Finance Committee

CITY OF PRESCOTT FINANCE COMMITTEE WEDNESDAY, SEPTEMBER 23 5:00 PM MUNICIPAL BUILDING 800 BORNER ST PRESCOTT, WI 54021 1) Call to Order 2) Roll Call 3) Discussion on Concept Plans and Costs for Police, Library, City Hall and Shared Space Improvements 4) 2026 Budget Overview 5) 2027 Capital Improvement Items Discussion a) Equipment and Vehicles b) Well #4 Treatment Project c) Fairy Wonderland Park Improvements d) 2027 Mill and Overlay e) Orrin Road Mill and Overlay 6) 2028 and Beyond Capital Projects a) Extension of Rydeen Road b) Long Term Water Improvements 7) 2027 Wages and Personnel 8) Discussion on Long Term Options for 256 Front Street 9) Adjourn NOTICE ACCESS TO THE MUNICIPAL BUILDING FOR THE DISABLED IS AVAILABLE AT THE MAIN ENTRANCE. ALL THOSE WITH SPECIAL NEEDS SHOULD CALL CITY HALL OFFICES (715-262-5544) IF ASSISTANCE IS REQUIRED IT IS POSSIBLE THAT A QUORUM OF THE COMMON COUNCIL OR OTHER CITY COMMITTEES MAY BE PRESENT AT THIS MEETING. THIS IS INCIDENTAL AND NO ACTION WILL BE TAKEN BY THE COUNCIL OR ANY OTHER COMMITTEES. To: Finance Committee From: Matt Wolf, City Administrator Date: September 15, 2026 Subject: Municipal Facilities Concept Planning – Police, City Hall, and Library Background In January 2024, Cedar Corporation completed a comprehensive Municipal Facilities Needs Assessment for the City of Prescott evaluating the existing and future facility needs of the Police, Fire, EMS, City Hall, and Library. Since that time, the City Council has held several discussions regarding potential facility improvements and the long- term location of these municipal services. As the planning process progressed, the City evaluated several alternatives for a combined Public Safety Building. Challenges associated with available sites, property acquisition, costs, and operational considerations resulted in the Council reconsidering how the Police, Fire, and EMS facility needs could be addressed separately. The Council subsequently authorized Cedar Corporation to complete updated conceptual planning focused on the existing City Hall/Library and Police Department properties. The approved scope directed Cedar Corporation to evaluate renovation of the existing City Hall/Library building together with an expansion that could accommodate a new Police Department and shared municipal spaces. The work also included space planning, site analysis, conceptual layouts, and updated estimates of probable construction costs. Discussion Cedar Corporation has now completed the conceptual planning work. Cedar Corporation will attend the Finance Committee meeting to present the updated plans, explain how the proposed spaces are organized, and review the considerations that led to the current concepts. The updated concepts maintain the existing City Hall/Library facility while developing a new Police Department and shared municipal space as an addition to the existing building. The plans also identify areas for potential future improvements, including a potential future Fire Department addition and associated driveway, so that the City can consider how the site could accommodate longer-term municipal facility needs. At this meeting, the primary purpose is to give the Finance Committee an opportunity to review the conceptual plans, ask questions of Cedar Corporation, and provide feedback as the City moves from conceptual planning into consideration of project costs and financing. Next Steps Cedar Corporation is currently developing an updated project cost estimate based on the completed conceptual plans. That estimate is anticipated to be presented to the City Council at its September 23, 2026 meeting. Following the updated cost estimate, City staff will evaluate the potential financial impact of the project. This analysis will include potential borrowing requirements, estimated property tax impacts, possible project phasing, available City funding sources, and other financing considerations. Staff intends to bring this financial analysis back to the Finance Committee on October 7, 2026. At that meeting, the Committee can review the estimated financial impact and discuss potential next steps should the City Council determine that it wishes to continue moving the project forward. No final decision to proceed with construction is being requested as part of the current conceptual planning discussion. The upcoming cost and financing analysis is intended to provide the Council and Finance Committee with additional information necessary to determine whether, when, and in what form the project should advance. Recommendation Review the updated conceptual plans with Cedar Corporation and provide comments or direction regarding the proposed Police, City Hall, and Library facility concept. Attachments Updated Conceptual Planning for Municipal Facilities PROPERTY ZONING INFORMATION PROPERTY INFORMATION ADDRESS: MUNICIPALITY: COUNTY: PROPERTY BUILDING SETBACKS FRONT YARD SETBACK: SIDE YARD SETBACK: REAR YARD SETBACK: EXISTING PARKING COUNT: NEW PARKING COUNT: 800 BORNER ST N 1601 PINE ST CITY OF PRESCOTT PIERCE 25 FEET 10 FEET 15 FEET 81 64 MATERIAL LEGEND EXISTING BUILDING 25' - 0" 10' - 0" 15' - 0" 10' - 0" CITY HALL AND LIBRARY 10' - 0" 10' - 0" POLICE PROPERTY LINE BUILDING SETBACK BORNER ST N PINE STREET NORTH EW S PROJECT NORTH // IIMUNICIPAL FACILITIES CITY OF PRESCOTT 09.15.2026 A1 EXISTING SITE PLAN 1" = 40'-0" EXISTING SITE PLAN NORTH EW S PROJECT NORTH PROPERTY ZONING INFORMATION PROPERTY INFORMATION ADDRESS: MUNICIPALITY: COUNTY: PROPERTY BUILDING SETBACKS FRONT YARD SETBACK: SIDE YARD SETBACK: REAR YARD SETBACK: EXISTING PARKING COUNT: NEW PARKING COUNT: 800 BORNER ST N 1601 PINE ST CITY OF PRESCOTT PIERCE 25 FEET 10 FEET 15 FEET 81 64 MATERIAL LEGEND GRASS ASPHALT CONCRETE STORMWATER POND PROPERTY LINE BUILDING SETBACK BORNER ST N PINE STREET LIBRARY POLICE CITY SHARED EMS FUTURE TRAIL HALL STORMWATER EXISTING MECH. UNDERGROUND STORMWATER TREATMENT FUTURE FIRE FUTURE DRIVEWAY // IIMUNICIPAL FACILITIES CITY OF PRESCOTT 09.15.2026 A2 OPTION 01 1" = 40'-0" CONCEPTUAL SITE PLAN LIBRARY EXISTING COUNCIL CHAMBERS EXISTING AV COURT RECORDS ACTIVE STOR. LONG TERM STOR. RECP. JUDGE CHAM. CONFERENCE CLOSED SESSION LOBBY WORK ROOM MECH. #2 COMMUNITY ROOM GENERAL STORAGE STOR. TR SCREEN / FENCE SCREEN / FENCE MULTIPURPOSE ROOM MENS WOMENS EL EV. ME CH. BREAK ROOM STAFF FITNESS MULTIPURPO SE STORAGE SALLY PORT IMPOUND W LOCKER ROOM RECORDS PATROL INTER. RECP. WORK