which can become a leverage asset. Oconomowoc will have the availability of site & building locations to expand opportunities for the commercialization of medical research, research lab space, computing, engineering, and advanced technology manufacturing to drive innovation. With City Staff engaged in these efforts the City can capitalize on this business attraction opportunity and involvement with the key facilitators & decision makers. Through our collaboration, the City will facilitate the successful partnership to implement the Wingspan Innovation & Incubation building availability for regional tech hub opportunities. These efforts will serve as a catalyst for attracting investment, encouraging innovation, as well as drive economic growth and job creation. By engaging in this strategic initiative, the City can collectively transform our economic landscape. My belief is that as stakeholders, Oconomowoc should support these endeavors, recognizing its potential to enhance our city’s competitiveness, diversify our tax base and lead to future prosperity. 2 6  MEMORANDUM FINANCE DEPARTMENT Date: May 6, 2025 To: Mayor and Committee of the Whole From: Laurie Sullivan-Murray, Finance Director Re: 2026 Finance Department Budget Priorities RELATES TO THE STRATEGIC PLAN Strategic Goal- Goal V. E. Maintain/Improve the City’s Financial Sustainability BUDGET PRIORITY ANALYSIS Budget Priorities for 2026: 1. Key to the financial stability of the City is planning for Capital Assets and Infrastructure improvements. The City prepares a 5-year Capital plan annually that is reviewed by Council. The largest expense in the Capital Plan is Street Improvements. In 2025 the City budgeted $2.8M for Street Improvements. The funding comes partly from Levy ($1M) and partially from the issuance of Debt. At the May 20th Committee of the Whole meeting, we will be discussing with Council funding options for a 10-year Street improvement plan. 2. The City relies on Parks Impact Fees to provide new and improved parks to the City Residents. With the recent consolidation of the Village of Lac La Belle and the Town of Oconomowoc, and the border restrictions, now is a good time for Staff to research the remaining availability of impact fee funds. A study of the remaining land use in the City and estimating the build out will give Council the information necessary to make decisions regarding priorities in the future use of impact fees. FINANCIAL IMPACT Evaluated through the 2026 Capital Budget process 1 7 MEMORANDUM LIBRARY DEPARTMENT Date: May 6, 2025 To: Mayor and Committee of the Whole From: Jen Puccini, Library Director Re: 2026 Library Goals and Budget Priorities TOP BUDGET PRIORITIES 1. Finalize Building Project Goals Finalize building project goals based on completed Feasibility Goals and initiate appropriate next steps for project for a potential Capital Campaign. 2. Combining reference and circulation desks into a single service point. Our goal is to have the new desk purchased by the end of 2025. The installation of the desk will happen late 2025 or early 2026. Once desk is installed, we may need new flooring, updated technology, and/or electrical work. 3. Increase our Library of Things Collection The Library of Things is a collection of non-traditional items that supports creativity, lifelong learning, and social connection. At this time, we have Explore Passes, Hotspots, Rokus, Early Learning Kits, and Memory Care Kits. We will gradually add to this collection with donations and purchases. 4. Financial Impact The financial impact has yet to be determined. 8  MEMORANDUM PARKS, RECREATION & FORESTRY Date: May 6, 2025 To: Mayor and Committee of the Whole From: Eric Boettcher, Director of Parks, Recreation & Forestry Re: PRF 2026 Budget Priorities CAPITAL BUDGET 1. Bike and Pedestrian Plan Updates a. Addition of amendments to include future expansion b. Focus on NE quadrant for pedestrian crossway over HWY 67 2. Transitioning Champion Fields to Northeast Regional Park a. Partnership with OSA and 5 O’s b. Developing concept plan and cost estimates c. Provide phased plan for park areas for varied sports areas 3. Lake Country Trail Phase #5 addition a. Connection from Second Street to Jefferson County portion of trail b. Additional parking for trail corridor access OPERATIONAL BUDGET 1. Funding for Rockwell, Boat Launch and Chapman Park Restrooms a. Restroom Utilities & Maintenance - $TBD annually 2. Oconomowoc Community Center Improvements a. 2026 Improvements i. Surfacing Lakeside Porch and Steps ii. Upgrade Sound System 3. Park and Street Bench Amenities a. Coordination effort with parks and streets for amenities replacement program 1 9  MEMORANDUM PLANNING DEPARTMENT Date: May 6, 2025 To: Mayor and Committee of the Whole From: Jason Gallo, City Planner / Zoning Administrator Re: 2026 Planning Department Budget Priorities BUDGET PRIORITIES In 2025 / 2026 Planning would like to complete the following items: 1. Subdivision Ordinance Re-write – The ordinance known as Chapter 18 Subdivision and Platting Ordinance for the City was drafted in 1982 and has had various updates throughout the years. This can be completed as a joint effort between City Staff and outside consultant assistance and possible legal review. Staff will be requesting $20,000 in 2026. 