City to borrow $4 million in general obligation debt

Amount would fund city projects while awaiting reimbursement

Posted 3/25/26

The Stanley Common Council met as a Committee of the Whole at 5:30 p.m. on Monday, March 16 in city hall. On the agenda for discussion were several items, including a proposed borrowing of $4 million …

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City to borrow $4 million in general obligation debt

Amount would fund city projects while awaiting reimbursement

Posted

The Stanley Common Council met as a Committee of the Whole at 5:30 p.m. on Monday, March 16 in city hall.
On the agenda for discussion were several items, including a proposed borrowing of $4 million in general obligation debt at an interest rate of 2.5 percent, callable in one year.
The debt, meant to fund city projects while the city awaits outside reimbursement funds will be on the next council agenda for approval.
“We discussed this at our next meeting,” Stanley Mayor Mike Henke said of the proposal to borrow $4 million in general obligation debt with 2.5 interest. “Interest rate will be 2.5% for two years, callable after the year. What that means after a year, you could pay it back. We had the money, and that’ll be on the next council agenda, just so you know what’s coming ahead for that question.”
Also in city financial matters from March 16 Committee of the Whole, council members covered the city’s finances, with Henke giving a broad overview of where account balances stood in 2025, the balances carried over to the present budget year.
Committee members approved moving forward two department fund carryovers from 2025 for council sign off, one involving a carryover for the fire department budget of $53,000 and another for streets and grounds totaling $27, 412.
Other account balances reviewed Monday included the tourism fund of $6,223.36, K9 donation fund of $121,903.46, police donation fund balance of $23,061.09, and park improvement and tourism fund balance of $7,628.30. Additionally, the library currently has approximately $3.1 million outstanding as construction continues, the city being awarded a $4.137 million state grant to help pay for the project, many private donations made as well.
Included in action items from Committee of the Whole, committee members heard from Streets and Grounds Foreman Joe Schmitt on hiring three seasonal employees for Streets and Grounds, also considering a proposal from Baker Tilly to raise the city’s Capital Asset Levy Amount from $1,000 to $10,000, deemed a standard accounting practice. The city also discussed a forensic audit proposal from Baker Tilly, projected to cost between $40,000 to $50,000. The uncertainty in cost of the forensic audit is due to the city changing operating systems last year, leading to uncertain retrieval time.
All three items were approved later in council.
Also moved to council for approval was a new plow, approved from Wisconsin Body and Hoist for $56,451.
A brief discussion on the Community Building and local organizations was held as well.
“They paid us 10,000 actually, before the agreement was even signed,” Henke said of the Lions. “They owe us 10 but they did some work.” There were no worries with agreement details.
From there it was into city projects.
“Next thing we have, discussion on review, ongoing city projects on your computer,” Henke said. Current city projects included 345th Street, the business park, Maple Street, Central Water Plant, and Well 11.
“Everything we have contracts out there we’ll take,” Henke said. “We’ll start from the top 345th.” With money out for Haas and CBS Squared, the road would be blacktopped.
Savings were expected in the west business park and the Maple Street project would be done by spring, with two change orders.
“Total was 3.7 million,” Henke said. “We still have $58,000 left to pay them, and they have a second layer of blacktop to put on .” The project includes Church, Helgerson and McKnight Streets.
As for the Central Water Plant, it was being carried out by Market and Johnson, with CBS Squared as project engineer.
“Market and Johnson, is doing the work,” Henke said. “CBS Squared is an engineer.” Also involved with the Central Water Treatment Plant was Water Well Solutions. All told the outstanding balance on the Central Water Treatment Plant and related Well 11 project were a combined $8.8 million, with most of this for the water plant. With $3.1 million left to pay for the library, it made for a total of approximately $12 million.
“The engineers got $600,000,” Henke said of the water plant. “This came out kind of our last meeting. Well 11 had engineering work done but has been pushed out for construction in order to maximize the city’s grant opportunities. A hole had been drilled for $2,000 but nothing was put in, meaning relatively little expense at present.
As for the library, there was a separate sheet.
“There’s a separate sheet on the library,” Henke said. The original contract with Hoeft was for $3.9 million with two change orders following, one approved for $210,744.58 and one unapproved credit for $30,789.88. With work from other vendors including trim, flooring, asbestos removal and more, the total contracted cost for the library came to $4.93,275.14, of which $1,742,257.84 had been paid. Funding for the library included a $4,137,056 state grant, $407,795 in donations, $210,488 from foundations, $15,500 in new donations, and $500,000 borrowed by the city.
Other library contractors included River Architects for $300,000, Lane Brothers with $70,500 for asbestos removal, Core for $400 in asbestos and lead testings, $20,000 to Wood Masters for flooring, $27,500 to Jim Jones for trim shelving and more shelves, $192,971.98 to Henricksen for furniture and bookshelves for the new building, and $57,500 to CBS Squared for asbestos removal bidding documents and grant administration.
Among items moved forward to council for approval from Committee of the Whole were a plow truck quote for $59,451 from Wisconsin Body and Hoist, a new generator for the Eighth Avenue lift station at a cost of $7,749 due to a cracked housing and shut downs due from low voltage, and an agreement with Star Environmental for an Assured Wetland Delineation project at the Central Wastewater Treatment Plant to cost $3,000.
Amendments were made to the employee handbook on Section 1, Item F, Section 2, Item H, Number 2, and Section 3, Item H, Number 5. The three changes to compensation and benefits allow for pro-rating hours around sick days in the streets and grounds department, only affect Schmitt and employee Dave Mendoza, requiring their signature. The committee also moved forward a five year rental agreement related to sewer phosphorous in which the city will rent land at $250 per acre for 59.6 acres at a cost of $14,900, agreement to run through Dec. 31, 2029.
Also Monday, Larry Rudnick was moved forward to council and hired in the water department at a rate of $25 per hour, with the opportunity to go to $26 per hour after six months with 25 cents for each certification earned. The committee also moved and council later approved to change the title for Jake Lukes to Wasetwater Department Supervisor. The move is an internal city one rather an one related to the state, the Wastewater Department Supervisor approving payroll as well as expenditures for the Wastewater department and also submitting bimonthly reports, as Lukes has been doing.
Last from Committee of the Whole for the present was approval of electric Jaws of Life and Chainsaw for the Fire Department as well as a discussion with Schmitt regarding sidewalk repair and questions on grass alleyways in the city,
“I guess my biggest concern right now is this summer, actually, we’re going to go through, cut them all back, brush them out,” Schmitt said. “We’re going to utilize the gravel that we saved up of the other projects that the city paid for, so we already have the gravel and stuff. My biggest concern is there’s certain there’s a handful of alleys, that they’re all grass, and I’ve been told by several residents that the city, years ago, turned them back over to the residents, so I don’t know. I need some clarification.”
Alleyways in question include the alley between Franklin and Dahl as well as the one between fourth and Third Avenue, with complaints about runoff. It was decided that the city should have a water mitigation plan before messing with alleyways to avoid upset residents from water runoff.
As for sidewalks, the city is obligated to take care of the sidewalk on Pine Street in perpetuity as the stipulation was part of receiving grant money for the road. More generally it was decided to make a list of sidewalks in need of repair, ensuring that all residents felt treated equally in the process.
“We have criteria in the ordinances,” Ward 2 Alderperson Jason Meyer said. “I just want to make sure it’s a fair process.”