ROOM CONFE- RENCE TR LOBBY EVIDENCE EVID. PROC. WEA- PONS INTAKE INTER. DUTY BAG STORAGE TR TR M LOCKER ROOM INTER. BREAK ROOM STOR. TR MECH. #1 JAN. LIBRARY 10,240 SF CITY HALL 6,230 SF SHARED 6,849 SF POLICE 17,760 SF 43,319 SF EXISTING MECHANICAL OFFICE OFFICE OFFICE OFFICE OFFICE OFFICE OFFICE SQUAD GARAGE KITCHEN DINING BREAK DAY ROOM OFFICE GARAGE LOC- KER STOR. STORAGE EMS 2,240 SF OFFICE OFFICE OFFICE OFFICE OFFICE OFFICE OFFICE OFFICE PROJECT NORTH NORTH EW S AREA LEGEND TOTAL: 1/16" = 1'-0" BLOCK DIAGRAM // IIMUNICIPAL FACILITIES CITY OF PRESCOTT 09.15.2026 A3 OPTION 01 1/16" = 1'-0" DIAGRAMTIC SECTION NORTH EW S PROJECT NORTH PROPERTY ZONING INFORMATION PROPERTY INFORMATION ADDRESS: MUNICIPALITY: COUNTY: PROPERTY BUILDING SETBACKS FRONT YARD SETBACK: SIDE YARD SETBACK: REAR YARD SETBACK: EXISTING PARKING COUNT: NEW PARKING COUNT: 800 BORNER ST N 1601 PINE ST CITY OF PRESCOTT PIERCE 25 FEET 10 FEET 15 FEET 81 64 // IIMUNICIPAL FACILITIES CITY OF PRESCOTT 09.15.2026 A4 OPTION 02 PROPERTY LINE BUILDING SETBACK BORNER ST N PINE STREET LIBRARY POLICE CITY SHARED EMS FUTURE TRAIL HALL STORMWATER EXISTING MECH. UNDERGROUND STORMWATER TREATMENT FUTURE FIRE FUTURE DRIVEWAY 1" = 40'-0" CONCEPTUAL SITE PLAN MATERIAL LEGEND GRASS ASPHALT CONCRETE STORMWATER POND PROJECT NORTH NORTH EW S // IIMUNICIPAL FACILITIES CITY OF PRESCOTT 09.15.2026 A5 OPTION 02 LIBRARY EXISTING COUNCIL CHAMBERS EXISTING AV COURT RECORDS ACTIVE STOR. LONG TERM STOR. RECP. JUDGE CHAM. CONFERENCE CLOSED SESSION LOBBY WORK ROOM MECH. #2 COMMUNITY ROOM GENERAL STORAGE STOR. TR SCREEN / FENCE SCREEN / FENCE MULTIPURPOSE ROOM MENS WOMENS EL EV. ME CH. BREAK ROOM STAFF FITNESS MULTIPURPO SE STORAGE SALLY PORT IMPOUND W LOCKER ROOM RECORDS PATROL INTER. RECP. WORK ROOM CONFE- RENCE TR LOBBY EVIDENCE EVID. PROC. WEA- PONS INTAKE INTER. DUTY BAG STORAGE TR TR M LOCKER ROOM INTER. BREAK ROOM STOR. TR MECH. #1 JAN. EXISTING MECHANICAL OFFICE OFFICE OFFICE OFFICE OFFICE OFFICE OFFICE SQUAD GARAGE KITCHEN DINING BREAK DAY ROOM OFFICE GARAGE LOC- KER STOR. STORAGE OFFICE OFFICE OFFICE OFFICE OFFICE OFFICE OFFICE OFFICE 1/16" = 1'-0" BLOCK DIAGRAM To: Finance Committee From: Matt Wolf, City Administrator Date: September 15, 2026 Subject: 2027 Capital Improvements Discussion The City is working to update our Capital Improvement Plan (CIP) this year for 2027- 2033. In 2027 the City of Prescott has several capital projects found within our CIP (https://www.prescottwi.gov/DocumentCenter/View/960/CIP-2025-2031). We will be reviewing the 2027 CIP projects with the Finance Committee as follows: Equipment and Vehicle Replacement The City of Prescott as part of our Capital Fund has a vehicle replacement program. This program alternates annually between the Police and Public Works Department. The Police Department replaced a squad this year so it is Public Works turn for a replacement. For 2027 the City budgeted $58,300 for the replacement of the 2009 Chevy Pickup truck currently in the fleet. This funding comes directly out of the Capital levy that is done annually, which is currently set at $389,174 for 2027. Well #4 Treatment Project In 2022, the City completed testing of all three municipal wells and determined that PFAS was present at levels requiring the City to address treatment under the new federal drinking water standards established by the U.S. Environmental Protection Agency (EPA) on April 10, 2024. Under the current federal rule, public water systems must comply with the applicable PFAS Maximum Contaminant Levels by 2029. The EPA has proposed a rule that would allow eligible public water systems to request up to a two-year extension, potentially extending compliance to 2031. That proposal has not yet been finalized. Regardless of whether an extension is ultimately approved, the City has continued moving forward with improvements necessary to address PFAS within its drinking water system. The City has completed improvements to Well No. 3 that bring the well into compliance with the new PFAS drinking water standards. Well No. 3 had issues with both elevated nitrate and PFAS concentrations. Because treatment was necessary for both contaminants, reverse osmosis was selected as the appropriate treatment method. The City's next priority is Well No. 4. Unlike Well No. 3, Well No. 4 currently requires treatment for PFAS. Based on the characteristics of the well and available treatment technologies, anion exchange (AIX) has been identified as the preferred treatment method. AIX requires a smaller building footprint and can provide PFAS removal performance comparable to granular activated carbon (GAC). The City is currently working with Water Surplus to complete a pilot study evaluating three treatment media: 1. Norit GAC 400 2. Lanxess TP 108 DW AIX Resin 3. ResinTech SIR-110-HP AIX Resin The Wisconsin Department of Natural Resources (DNR) approved the pilot study parameters. Water Surplus has completed an interim report showing Lanxess TP 108 DW AIX Resin as the most effective of the three media evaluated to date for PFAS removal. The interim report has been submitted to the Wisconsin DNR. CBS Squared has also worked with Water Surplus to develop a full-scale treatment design for Well No. 4 based on the pilot study results. The current estimated cost of the full-scale Well No. 4 treatment project is $4,427,000. The City has submitted the project for funding consideration through the Wisconsin DNR Safe Drinking Water Loan Program's Emerging Contaminants Program. This program is specifically intended to assist communities with projects that reduce or eliminate PFAS from drinking water. Under the current program, eligible emerging-contaminant projects may receive principal forgiveness of up to 70% of eligible project costs. Because Prescott has a population of fewer than 5,000 residents and may qualify under the program's disadvantaged-community criteria. Final funding will depend on the DNR's review and allocation process.The City anticipates receiving a final determination regarding its funding allocation in October 2026. The City has also submitted the Well No. 4 project for federal appropriations/Community Project Funding consideration through Rep. Van Orden and Senator Smith’s office. The project has preliminarily been included for federal funding consideration at $700,000. However, the Wisconsin DNR has informed the City that any federal appropriation received for the project would reduce the amount