1 10  MEMORANDUM DEPARTMENT – POLICE DEPARTMENT Date: May 6, 2025 To: Mayor and Committee of the Whole From: Chief Jim Pfister Re: Police Department’s Top Budget Priorities for 2026 BUDGET PRIORITIES The police department would like to prioritize the goals and budget priorities listed below for 2025: 1. Rifle Plates By supplying officers with 30 rifle plates to use with their body armor at an estimated cost of $14,325, we greatly enhance their chances of surviving bullet and blunt force trauma. The fire department, which usually arrives after law enforcement has secured the scene or neutralized a threat, is equipped with helmets and rifle plate carriers. Officers will wear these lightweight plates daily along with their body armor. These rifle plates provide increased protection against multiple rifle threats while only adding about 1.0lb of weight. This gear empowers our officers to confront threats directly and better protect our community. With the right equipment, our officers can confidently respond to dangerous situations during active assailant incidents, quickly assist victims, perform life-saving evacuations, and effectively manage threats, ultimately saving lives and reducing risks. 2. Push Button LED Flashing Crosswalk System Crosswalk safety downtown is still a major issue with citizens. To increase safety the police department will be seeking additional resources to promote enhanced crosswalk awareness for approaching vehicles. The LED Flashing Crosswalk System is a wired/solar LED traffic warning system. With the push button activation, this system turns on both sides of the road with motion. It is built with an aluminum alloy board and solar board combined. This crosswalk will increase visibility for drivers on the road with its bright blinking (flashing) LED lights. The anticipated locations will be the 100 block of E. Wisconsin crossing by City Hall, the 100 block of E. Wisconsin Avenue between Bootleggers and Fray, the 100 block of S. Main Street around the post office and the 100 block of N. Main Street around Splash Martini Bar. The estimated amount for each specific location is $15,600.00. Currently the city does not have full time power to these locations. The police department is working with utilities to solve that problem or explore a solar/temp power solution. We would like to purchase two pairs of LED flashing crosswalk systems on 100 block of S. Main Street around the post office. If this system provides positive feedback, we would like to implement another two locations in the future. The total cost would be estimated at $31,200.00 for the two locations. 1 11  3. Police Staffing Request The request is for one full-time officer to be added to the roster of the police department. This position would be funded with already existing funding in the police budget. The police department has continuously reviewed staffing in different areas. The review of the Police Support Specialist area has been completed over the past two years after switching to WCC for dispatching. It is the recommendation of the Police Department to reduce the Police Support Staffing from 5 to 4. The department would also eliminate the Part-Time Police Support Specialist position as well. This will be achieved after significant review of operating hours and workload. The reductions would change the hours of the front office from 24/7 to 6 am to 10 pm Monday through Friday. The police department has further removed the water patrol from the budget and will only retain one boat for emergency rescues on the lakes. The reduction in water patrol funds, one Full-Time Police Support Specialist and Elimination of Part-Time Police Support Specialist would total about $137,00 and the cost of a lateral transfer officer is about $146,000. This leaves a deficit of $9,000 that would have to be added to the budget for 1 new full-time officer position for 2026. 4. Ballistic Helmets By providing officers with 30 ballistic helmets and 30 ballistic face shields, at an estimated cost of $22,500, we significantly enhance their chances of survival. Ballistic helmets are a vital part of personal protective equipment (PPE), greatly improving safety for our officers in high-risk situations involving bullets, shrapnel, and blunt force trauma. This gear empowers our officers to face threats directly and better protect our community. With the right equipment, our officers can confidently enter dangerous situations during active assailant incidents, quickly assist victims, carry out life-saving evacuations, and effectively manage threats, ultimately saving lives and reducing risks. This focused investment is key to creating a safer environment for everyone. Our community, which includes approximately 940 businesses employing 15,368 people and schools educating nearly 6,000 students, deserves the best protection possible. Recent events, like those at the Oconomowoc industrial facilities, sadly underscore the urgent need for advanced gear to keep our officers safe. 5. Mats for Jiu-Jitsu training The purpose of the mats for jiu-jitsu training would be for defense and arrest tactic training. We would use the multi-purpose room at the police department for in-house training. The department has sent a few officers to law enforcement jiu jitsu training (train the trainer) to be able to teach the rest of the officers. The cost of the mats (30ft x 30ft) is estimated to be between $6,234.51 to $7,000.00. The mats can be easily rolled out for training and future needs. These training mats can also be used for the physical agility process for new recruits. We currently go to Oconomowoc High School to use their wrestling mats when available. FINANCIAL IMPACT Evaluated through the 2026 Capital Budget process. 