Lomira Board Evaluates South Avenue Funding Concerns

Concerns about funding the South Avenue project arose after the reading of Resolution #1056 at the Lomira Village Board meeting on Wednesday, May 14.
Passing the resolution is required for the Community Development Block Grant (CDBG) application to fund the South Avenue project. The grant is a 2:1 match and covers up to $1 million. The resolution reads that the matching funds have been “committed to the project prior to the submission of the CDBG application.”
“We are taking out a loan for $1.5 million, then?” asked Trustee Gary More.
“Up to, yes. The proposed project is about $2.5 million, and we already dedicated 500,000 dollars from the utility fund savings account for some of South Avenue. Assuming we get $1 million from the CDBG grant, we will be taking out a loan for most likely... about $1 million to $1.5 million for South Avenue,” explained Administrator-Clerk-Treasurer Jenna Rhein.
“How are we going to pay for that?” inquired Trustee More.

Rhein answered, “It will come from sewer, water, and general fund, similar to how Highway 175 was split up. Most of it will come from the sewer and water fund.”
Passing the resolution does not mean the village is taking out the loan immediately. The village will take out the loan only if it receives the CDBG grant.
South Avenue is not the village’s only upcoming project. In 2028, the village will replace the utilities beneath Highway 67 when the state repaves the road.
“How does that reflect on the 2028 sewer and water budget for [Highway] 67?” asked Trustee More.
“That will be another loan... Right now with our water rate increase, we had planned that there was that 6% contingency in there. The PSC wants us to set aside $200,000 to $250,000 a year towards future projects. For the 2025 budget, we are actually setting aside $300,000 for future projects, so that money from 2025 could help make a significant installment towards this project. In the 2026 budget, we are going to have to set aside $200,000 to $250,000. We are just going to do that every year,” stated Rhein. “We had about a $60,000 payment we were making in the water department for Highway 175. That dropped off this year. We made our final payment. So, there’s $60,000 we can put in the water department in 2026 to go towards this loan.”
Director of Public Works Nick Roskopf added, “I think when the PSC set up the [water] rates, the assumption was we should be able to afford one of the projects and have to take out a loan for the other one... South Avenue is more than we expected. I know the engineers are aiming high. We did meet with MSA and discuss where we can take out from here... You just really start to end up with a very piecemeal project.”
The explanations did not ease Trustee More’s hesitations.
“I don’t mean to be a hard person about this. I just want to get in my head how it’s going to be paid,” stated Trustee More. “If $60,000 a year is coming off of one loan that we are going now, and it doesn’t affect the rates, it can continue on for ten years. Fine. I’m okay with that. That’s the plan that we go with, but if we don’t have a plan, that would be a problem.”
Rhein provided the board with more information on other available funds and an alternative option.
“I can tell you right now we have $50,000 budgeted in 2025 for maintenance at Well #2 because that’s every ten years. We normally wouldn’t have that expense... We are also putting in $50,000 to $100,000 more into savings than we need to in 2025,” explained Rhein. “What other costs are going to come up? I don’t know. I know we want to be in a secure position. We don’t want to increase rates. I’m really trying hard to make it that way, but I don’t know what’s going to come up. The alternative is we can decide to forgo this project, and we can wait.”
“That is the other option, which is a bad option because we really need to do South Avenue, without a doubt. I don’t have any arguments with that,” said Trustee More. “I wish we had a better idea of how it’s going to happen because I don’t feel like we have that.”
Addressing Rhein and Roskopf, Trustee More further inquired, “Do you guys feel comfortable that we are going to be in a good position by taking out this loan?”
“I think it’s going to be about when we get to 2028 for Church Street,” answered Rhein. “We are really going to have to keep the water budget very firm until then to make sure we can handle another debt payment.”
“I don’t think we have a choice. We just patched South Avenue and patched half of a patch we just put in last year. If we can start to reduce our water main breaks by $10,000 a year. That’s also a benefit,” stated Roskopf. “Even if we had to raise the rates, I don’t think we have a choice. We’re to the point where something has got to start getting repaired. The infrastructure is from 1943, maybe.”
Trustee Eric Kohlmann made the motion to approve Resolution #1056, commit match funds and certification of match funds secured for the Community Development Block Grant, which passed 6-0. Trustee Jennifer Priesgen was absent.
Board Matters:
• The board discussed approving Resolution #1057, adopt three-year capital improvement plan for the Community Development Block Grant. The motion to approve Resolution #1057 was made by Trustee More and passed unanimously.
• The board also discussed passing Resolution #1058, adopt five-year capital improvement plan. Trustee More made the motion to approve Resolution #1058, which passed 5-0. Trustee Joey Jewell, who was attending the meeting virtually, had connection issues and did not vote.
• The Streets, Utilities & Solid Waste Committee recommended that the board approve outsourcing radium sampling and testing at Well #2 to Water Quality Investigations. The DNR has required the village to complete quarterly testing at the well due to increasing radium levels. The DNR has not yet required the village to install a costly radium filter. The purpose of outsourcing radium sampling is to discover where the radium is entering the well and create a treatment plan. The outsourcing would cost roughly $22,000. A motion to approve outsourcing radium sampling was made by Trustee Rebecca Alf and passed unanimously.