of principal forgiveness available through the Safe Drinking Water Loan Program. If that occurs, the federal appropriation could provide little or no net financial benefit to the City or its water utility customers compared with receiving the equivalent amount through DNR principal forgiveness. Because the project involves the City's regulated water utility, it is also subject to review and approval by the Public Service Commission of Wisconsin (PSC). The project has been submitted to the PSC for consideration. In its preliminary review, PSC staff provided the following estimated rate impact: Commission staff estimates that implementation of the proposed water project would result in the need to increase customer water rates by approximately 34 percent. Currently, the average Residential customer who uses 3,000 gallons of water per month pays a water bill of $34.16 per month. The 34 percent rate increase will result in an average Residential customer water bill of $45.77 per month. This City has already made a water rate adjustment previously to fund improvements on Elm, Locust, and Washington Streets, as well as the Well No. 3 treatment project. As part of those improvements, the City increased water rates by approximately 86%. Those rate adjustments were reviewed and approved by the Public Service Commission of Wisconsin as part of PSC Case No. 4850-WR-102. The City of Prescott is also a participant in multidistrict national litigation against manufacturers of PFAS. As a result of that litigation, the City has received approximately $803,461 to date that is available to help offset PFAS-related costs. The City is proposing to combine these litigation proceeds with available Water Utility fund balance and DNR principal forgiveness to minimize or potentially eliminate the amount of additional borrowing required for the Well No. 4 project. Well #4 Treatment Financing Total Project Cost $4,427,000 SDWLP-EC (70% EC) $3,098,900 Multi-District PFAS Litigation $803,461 City's Water Fund Balance $539,039 The final project cost will not be known until construction bids are received, which is anticipated in January 2027. The plans and specifications will be presented to the City Council for approval, and the Council will also be asked to approve the final construction contract and financing plan. The ultimate financing structure will depend on several factors, including: • The actual construction bids received; • The final amount of DNR principal forgiveness awarded; • Council approval of PFAS litigation proceeds available; • The amount of Water Utility fund balance the Council chooses to apply to the project; and • Final approval from the Wisconsin DNR and Public Service Commission of Wisconsin. Once those items are known, the City will be able to determine the final amount, if any, that must be financed through the Water Utility and the corresponding effect on customer water rates. Attachments 1. Site and Grading Plan – Well #4 Improvements 2. Exterior Renderings – Well #4 Improvements Fairy Wonderland Park Improvements As a result of grant funding received for the Elm/Washington Street project after the City completed its 2023 borrowing, the City currently has a surplus of $1,138,457 in its Capital Projects Fund. These funds were allocated to two projects planned for 2027 in order to eliminate the need for additional borrowing. The first project is the 2027 Mill and Overlay Program, which will be discussed in the next section. The second project is the planned improvements to Fairy Wonderland Park, for which the City originally set aside $683,567. Fairy Wonderland Park is a partnership project between the City and Healing Play, Inc., formalized through a Memorandum of Understanding for improvements to the park. Healing Play, Inc. has raised more than $500,000 toward the installation of Phase 1 and Phase 2 playground equipment. In 2023, the City Council approved a concept plan for Fairy Wonderland Park that incorporated the improvements being pursued by Healing Play, Inc. The concept plan included a stormwater pond, parking lot, future phases of playground equipment, solar lighting, a youth soccer/football field, restrooms, and other minor park amenities. For the third and final phase, the City and Healing Play, Inc. worked together to submit a grant application to the Wisconsin Department of Natural Resources (DNR) for funding through either the Knowles-Nelson or Land and Water Conservation Fund. The total estimated cost of the project, including the Phase 3 playground equipment improvements being coordinated by Healing Play, Inc., is $959,210. The original grant request was for 50% of the estimated project cost, or $479,605. On September 18, 2025, the City was notified by the Wisconsin DNR that it had been awarded $387,594 through the Land and Water Conservation Fund. Based on the current project estimate, this would leave approximately $571,616 to be funded by the City through the Capital Projects Fund for a total savings of $111,951. Because the Land and Water Conservation Fund is a federal program administered in Wisconsin through the DNR, the City must receive and execute the formal grant agreement before contracts can be awarded or equipment can be ordered. The City has not yet received the grant agreement. As a result, both the City and Healing Play, Inc. are currently awaiting execution of the grant agreement before proceeding with the next phase of the project. Once the grant agreement is executed, the City will work with Cedar Corporation to sign a contract to complete the design and bidding process for the planned improvements. Construction bids will then determine the final project cost. At the same time, Healing Play, Inc. will be able to begin ordering the equipment planned for installation as part of the third and final phase. Attachments 1. Fairy Wonderland Park Concept Plan 2027 Mill and Overlay Project The second project planned as a result of the additional funding received for the Elm/Washington Street project is the 2027 Mill and Overlay Project identified in the 2025–2031 Capital Improvement Plan. The project was originally planned as a mill and overlay of portions of Monroe, Warren, Lawrence, and Walter Roads, along with full length road mill and overlay improvements on Mississippi, Wacota, and Cedar Streets. The Capital Improvement Plan includes a total project budget of $564,617 for this work. After further discussion with the Public