2 12  MEMORANDUM DEPARTMENT - ELECTRIC, WATER & FLEET UTILITY Date: May 6, 2025 To: Mayor and Committee of the Whole From: Kevin Kaari, Utility Manager Re: Top Priorities for 2026 Budget – Utilities & Fleet RELATES TO THE STRATEGIC PLAN Strategic Goal- I. IMPROVE & MAINTAIN EXISTING INFRASTRUCTURE BACKGROUND The following goals and objectives are important for the utilities and fleet department as the 2026 budgets are developed. Most of these initiatives are multi-year initiatives to ensure our drinking water is safe, our electricity stays affordable and reliable, and that our fleet equipment allows our employees to do their jobs safely and efficiently. For the electric utility, modelling and load tracking tools have been developed in 2024 and 2025 to forecast feeder and substation loading at the time of system peak. Each fall, our peak loads are analyzed and compared to our load projections from the previous year. Based on the outcomes of our studies, the results are used to develop projects proactively and allows the utility to plan for capital funded solutions to alleviate the risk of overloading. These tasks are repeated every year. 1) New infrastructure required due to new load growth. a. New underground lines and equipment installations needed to serve new customers. 2) Conversion of overhead power lines to underground. a. The city has 95% of its primary feeders and distribution lines buried underground. Each year we develop projects to convert overhead areas to underground lines. 3) Purchase capital spares for our most important equipment. a. Lead times for critical equipment remain at 75 to 90 weeks. Spares are required for quick recovery in case of failure of this equipment. 4) Cable and Equipment Replacement Program - 2026 a. Continue to replace underground cable that is nearing its end-of-life or has had reliability issues b. Replace aged equipment on our electrical distribution system that has reached the end of its useful life. 5) Lead Service Lateral Replacement Program, 2026 a. Apply for safe drinking water grant and loan programs. i. Historically, Oconomowoc does not qualify for State funding. b. Alternative funding for options for private side lead laterals include: i. Low-interest loan (1%) options for residents through Bank Five Nine. Place on tax roll for 5-year pay back – estimated replacement cost of $5,000 would be $1000/year. 1 13  ii. Consider a water rate case that could include monies to replace private side lead laterals. Would add a small fee to water rates to be earmarked for future private side lead replacements. c. Utility (public-side) lead service lateral replacements i. Continue funding replacements through the yearly street projects, as submitted annually in the 5-year capital plan. 6) New Utility Complex a. The Parks Department continues to work towards planning the relocation of Champion Fields baseball facilities to the Northeast Regional Park. b. A timeline will be developed for a new Utilities complex, when the availability for the proposed utility land is known. 7) Fleet Software a. The implementation of Fuel Master software in 2025/2026 will allow for automation of preventative maintenance service and will allow for better reporting capabilities on our fleet’s performance. FINANCIAL IMPACT Evaluated through the 2026 Capital Budget process. 2 14  MEMORANDUM WASTEWATER/OWPP Date: May 6, 2025 To: Mayor and Committee of the Whole From: Tim Reel, Wastewater Operations Manager/Employee Safety Manager Re: 2026 Budget Priorities BUDGET PRIORITIES 1. Assess Facility Planning effort to develop implementation strategy based on recommendations. A draft of this document will be available mid-2025. After review, this document will be submitted to WDNR for official approval. Specific items of interest are: a. Electrical systems upgrade - This most likely will include specific motor control centers (MCC’s) along with evaluation of feed conductors. b. Solids Thickening equipment – Evaluation and replacement of 40-year-old solids thickening equipment c. Evaluation of RAS suction side piping deficiencies d. Evaluation of aging infrastructure at the facility – This will include items such as: in-operable valves, gates, HVAC and hydrant components 2. SCADA system update – This work will be a collaborative effort with consultants, City IT and Wastewater personnel. This work could be included as part of a larger Facility Planning scoping project or dealt with as a standalone project. a. Evaluation and updating of system hardware components b. Evaluate software licensing balancing economics and needs of the Utility c. Review and development of software alarm and notification system d. Review and development of SCADA user interface 3. Sanitary mainline rehab in collaboration with 2026 Street Program - The goal of the program is to maintain and improve upon the overall condition of buried sanitary infrastructure. This is done through: a. Utilization of cured in place pipe (CIPP) technology to line specific pipes, from the inside. By most accounts this adds 50 years to the lift or the line. b. Use of pipe televising allows us to prioritize future repairs and to positively identify the root cause of blockages or troubled locations. c. Annual inspections assist with asset inventory and aids in condition assessment for manhole structures while also providing feedback on restoration impacts. 