Works Department, staff is recommending that the project be changed from a traditional mill and overlay to a reclamation and overlay project. The primary difference between the two methods is how the existing pavement is handled. With a traditional mill and overlay, the existing asphalt surface is milled and the removed material is hauled off-site. With reclamation, the existing pavement and underlying material are pulverized and recycled in place to create a new and improved base for the roadway. Reclamation is being recommended in part because there is no curb and gutter throughout much of the project area. Over time, sediment has accumulated along the edges of the roadway, gradually raising the adjacent grade. As a result, portions of the roadway now sit lower than the surrounding ground, which can cause stormwater to collect on the pavement rather than properly drain away. This standing water contributes to premature deterioration of the asphalt and increases ongoing maintenance needs. Reclamation would help partially address this issue by allowing the roadway profile to be raised as part of the reconstruction process, improving drainage and extending the useful life of the pavement. The most permanent solution would be to install curb and gutter throughout the project area. However, doing so would significantly increase the overall project cost and would likely require additional storm sewer and related infrastructure improvements. Following reclamation, the roadway would receive approximately 3.5 inches of asphalt, compacted to approximately 3 inches, consisting of both a base course and a wear course. This approach allows the City to reuse the existing roadway material while providing a more substantial reconstructed base than a traditional mill and overlay. The City plans to develop the bid package in October 2026, with construction anticipated during the spring or summer of 2027. Historically, although the City has solicited bids from multiple asphalt contractors for similar projects, Monarch Paving has been the only contractor to submit a bid. Staff will again solicit competitive bids for the 2027 project in an effort to obtain the most favorable pricing available. Attachments 1. 2027 Mill and Overlay Project Map Orrin Road Mill and Overlay Project Originally the Orrin Road Mill and Overlay project was part of a larger project that included the installation of a sidewalk or multi-use path. This project originally was estimated at $1,545,350. However, the City moved forward with submitting a TAP Grant through the Wisconsin DOT for planning pedestrian improvements along US Highway 10, which was approved. As a result, of that planning effort the City moved forward with a construction and design grant for those improvements, which the construction portion was approved in August of this year by the Wisconsin DOT. The construction of these pedestrian improvements will not take place until 2030. However, the condition of Orrin Road does necessitate that these improvements are done sooner. This mill and overlay would include the section of Orrin Road from Pearl Street to Campbell Street. Then from Filkins Street to Dexter Street. The section of Orrin Road from Campbell Street to Filkins Street would not be included as it is planned to be closed for a pedestrian multi-use path as part of the pedestrian improvements in 2030. The City has moved forward with borrowing for the design of these improvements and as part of that borrowing included $457,627 for the mill and overlay of Orrin Road. Similarly to the 2027 Mill and Overlay Project a bid package would be prepared this October. Public Works would be doing curb and gutter repairs so the work would not begin until summer of 2027. Attachments 1. Orrin Road Mill and Overlay Project Map 890 890 889 891 891 892 892 890 889889889 889 891 101EXIST. WELL ROOMA100EXIST. CHEM. ROOMA 102WATER TREATMENT ROOMA 103STORAGEA DS DS FFE=892.78892891890890891892 892891890890 891892 891 890890FFE=892.78 -20.11%-10.37% WELL #4ADDITIONPRESCOTT, WIPRELIM SITE & GRADING PLANC103VERT. SCALE:HORIZ. SCALE:DRAWN BY: PROJECT NO.CHECKED BY:DATE: SHEETREVISIONSENGINEERS - SURVEYORS - ARCHITECTS770 Technology WayChippewa Falls, WI 54729Phone: 715.861.5226www.cbssquaredinc.comDATE:DESCRIPTION:1" = 10'XXX--/--/----XXX---------- PROPERTY LINEPROPERTY LINE PROPOSED NEWASPHALT REPAVE EX.DRIVEWAY 10.15 17.19 PROPOSEDBUILDINGADDITION OPTION 1 AERIAL VIEW- NO SCALE EXISTINGNEWADDITION WATER TREATMENT PLANT - WELL 4ADDITION CONCEPTS APRIL 10, 2026 PRESCOTT, WISCONSIN OPTION 1 PERSPECTIVE VIEW 1 - NO SCALE WATER TREATMENT PLANT - WELL 4ADDITION CONCEPTS APRIL 10, 2026 PRESCOTT, WISCONSIN OPTION 1 PERSPECTIVE VIEW 2 - NO SCALE WATER TREATMENT PLANT - WELL 4ADDITION CONCEPTS APRIL 10, 2026 PRESCOTT, WISCONSIN C O R P O R A T I O N STORMPOND SOCCER FIELD RESTROOMS CITY OF PRESCOTTFAIRY WONDERLAND PARKCONCEPT PLAN EXISTINGTRAIL FAIRY WONDERLANDCONCEPT LAYOUT PEARL STREET CANTON STREET FENCE PARKING LOT PARALLEL PARKING(TYP) 29 STALLS RELOCATEEXISTINGTRAIL 21 STALLS LIGHT POLES(TYP) 2 SOLAR LIGHT(TYP)60' SPACING BICYCLE RACKS To: Finance Committee From: Matt Wolf, City Administrator Date: September 16, 2026 Subject: Ryden Road Extension Background In 2021, the City of Prescott purchased approximately 150 acres of land for the expansion of the Prescott Business Park. The acquisition was intended to provide the City with land to support long-term commercial and industrial growth. The City currently owns approximately 150 acres, with roughly 143 acres being actively marketed for development and approximately seven acres retained for potential future municipal use. As part of preparing the property for future development, the City established Tax Incremental District No. 6 in September 2024. TID #6 was created as a Mixed-Use District to assist with public infrastructure and other incentives necessary to support development within the Business Park. The district was created September 30, 2024, and has an expenditure period extending through September 30, 2039. In 2025, Cedar Corporation was hired to complete preliminary engineering for the extension of Ryden Road (see attached), including an overall grading plan, preliminary stormwater pond modeling, utility layout, sewer lift station layout, and a preliminary construction cost estimate. The purpose of this work was to better define the infrastructure costs necessary to serve the Business Park and