1 15  Memorandum TO: MAYOR AND COMMON COUNCIL FROM: BRADLEY R. BOWEN, FIRE CHIEF/EMERGENCY MANAGEMENT DIRECTOR SUBJECT: 2026 BUDGET PRIORITIES DATE: THURSDAY, MAY 1, 2025 CC: FIRE BOARD Below are the budget priorities for the Western Lakes Fire District for budget year 2026. Budget Priorities 1. Professional Development Program – Recruit, Retain, Development of Personnel as Succession Planning Program: Over the past three years, substantial funding has been allocated to ensure that the District maintains adequate daily staffing levels to meet the needs of the municipalities it serves. The development of a diverse array of professional development programs is essential for the District to remain competitive in its recruitment and retention efforts. Investing in the employees who serve the District is critical to their individual success as well as the overall success of the District. One of the goals is to establish professional development and training programs tailored to the various classifications of employees within the District. These programs are designed to provide ongoing knowledge and skills enhancement, which will contribute to employee retention and effective succession planning. 2. Centralized and Consolidate WLFD Management Team within Administrative Headquarters and Training Facility While Reducing Management Positions: Secure and allocate capital funding over the next two to five years for the purpose of designing, constructing, and operationalizing a centralized Administrative Headquarters. This facility will integrate leadership, administrative functions, and essential support services, which will include a comprehensive training center, a fleet maintenance garage, and an Emergency Operations Center. The establishment of this centralized facility is intended to enhance operational efficiency, optimize resource allocation, and improve firefighter competency across the 215 square mile service area. a. Current Management Offices: The management team of the District is currently distributed across five separate stations, resulting in inefficiencies and delays in communication, meetings, and overall operations. In response, the leadership team has formulated a strategy to decrease the number of management personnel through attrition over the next one to five years. Consequently, it is imperative that the remaining administrative staff are centralized in a single location to foster collaboration, enhance team dynamics, and increase operational efficiency. This consolidation will minimize the necessity for staff to travel across the District for meetings and facilitate the prompt resolution of issues involving all administrative personnel. Pabst Station: 1400 Oconomowoc Parkway; Oconomowoc, WI 53066 – Fax: 262-569-6430 Dousman Station: 107 S. Main Street; Dousman, WI 53118 - Fax: 262-431-4812 Oconomowoc Station: 212 S. Concord Road; Oconomowoc, WI 53066 – Fax: 262-569-3297 Sullivan Station: 912 Front Street; Sullivan, WI 53178 – Fax: 262-593-8123 Okauchee Station: W349 N5060 Shady Lane; Okauchee, WI 53069 – Fax: 262 567-0503 Stone Bank Station: W335 N7107 Stone Bank Road; Oconomowoc, WI 53066 – Fax: 262.966.2831 16  b. Current Facility Challenges: The current fire stations were not designed or constructed to accommodate today's staffing levels. Through renovations, these stations have integrated living areas that include kitchens, bedrooms, showers, and offices. However, due to the limited space in existing facilities, company officers and full-time personnel often utilize bedrooms that also serve as offices. Furthermore, the lack of adequate storage space hinders the effective organization and storage of essential station supplies. c. Fleet Maintenance and Training: Currently, the District lacks a designated location for live fire training, which impacts both the ISO rating and insurance premiums; however, the more pressing concern is the training and experience of the District's firefighters. The existing training facilities are insufficient to accommodate larger training sessions. Establishing a central training facility would enhance training opportunities significantly. Additionally, the current fleet maintenance shop comprises two apparatus bays located at the northernmost station. While this location is functional, it is not centrally situated. As a result, when apparatus requires maintenance or when a secondary unit needs to be placed in service due to a failure, it must travel from a more distant location. Centralizing fleet maintenance alongside the administrative facility will improve the efficiency of apparatus repairs and maintenance operations. 3. Emergency Operations Center: The District provides Emergency Management Services to seven municipalities. It is unnecessary for each municipality to establish an Emergency Operations Center (EOC), as this would incur significant costs for infrequent usage. Currently, Fire Station 51 and the City of Oconomowoc Police Department are equipped to operate as Emergency Operations Centers. However, both locations require technological upgrades and enhancements to their operational capacities. As part of the development of the Administrative Headquarters, a centralized EOC will be integrated within the training facility. To secure a secondary location, improvements to the City of Oconomowoc Police Station EOC will also be implemented. Funding for the Fire Station EOC will be incorporated into the overall building expenses, while in 2028, an allocation of $30,000 is designated for the joint EOC. 4. Addressing of Properties: During emergency responses conducted by Emergency Medical Services (EMS), fire departments, and