allow the City to have more meaningful discussions with prospective businesses. The preliminary engineering was particularly important because earlier inquiries included businesses seeking smaller parcels of approximately five to six acres. Without the Ryden Road extension and supporting infrastructure, smaller projects are difficult to accommodate because an individual development may not generate sufficient increment to independently support the cost of extending the necessary infrastructure. In March 2026, the City approved an agreement with IAG Commercial to provide professional brokerage services for the Business Park. The purpose of the agreement was to expand the City's market reach, provide professional real estate expertise, and more actively promote the property to developers, site selectors, and commercial and industrial users. As part of discussions with IAG regarding how to improve the marketability of the Business Park, IAG recommended that the City develop a master planning concept that would allow prospective users to more clearly visualize development opportunities on the property. Following review of proposals, the City retained Ayres Associates in 2026 to develop a three-dimensional master concept and visualization package for the Business Park. The work is intended to provide realistic, market-ready images showing potential roadways, parcels, grading, stormwater facilities, buildings, landscaping, and other site features. These materials can be used by both the City and IAG for economic development recruitment, marketing, presentations, grant applications, and future infrastructure planning. A preliminary 2D layout has been completed and is attached. Ayers is now working on creating the 3D layout of the business park. Collectively, the City has now taken several significant steps to position the Business Park for development: acquisition of the property, creation of TID #6, preliminary infrastructure engineering, professional brokerage services, and development of a master concept plan. Discussion The next significant step is construction of the extension of Ryden Road, which is necessary to make additional portions of the Business Park development ready. Although the City can currently market the property, the lack of an improved roadway and municipal utility extensions creates limitations for prospective users. Smaller businesses cannot easily access individual development sites without a significant upfront infrastructure investment. At the same time, larger industrial and commercial users frequently seek sites where road and utility infrastructure is either already available or can be constructed within a predictable development schedule. Waiting until a specific development is secured before beginning the infrastructure process can place the City at a competitive disadvantage when businesses have compressed site-selection and construction timelines. Staff is therefore asking Council to consider construction of the Ryden Road extension and associated infrastructure in 2028. Establishing 2028 as the anticipated construction year would allow sufficient time during 2027 to complete final engineering, permitting, financing, bidding, utility coordination, and other project preparation. The proposed project would include the roadway extension together with storm sewer, sanitary sewer, water main, stormwater improvements, and related miscellaneous construction necessary to provide development access to additional Business Park parcels. The proposed financing concept would divide the project between TID #6 and the City's utility funds. The street, storm sewer, and miscellaneous portions of the project would be financed through a borrowing to be paid by TID revenues. For planning purposes, the construction estimates have been adjusted to include approximately 10% inflation from the original construction costs to a 2028 construction year. PROPOSED FINANCING MODEL - RYDEN ROAD EXTENSION Sources Future 2028 Borrowing $1,154,670 Water Fund $391,215 Sewer Fund $915,750 Total $2,461,635 Uses Sewer Improvements $915,750 Water Improvements $391,215 Storm Sewer Improvements $300,575 Street Improvements $639,870 Miscellaneous $214,225 Total $2,461,635 The current TID #6 financial model incorporates the Ryden Road borrowing into the district's projected cash flow. The borrowing anticipates approximately $103,852 in annual Ryden Road-related expenses during the debt repayment period of 15 years ending in 2045. The attached TID #6 T ax Increment Forecast, shows that the district could handle these payments. Due to the increase in value from increment in existing land/improvements and new improvements driving future revenues from CapVest and Foley. The sanitary sewer and water portions of the project would initially be funded through their respective utility funds rather than through the TID borrowing. If Council would like to move forward with construction in 2028, a determination can still be made if all or some of the utility funded improvements should be reimbursed by TID #6. This funding model allows the City to proceed with needed infrastructure without requiring TID #6 to immediately finance the entire project while preserving the City's ability to reimburse the utility funds if future Business Park development generates sufficient increment. The benefits of the extension of Ryden Road: • Expands the Marketability of the Business Park • Creates Development-Ready Sites. • Supports Faster Development Timelines • Makes Smaller Parcels End Users Viable • Reduces Reliance on a Single Large User. • Improves the City's Ability to Respond to Development Inquiries • Positions the Business Park for Long-Term Growth Recommendation Consider adding Ryden Road to the City’s Capital Improvement Plan for 2027-2033 for a 2028 construction timeline. Attachments 1. Cedar Corporation Preliminary Plans for Ryden Road Extension 2. Ayers 2D Concept Plan 3. TID #6 Financial Forecast Model C O R P O R A T I O N● ● Preliminary 07/30/2025 C O R P O R A T I O N● ● C O R P O R A T I O N● ● C O R P O R A T I O N● ● C O R P O R A T I O N● ● C O R P O R A T I O N● ● C O R P O R A T I O N● ● LOT 1(25.32 AC) LOT 2(6.40 AC) LOT 3(9.65 AC) LOT 6(6.61 AC)LOT 7(3.68 AC) LOT 11(13.78 AC) LOT 10(7.66 AC) LOT 15(3.36 AC)LOT 14(3.04 AC) LOT 18(2.29 AC)OUTLOT 20(4.89 AC)LOT 17(1.96 AC)LOT 16(2.24 AC) LOT 13(2.80 AC)LOT 12(3.30 AC) LOT 8(4.61 AC)LOT 9(6.12 AC) LOT 4(12.68 AC)LOT 5(12.69 