law enforcement agencies, time is of the essence; often, seconds can make a critical difference. It is essential for all municipalities to enforce ordinances pertaining to the visibility and proper posting of property addresses. Typically, these requirements specify standards related to size, color, and legibility. However, the implementation of such standards varies significantly, resulting in situations where emergency responders are unable to locate addresses promptly. The objective of the District is to mandate the use of “Fire Numbers” for properties within municipalities that have not yet established consistent and standardized signage protocols. To this end, the municipalities that require consideration for implementing these standards include the City of Oconomowoc, the Village of Dousman, and the Town of Ottawa. Presently, several municipalities within our service area have adopted these measures, while those that have not will be encouraged to do so. 5. Capital Improvements a. Radio Replacement Program (2028/2029): Collaboration is underway with Waukesha County and its municipalities to implement upgrades to the County Radio System, Pabst Station: 1400 Oconomowoc Parkway; Oconomowoc, WI 53066 – Fax: 262-569-6430 Dousman Station: 107 S. Main Street; Dousman, WI 53118 - Fax: 262-431-4812 Oconomowoc Station: 212 S. Concord Road; Oconomowoc, WI 53066 – Fax: 262-569-3297 Sullivan Station: 912 Front Street; Sullivan, WI 53178 – Fax: 262-593-8123 Okauchee Station: W349 N5060 Shady Lane; Okauchee, WI 53069 – Fax: 262 567-0503 Stone Bank Station: W335 N7107 Stone Bank Road; Oconomowoc, WI 53066 – Fax: 262.966.2831 17  transitioning to Phase II by the year 2028. This initiative entails the replacement of legacy radios that exceed ten years of service life, which is consistent with the expected operational lifespan of such equipment. The project encompasses the coordination of a countywide group purchasing effort, aimed at negotiating a favorable price reduction with Motorola as part of this collective acquisition. The successful execution of this upgrade and the subsequent replacement of equipment will enhance communication capabilities throughout the county, which is essential for ensuring the safety and efficacy of emergency responders. b. Apparatus Replacement Program: The District's long-term capital improvement plan encompasses the replacement of various pieces of equipment and apparatus. This plan has been structured to span the next 20 years and is subject to ongoing reevaluation. This process includes assessing the utilization and service life of each piece of equipment and apparatus in accordance with national, state, and industry standards. The capital improvement plan has been intentionally designed to minimize fluctuations in annual expenditures. As part of the yearly evaluation of the capital improvement plan, the usage and consolidation of apparatus are taken into account. As municipalities evolve and service expectations change, the requirements for equipment and apparatus also adapt accordingly. c. Fire Station Future Facilities Needs: In 2025, the District will work with a professional consultant to conduct a facilities needs assessment and an impact fee study. As various municipalities undergo growth and development, it is essential to strategically plan for the future. This assessment will utilize municipal master plans to determine the necessity for additional or relocated fire stations within the District, thereby ensuring appropriate response times and optimal services. Pabst Station: 1400 Oconomowoc Parkway; Oconomowoc, WI 53066 – Fax: 262-569-6430 Dousman Station: 107 S. Main Street; Dousman, WI 53118 - Fax: 262-431-4812 Oconomowoc Station: 212 S. Concord Road; Oconomowoc, WI 53066 – Fax: 262-569-3297 Sullivan Station: 912 Front Street; Sullivan, WI 53178 – Fax: 262-593-8123 Okauchee Station: W349 N5060 Shady Lane; Okauchee, WI 53069 – Fax: 262 567-0503 Stone Bank Station: W335 N7107 Stone Bank Road; Oconomowoc, WI 53066 – Fax: 262.966.2831 18 2025 Strategic Plan update and Budget Priorities NAME: COUNCIL NOTES * USE THIS WITH THE STRATEGIC PLAN UPDATE HANDOUT TO KEEP TRACK OF NOTES AND IDEAS Page # 7 19  Strategic Goal Objective Strategies/Tactics 1. Evaluate and implement police strategic staffing plan: create implementation plan and report out (increase police officers per shift on road) A. Maintain 2. Research AI/Virtual Reality Training Platforms Quality of Police 3. Evaluate set up and basic requirements for the EOC room at the Police Department. Plan and budget for upgrades. Services 1. Implementation of the Sustainable Staffing Plan- Phase 3 2. Evaluate Fire District future facilities needs B. Provide Quality 3. Evaluation of the one or two aerial ladder concept I.Provide a Safe Fire and EMS 4. Explore additional opportunities to improve ISO rating Services and Secure 5. Research federal/state grant opportunities for staffing and capital equipment Community Staff Owners: C.Enhance 1. Investigate options for addressing safety and visibility for downtown pedestrian crosswalks Utility Director, Programs for Police Chief, Citizen Safety WWTP Director, Fire Chief. Future State: Public 1. Convert overhead power lines to underground – 95% complete – coordinate with street, water and sewer replacements planning D. Provide Reliable, safety is paramount in all and funding in annual budget High Quality, and of the City’s services Affordable Power 2. Underground Cable and Equipment Replacement 3. Evaluate Peak feeder and substation loading times 1. Continue implementation of the Oconomowoc Watershed Protection Program (OWPP) 2. Implement samplong to monitor residential chloride levels E. Provide and 3. Evaluate and implement annually State grant funding for private side lead water laterals replacements and adjust Utility program as needed. Foster Safe and and continue to replace Utility side lead laterals in conjunction with street program Clean Water 4. Implement an overall Water Quality improvement plan for water reservoir at wells 4 and 6. 