AC) LOT 19(2.63 AC)LOT 21(1.63 AC) NORTH0150300 File: C:\ACC\ACCDocs\Ayres Engineering Services\Prescott Business Park\Project Files\3.Production\Civil3D\Exhibits\Concept Layout.dwg | Layout: Exhibit (2) | Plot Date: 31/08/2026 PRESCOTT BUSINESS PARK - PRESCOTT, WI | CONCEPT LAYOUT8/26/2026Ayres Associates | ################################################ | ############ | www.AyresAssociates.com | # 51-7323.00 City of Prescott, WI Tax Increment Forecast TID No. 6 District Classification Mixed-Use Creation Year 2024 Creation Date 9/30/2024 End of Expenditure Period 9/30/2039 Maximum Life of District (Final Year) 2044 Final Revenue Year 2045 95% 90% Projected 0% Total Total Foley CapVest Projected Ryden Total Projected TID No. 6 Construction Value Revenue Inflation New TID Value Projected Projected Pay-Go Pay-Go Other Road Projected Annual Cash Year Year Year Factor Development Increment Tax Rate Tax Revenue Revenue $197,603 $4,545,000 Expenses Expenses Expenses Results Balance 2022 2023 2024 - - - - - - - 2023 2024 2025 - 16.56 - - - - - 2024 2025 2026 - 984,800 17.01 16,748 16,748 - 16,748 16,748 2025 2026 2027 - - 4,312,400 17.01 73,337 73,337 - 73,337 90,085 2026 2027 2028 - 1,794,400 6,106,800 17.01 103,853 103,853 28,996 28,996 74,857 164,943 2027 2028 2029 - 5,990,705 12,097,505 17.01 205,732 205,732 28,996 28,996 176,736 341,679 2028 2029 2030 - 5,705,433 17,802,938 17.01 302,760 302,760 28,996 179,056 208,052 94,708 436,387 2029 2030 2031 - 3,423,260 21,226,198 17.01 360,977 360,977 28,996 231,463 103,852 364,311 (3,334) 433,053 2030 2031 2032 - - 21,226,198 17.01 360,977 360,977 28,996 231,463 103,852 364,311 (3,334) 429,719 2031 2032 2033 - - 21,226,198 17.01 360,977 360,977 28,996 231,463 103,852 364,311 (3,334) 426,384 2032 2033 2034 - - 21,226,198 17.01 360,977 360,977 28,996 231,463 103,852 364,311 (3,334) 423,050 2033 2034 2035 - - 21,226,198 17.01 360,977 360,977 231,463 103,852 335,315 25,662 448,712 2034 2035 2036 - - 21,226,198 17.01 360,977 360,977 231,463 103,852 335,315 25,662 474,374 2035 2036 2037 - - 21,226,198 17.01 360,977 360,977 231,463 103,852 335,315 25,662 500,035 2036 2037 2038 - - 21,226,198 17.01 360,977 360,977 231,463 103,852 335,315 25,662 525,697 2037 2038 2039 - - 21,226,198 17.01 360,977 360,977 231,463 103,852 335,315 25,662 551,359 2038 2039 2040 - - 21,226,198 17.01 360,977 360,977 231,463 103,852 335,315 25,662 577,021 2039 2040 2041 - - 21,226,198 17.01 360,977 360,977 231,463 103,852 335,315 25,662 602,682 2040 2041 2042 - - 21,226,198 17.01 360,977 360,977 231,463 103,852 335,315 25,662 628,344 2041 2042 2043 - - 21,226,198 17.01 360,977 360,977 231,463 103,852 335,315 25,662 654,006 2042 2043 2044 - - 21,226,198 17.01 360,977 360,977 231,463 103,852 335,315 25,662 679,667 2043 2044 2045 - - 21,226,198 17.01 360,977 360,977 231,463 103,852 335,315 25,662 705,329 REVENUE EXPENSES BALANCES To: Finance Committee From: Matt Wolf, City Administrator Date: September 16, 2026 Subject: Long-Term Water Improvements Background On June 9, 2025, the Common Council adopted Resolution 35-25 approving the CBS Squared, Inc. Water Engineering Report. The resolution authorized submittal of the plan to the Wisconsin Department of Natural Resources and applications for Safe Drinking Water Loan Program for Well #4 and other funding. It also supported Alternative 1 as the preferred approach capital model for future design, funding, and DNR approval (see alternative 1 map attached). Alternative 1 calls for treatment at existing Well #4. The report also evaluated long-term nitrate trends and treatment options at a future Well #5. The table below has Well #4 treatment as the first major project and includes a Well #5 test well and a treated Well #5 as future source-capacity projects. Future Water Improvements Item Estimated Year Cost Well #4 Treatment Addition 2027 $4,475,000* Well #5 Test Well 2028 $125,000 Water Main Looping/Redundancy 2028 $770,000 Rydeen Road Extension 2028 $355,650 Court Street Water Main Replacement 2029 $473,250 Well #5 with Treatment 2030 $5,320,000* Meter Replacement #1 2030 $150,000 Meter Replacement #2 2031 $150,000 Meter Replacement #3 2032 $150,000 Meter Replacement #4 2033 $150,000 Water Tower in Great Rivers 2035 $3,590,000 *This is the full cost, however financial modelling assumes only 30% funding from the water utility due to 70% funding coming from the Wisconsin DNR Safe Drinking Water Loan Program. Discussion Well Treatment Funding The costs for treatment at both Well #4 and #5 depends on a 70% principal-forgiveness assumption for to treat for PFAS through the Safe Drinking Water Loan Program. Principal forgiveness functions like a grant because that portion of an eligible loan does not have to be repaid. The remaining 30% would remain a City responsibility. Treatment Project Project Cost Estimate 70% P. F. 30% City Share Well #4 Treatment Addition $4,475,000 $3,132,500 $1,342,500 Well #5 with Treatment $5,320,000 $3,724,000 $1,596,000 Projected Water Fund Balances Below is a table that outlines the improvements in the water utility. The fund balance begins at $1,841,757 and adds annual cash generated by the utility. The projected ending balance reflects balance minus the capital improvements. The cumulative resources column shows the starting balance plus annual additions before deducting projects. Values are planning estimates, which assume a general 3% annual growth in revenue by taking simplified rate increases starting in 2028. Operational expenses were also annually adjusted based on historical expenses by category. One item to note in this table is that the Well #5 treatment project assumes the water utility will be responsible for $1,596,000, representing 30% of the estimated project cost. Funding this share will require the City to complete another full rate case study to establish water utility rates sufficient to support the improvements. This estimate also assumes that the City will receive a 70% principal forgiveness through the Safe Drinking Water Loan Program. If the City receives less than 70% principal forgiveness, the water utility’s share of the project will increase. The City must also determine how to address the projected deficit associated with constructing a new water tower in 2035. Under the current projections, the project would result in a negative water utility balance of $384,091. A clearer financial picture will be modelled as we get closer the construction of the