5. Evaluate and address iron filtration options at City Well sites. Department Notes: JP New Item for A: Evaluate Police Protective Equipment needs. Ie: Rifle Plates/Ballistic Helmets BB New Items for B: Implement Professional Development Program/Centralize and Consolidate WLFD Management Team/Investigate mandatory addressing of properties KK New Item for D: 4. Assure inventory for Equipment Failure: Lead times for some of the key electrical equipment on our distribution system are 75 to 90 weeks long. Failure of this equipment, without a replacement available could jeopardize the reliability of electical service to our customers. Council Notes: 20  Strategic Goal Objective Strategies/Tactics 1.Develop a city inventory of major assets and projected replacement schedule a.City parcels/streets/ b.Water utility – parcels/infrastructure/facilities c.Electric utility – parcels/infrastructure/facilities A. Maintain Our d.WWTP – parcel/infrastructure/facilities Improve and Maintain Existing e.Fleet – inventory/develop funding replacement cycle Our Infrastructure / Infrastructure 2.Accelerate / enhance street improvement/maintenance plan to include water main replacement and Sewer Main rehab program. Facilities 3.Evaluate cost savings using a hybrid of In-house and Contracted Engineering services. Staff Owners: 4. Replace existing blowers with NEROS blowers in 2025 Public Works Director, Utilities Director, WWTP Director 1.Lake Bluff Drive extension – design and permitting, (2025), possible construction (2026) Future State: B. Plan and 2. Wisconsin Avenue Improvements in conjunction with the DOT Oconomowoc has a safe Complete Road 3.Lapham Street Bridge – permitting, design, and construction. and effective Extensions 4.Oconomowoc Parkway extension – This project needs involvement from Waukesha County infrastructure that provides a framework for 1.Complete City Hall space study and remodel - Reconfigure/review space utilization at City Hall. optimal community C. Identify Future 2.Evaluate and plan for the future facility needs of the Electric and Water Utility. enjoyment New Projects, 3.Research the addition of electric charging stations. Timeline for 4.Be a leader in renewable energy Implementation 5.Construction of Outside Waste Receiving Station for Septic and Holding tank at WWTP and Funding 6.Research energy production from waste Mechanism Department Notes: TR New item for A: Assess and prioritize repairs or replacement of lift station pumps and control panels. Goal is to develop a relaement/repair schedule for future planning. TR New item for C: Using the WWTP Facility Planning Report, review and prioritieze recommendations based on need and economics Council Notes: 21  Strategic Goal Objective Strategies/Tactics 1. Explore options and plan for E Wisconsin Ave Corridor Focus on a. Find funding resources for implementation or RFP 2. Promote the St. Paul/E WI redevelopment area. Community 3. Promote downtown development. A.Research Growth and Plan for 4. Continue working on the development of the NE area. City 5. Develop options and housing diversity (starter homes, attainable housing, mix ratio) finding regional solutions. Development 6. Explore providing zoning incentives to developers who provide attainable housing. Staff Owners: Economic 7. Consider allowing accessory dwelling units and live-work units to provide housing as well as affordable office or workspace for entrepreneurs. Development Director, 8. Explore grant funding opportunities or TIF district incentives for businesses. Planning Director 9. Utilize/expand the major façade program funding plan. 1. Establish border agreements with adjacent municipalities. Future State: B.Plan for Future 2. Encourage development within 67/I94 Corridor – promote corridor not individual areas Oconomowoc is Growth Areas for recognized as a premier a. Encourage Pabst Farms area development. Regional community in Lake Country b. Facilitate and promote development of the Olympia Fields Proactively promote for business attraction. Development by fostering an 3. Maintain existing and evaluate future opportunities for private-public partnerships, where appropriate. entrepreneurial spirit and tourism destination, 1. Report on options available for commuter and workforce transportation – internal connections roadway/trails/paths and on-road bike routes. developing and retaining a Plan for Future 2. Explore connecting the Nature Hill School with Meadowview School with pathway. diverse mix of employees Transportation 3. Improve alternative transportation options (electric vehicle, ride sharing, bike share, etc.) and employment opportunities, and D.Create Tourism 1. Enhance historic property inventory and education of historic regulations. revitalizing catalytic Destination 2. Explore creative ideas for Tourism funds. development areas Initiatives 3. Plan and Coordinate Milestone Community Celebrations Department Notes RD Attraction/Collaboration through Wingspan & Tech Hub