water tower. Current Balance: Annual Projected Revenues Water Fund Balance Year-End Culumative Cash - No Capital Costs 2026 $1,841,757 2027 $383, 367 $882,624 $2,225,124 Well #4 Treatment - 30% Cash Payment 2028 $411,479 $43,453 $2,636,603 Test Well #5, Water Main Looping, and Rydeen Road Extension 2029 $556,357 $126,560 $3,192,960 Court Street Main Replacement 2030 $559,313 $535,873 $3,752,273 Well #5 Treatment and Meter #1 Replacement 2031 $584,799 $970,672 $4,337,072 Meter #2 Replacement 2032 $610,877 $1,431,549 $4,947,949 Meter #3 Replacement 2033 $636,656 $1,918,205 $5,584,605 Meter #4 Replacement 2034 $632,187 $2,550,392 $6,216,792 2035 $655,517 -$384,091 $6,872,309 Water Tower Great Rivers 2036 $684,050 $299,959 $7,556,359 Proposed Water Improvements 2027 - 2035 Unknown Service Lines Another item not included in this long-term capital plan is the testing and identification of potential lead service lines. The City has more than 200 water service lines with unknown materials, as shown on the City’s GIS lead service line map: https://prescottwi.maps.arcgis.com/apps/webappviewer/index.html?id=dd3169d6d07949 1babec31cffd1b04dd In August, the Wisconsin DNR notified the City that funding is available to help communities identify service lines with unknown materials. This work would be completed in partnership with Jacobs Engineering at no cost to the water utility. Accordingly, the City has not included a cost estimate for this work and will reevaluate its funding needs after additional program information becomes available later this year. Recommendation 1. Confirm moving forward with the alternative #1 improvements as approved in Resolution 35-25. 2. Discuss the placement and location of Well #5 for drilling a test well in 2028. Attachments 1. Water Engineering Report – Alternative #1 W W W W W W WW W W W W W W W WW W W W DEXTER ST WALNUT ST NORTHERN LIGHTS DR ST CROIX ST EXISTINGWELL ηϰ 01VERT. SCALE:HORIZ. SCALE:DRAWN BY: PROJECT NO.CHECKED BY:DATE: SHEETREVISIONSENGINEERS - SURVEYORS - ARCHITECTS770 Technology WayChippewa Falls, WI 54729Phone: 715.861.5226www.cbssquaredinc.comDATE:DESCRIPTION:CDV2024.07.24JISPRESC24002WATER STUDYCITY OF PRESCOTT, WIALTERNATIVE 1 EXISTING WATER MAIN (TYP) &UTURE WTPAT WELL ηϰ &UTURE WELL η5 WELLHOUSE Θ WTP WATER MAIN LOOPOPTION ϭ WATER MAIN LOOP STH 35 DEXTER ST HILLSIDE DR PLEASANT DR ALTERNATE ϭ ENE&ITS͗·P&AS TREATMENT AT WELL ϰ·WELL 5 WITH ϭ͕ϬϬϬ GPM CAPACITY·ϭ͕ϬϬϬ GPM NITRATE TREATMENT AT WELL 5 (DEPENDING ON TESTWELL WATER YUALITY RESULTS)·LOOPING DISTRIUTION SYSTEM IN GREAT RIsERS NEIGHORHOOD·WATER TOWER IN GREAT RIsERS NEIGHORHOOD͕ EXISTINGWATER TOWER TO E DECOMMISSIONED WASHINGTON ST &UTURE WATER TOWER WATER MAIN LOOPOPTION Ϯ To: Mayor and Council From: Beth Lansing, Treasurer Date: September 14, 2026 Subject: 2027 Wages and Personnel Background As we work through the 2027 budget, I wanted to provide an overview of what we are proposing for employee wages and benefits and how those changes affect the budget. In 2022, the city adopted a five-step pay schedule. The purpose of the schedule was to provide a consistent way to establish starting wages and allow employees to move through the steps as they gain experience and meet the requirements of their position. This also keeps us competitive with surrounding like sized communities. Currently, all the steps are fully funded in the current budget except for the Public Works Foreman position. For 2027, the proposal is to continue using the current pay schedule and allow employees to move up a step when they are eligible. In addition to step movement, we are proposing a 3% COLA increase across the board for City employees. Police wages are handled separately because they are covered by a union agreement. The agreement provides for a 4% increase in 2027, which has been included in the budget. WRS rates increased from 7.20% to 7.25% for all employees who are not police officers and decreased from 14.8% to 14.54% for police officers. FICA rates remain steady at 7.65% Discussion The proposed wage increases result in the following additional costs: Fund 2027 Wage Increase WRS Increase FICA increase Total Increase General Fund $58,288.14 $4,983.83 $4,459.04 $67,731.01 Fire Department $1,761.45 $137.88 $134.75 $2,034.08 Library $9,838.42 $833.48 $752.64 $11,424.54 Water $19,411.36 $1,533.92 $1,484.97 $22,430.25 Sewer $15,531.09 $1,254.80 $1,188.13 $17,974.02 Storm Water $4,109.65 $329.61 $314.24 $4,463.50 Total $108,940.11 $9,073.52 $8,333.77 $126,057.38 The largest increase is in the General Fund at $67,731.01. Of that amount, $36,003.46 is related to Police wages and reflects the 4% increase required under the union agreement. The remaining General Fund increase reflects the 3% increase given to nonunion police officers, along with employees moving to the next step on the pay schedule. Benefits Health insurance is another area we need to consider as part of the 2027 budget. Our health insurance premiums are expected to increase by approximately 6% in 2027. While that is an increase in the premium rates, the actual impact on the City's budget is an overall decrease to the budget. We are seeing a decrease in health insurance costs in several departments of around $100,892.57. This is a result of employees choosing to opt out of the City's health insurance plan. We are also seeing younger employees enrolled in the City's plan, which generally results in lower premium costs than some of the coverage we have had in previous years. See graph below for a breakdown of the increase/decreases. Fund 2027 Decrease/Increase General Fund $(45,786.64) Library $1,025.41 Water $(24,440.33) Sewer $(24,440.33) Storm $(7,250.69) Total $(100,892.57) Recommendation Overall, I believe the proposed wage and benefit budget is a reasonable approach for 2027. This approach allows us to continue to provide competitive and consistent wages for our employees while still being mindful of the impact on the City's budget and taxpayers. Staff recommends including the proposed wage increases, step movement, and anticipated benefit costs in the 2027 budget. To: Mayor and Council From: Beth Lansing, Treasurer Date: September 14, 2026 Subject: 256 Front Street Background The former tenant has moved out of 256 Front Street. With the property now vacant, the City needs to begin considering the long-term use of the property. The property is currently zoned C-1 Commercial but has historically been used as a single-family, two-bedroom residence. As a result, the residential use is considered a legal nonconforming use. This memo outlines three potential options for Council consideration: 1. Start to use the property as a short-term rental; 2. Continue the property as a long-term rental; or 3. Sell the property for commercial use and return it to the tax roll. The financial figures included below are preliminary estimates based on discussions we had with a real estate professional and should be considered estimates for purposes of comparing the options. Additional analysis, including legal and zoning review, would be necessary before pursuing any option. Discussion Option 1: Short Term Rental From a financial standpoint, a short-term rental appears to be the most profitable option. The City has identified a local business owner who would be willing to manage the property on the City's behalf. Having a third party manage the property could reduce the amount of day-to-day involvement required from City staff while allowing the City to retain ownership of the property. Based on preliminary estimates, the property could generate approximately $40,000 in net annual revenue as a short-term rental. This estimate is subject to actual occupancy, rental rates, management costs, utilities, maintenance, repairs, furnishings, insurance, taxes or fees, and other operating expenses. Before proceeding, however, there are important legal and regulatory questions that would need to be addressed. Legal Considerations 1. The City Attorney is currently looking over this option and will be advising whether the City itself has the legal authority to own and operate a short-term rental property as a municipal activity. 2. If the City cannot directly operate the property as a short-term rental, another potential structure would be to lease the property to a private business or other qualified operator, with that party responsible for operating the property as a short-term rental. Under this structure the lease would be for 80% of the monthly income minus operational expenses. Option 2: Long Term Rental The second option would be to continue using the property as a traditional long-term residential rental. This option would provide the City with a relatively stable source of revenue while generally requiring less ongoing management and operational involvement than a short- term rental. Based on preliminary estimates, the property could generate approximately $16,800 in net annual revenue as a long-term rental. The primary advantages of this option include: 1. Relatively predictable rental income; 2. Lower turnover and management demands than a short-term rental; 3. Less frequent cleaning and maintenance between occupants; 4. Continued City ownership of the property; and 5. Preservation of the City's ability to reconsider the property's future use at a later date. While the projected revenue is substantially lower than the short-term rental option, this alternative may provide a simpler and more predictable operating arrangement. Option 3: Sale for Commercial Use The third option would be to sell the property to a private party for commercial development or another permitted commercial use. Selling the property may appear to be the most straightforward option. A sale would provide the City with a one-time source of revenue, eliminate the City's ongoing responsibility for the property, and return the property to the private tax roll. A private commercial use could also potentially contribute to the City's downtown by bringing a new business, service, or other active use to the property. Parking and other considerations should be evaluated before determining that a commercial sale is the preferred option. 1. Parking Considerations: a. The property is located within the C-1 Commercial District, which encompasses the City's historic downtown area. Under the City's current zoning regulations, commercial development in this district does not require off-street parking b. This is an important consideration because 256 Front Street is immediately adjacent to the boat launch and Jacques Park, where public parking is already limited c. A commercial use could potentially generate additional customer and employee parking demand and place additional pressure on public parking that is currently intended to serve downtown visitors, the boat launch, and Jacques Park d. Depending on the type of commercial use ultimately proposed, the City could therefore be faced with a situation in which the property generates economic activity but also increases demand for limited public parking resources 2. Other Considerations: a. The property's current market value b. Potential commercial uses that would be appropriate for the location c. Whether the City should establish conditions or development expectations as part of a sale d. Whether selling the property without restrictions could result in a use that creates parking, traffic, noise, or other concerns e. The potential annual property tax revenue generated once the property returns to the tax roll f. The one-time proceeds from the sale compared with the potential long- term rental income g. Whether the City has any future strategic reason to retain control of the property because of its location along the riverfront. Potential Use of Revenue If the short-term rental option is determined to be legally permissible, Council could consider establishing a special revenue fund dedicated to Downtown and Riverfront Development. Under this concept, net revenue generated from the property could be placed into the special revenue fund and used for eligible maintenance, repairs, improvements, beautification, or other projects benefiting the City's downtown and riverfront areas. This would allow the property to generate an ongoing revenue stream while also directing the financial benefit back toward the areas surrounding the property. Recommendations At this time, staff recommends that Council consider the three options and provide direction regarding which alternatives should be investigated further. If Council is interested in retaining the property, the next step would be to obtain a legal opinion regarding the City's ability to operate or lease the property for short-term rental purposes. If Council is interested in selling the property, staff could obtain a current property valuation and further evaluate potential commercial uses and the associated parking implications.