partnerships Council Notes: 22  Strategic Goal Objective Strategies/Tactics A.Plan and 1. Reconstruct Lac La Belle Boat Launch - design/engineering, grants, multi-jurisdictional funding, construction. Implement 2. Evaluate the Champion Fields 5-year Improvement Plan – Compare option of moving ball fields to NE Region Park. Quality of Life 3. Plan and develop John and Lavinia Rockwell Park phase 2. Assets and 4. Plan and construct Oz Plaza Improvements. Community 5. Plan and develop Northeast Regional Park- restrooms, playground, athletic facilities, lighting, other park amenities IV. Improve Our Amenities Quality of Life Assets B. Review and 1. Research and evaluate alternative schedules for parks mowing. Staff Owners: Update Parks, 2. Prioritize connectivity throughout the City by updating the Bicycle and Pedestrian Plan to connect neighborhoods to schools, businesses and parks Parks Director, Recreation and 3. Explore additional uses for the lower level of the Community Center. Library Director Future State: 1. Evaluate Village Green enhancements and public restrooms in downtown. Community members 2. Optimize Library facility and location to meet current and future community needs are proud of the natural, C. Evaluate i. Library Space Needs Analysis cultural and recreational Future 1. Secure funding for space needs analysis assets of the City Community 2. Evaluate identified needs and review options for remodel/expansion Needs and 3. Work towards combining the reference and circulation desks to create a single service point. Projects 4. Maximize the use of self-service kiosks at the Library 5. Assess underutilized park property and other city property. 6. Analyze future senior services needs Department Notes: EB Plan and develop safe connection in the Northeast Corner of Oconomowoc bike and pedestrian connection over Highway 67 EB Chapman Park Barn Park Planning and Implementation - Barn and Native Planting Restoration EB Evaluate Village Green enhancements and public restrooms in downtown. *Moves from Objective C (Future) to Objective A Council Notes: 23  Strategic Goal Objective Strategies/Tactics 1.Implement Badger Books system for Elections- Implement Central Count of Absentee votes with hybrid of Badger Book Enhance the A.Update City 2.Update Subdivision and Platting Ordinances effectiveness of Ordinances & 3.Update the Sign Ordinance our city Elections 4. Research and update Pay for Poll Workers including Training and In Person Voting days 5. Evaluate Polling Locations for size and efficiency, consider new options government B.Attract, Motivate 1.Review and recommend updates to the City wage and benefit plan to remain competitive. and Retain City 2.Replace Applicant Tracking Software Administration and Employees 3. Employee Trust Funds New Administration Software Organizational Improvement 1.Maintain IT infrastructure and network efficiencies. C.Improve Our 2.Research and implement software to create efficient workflows for new Development, permitting and licensing. Technology 3.Conduct IT security and quality audits annually. Staff Owners: City Administrator D.Improve the 1.Implement agenda media software for enhanced public access to recorded City meetings. Finance Director, Effectiveness of 2.Continue to develop paperless options for meeting participants. Human Resources Our Meetings Director, City Clerk E.Maintain/Improv 1.Prepare/fleet and equipment long term replacement plan and policies to fund a reserve. e the City’s 2.Prepare streets maintenance and replacement plan with sustainable funding options. Financial Sustainability F.Improve Our Internal 1.Prepare meeting rooms to accommodate virtual meetings Communication Future State: Our City is G.Improve Our 1.Continue to improve use of online/social media communication high-performing, External 2.Improve our access to online services for the public. (Permitting, Licensing) efficient, effective and Communication 3.Improve City Website and access to Citizens for online services and information gathering. known for its service excellence. 1.Strengthen partnership with Waukesha County H.Increase 2.Strengthen partnerships with Oconomowoc School District. Partnerships Department Notes: GK Add Election Day staffing to include absentee tabulators City Hall GK Clerk Customer Service Counter improvements LS Evaluate options available to stabilize funding for ongoing Street Improvements LS Analyze remaining available Impact Fees as the City is built out. Council Notes: 24  Council Budget Priorities Priorit y Department Funding Source? Description 25  MEMORANDUM FINANCE DEPARTMENT Date: May 20, 2025 To: Mayor and Committee of the Whole From: Laurie Sullivan-Murray, Finance Director Mark Frye, City Administrator Re: Funding Options for Long-Term Street Financing Discussion RELATES TO THE STRATEGIC PLAN Strategic Goal- 5.E Maintain/Improve the City’s Financial Sustainability BACKGROUND Street improvement financing is one of the City’s largest Capital expenditures. The Levy Limit law is a legal constraint on the amount of financing that can be done through the annual levy. Since the State has ruled that Transportation Utilities are not legally allowed, there are only two viable options allowed to provide the additional funding needed. The first and most common is issuing Debt to finance the annual infrastructure improvements. The amount of annual Debt service payments is added to the legal levy limit to pay for the Debt Service that is due in the Budget year. The second is to perform a Levy Limit increase through Referendum. The State allows for the funding increase to be added to the base Levy through a successful referendum. ADDITIONAL ANALYSIS The following is a summary of the financing options outlined in the Ehlers report. Two primary funding approaches were analyzed: Levy Limit Referendum or Debt Issuance. 1. Levy Limit Referendum Under Wis. Stats. §66.0602(4), the City may exceed its state-imposed levy limit with voter approval through a referendum. This option would generate a dedicated annual levy increase to fund street projects on a pay-as-you-go basis, avoiding interest costs. Key Considerations: - Requires a resolution from the City Council with specific ballot language. - Eligible for placement on spring or fall general elections, or special elections in odd-numbered years. Estimated Impact: 1 26 - Levy Increase: $2.8 million annually - Tax Rate Impact: $0.68 per $1,000 of assessed value - Annual Cost to Median Home ($430,000): $291 2. Debt Issuance Alternatively, the City could borrow funds for the street program through phased debt issuance. This defers some costs over time but results in significant interest payments. Estimated Impact: - First-Year Tax Rate Impact: $0.06 per $1,000 - Annual Cost to Median Home: $28 - Estimated Interest Cost over 10 Years: $7.5 million FINANCIAL IMPACT Option Annual Tax Total Interest Notes Impact (430K (2027–2036) Home) Levy Referendum $291 $0 No borrowing: full pay-as-you-go Debt Financing $28 (first year) $7,576.277 million Lower annual cost; higher long-term Ramping up to cost $255 Choosing the levy referendum would avoid approximately $7.5 million in interest payments over 10 years, and $340K in financing costs, but with a higher immediate tax impact. Debt financing spreads costs but increases total expenditure due to borrowing costs. The Levy referendum spends a total of $28M over 10 years on street improvements. The Debt Financing funds $28M of Street improvements, but costs $35.9M over 20 years. RECOMMENDATION City Council direction is requested on the preferred financing path. SUGGESTED MOTION No motion is required. 2 27 City of Oconomowoc, WI Street Financing Options May 20, 2025 28  2 29  3 30  4 31 Levy Limit Referendum • Wis. Stats 66.0602(4) allows municipality to exceed its allowable levy limit by referendum ✓ Governing body must adopt a resolution. Resolution must include ➢ Amount of the levy increase ➢ % increase over allowable levy ➢ Whether the increase is for the • The language of the ballot question is dictated by statute and must be contained in the resolution 5 32 Levy Limit Referendum: Timeline • A municipal referendum can be held ✓ In odd-numbered-years as a special election on the same dates used by a school board ✓ Otherwise, must be held during the spring primary, spring election, partisan primary or general election 6 33 Proposed 2027-2036 Street Financing Summary 7 34 Debt Payment Summary 2027-2036 Financings 8 35 Debt Model Tax Impact (2027-2036 Financings) 9 36 Annual Impact of $2.8 million levy 10 37 Initial Tax Rate Impact Tax Rate First year of debt payments projected tax rate increases $0.06/$1,000 resulting in $28 annual increase for Debt $430,000 home. Tax Rate First year of levy referendum projected tax rate increases $0.68/$1,000 resulting in $291 annual increase for Referendum $430,000 home. 11 38 Overall Comparison (10 year planning period) 12 39 Important Disclosures Ehlers is the joint marketing name of the following affiliated businesses (collectively, the “Affiliates”): Ehlers & Associates, Inc. (“EA”), a municipal advisor registered with the Municipal Securities Rulemaking Board (“MSRB”) and the Securities and Exchange Commission (“SEC”); Ehlers Investment Partners, LLC (“EIP”), an SEC registered investment adviser; and Bond Trust Services Corporation (“BTS”), a holder of a limited banking charter issued by the State of Minnesota. Where an activity requires registration as a municipal advisor pursuant to Section 15B of the Exchange Act of 1934 (Financial Management Planning and Debt Issuance & Management), such activity is or will be performed by EA; where an activity requires registration as an investment adviser pursuant to the Investment Advisers Act of 1940 (Investments and Treasury Management), such activity is or will be performed by EIP; and where an activity requires licensing as a bank pursuant to applicable state law (paying agent services shown under Debt Issuance & Management), such activity is or will be performed by BTS. Activities not requiring registration may be performed by any Affiliate. This communication does not constitute an offer or solicitation for the purchase or sale of any investment (including without limitation, any municipal financial product, municipal security, or other security) or agreement with respect to any investment strategy or program. This communication is offered without charge to clients, friends, and prospective clients of the Affiliates as a source of general information about the services Ehlers provides. This communication is neither advice nor a recommendation by any Affiliate to any person with respect to any municipal financial product, municipal security, or other security, as such terms are defined pursuant to Section 15B of the Exchange Act of 1934 and rules of the MSRB. This communication does not constitute investment advice by any Affiliate that purports to meet the objectives or needs of any person pursuant to the Investment Advisers Act of 1940 or applicable state law. 13 40