Committee-of-the-Whole Agenda Packet - 6:00 PM

City of Oconomowoc Committee-Of-The-Whole Tuesday, May 5, 2026 - 6:00 PM City Hall - Council Chambers 174 E. Wisconsin Ave. Oconomowoc, WI 53066 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/Presentations - 2027 Budget Priorities and Strategic Plan Update 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 1 MEMORANDUM FINANCE DEPARTMENT Date: May 5, 2026 To: Mayor and Common Council From: Mark Frye, City Administrator Steve Hatton, Finance Director Re: 2027 Budget Priorities Workshop RELATES TO THE STRATEGIC PLAN Strategic Goal - Goal V. Enhance the Effectiveness of City Government BACKGROUND On Tuesday, May 5, we start the budget process with our annual Budget Priorities and Strategic Plan updates. The Department Heads have gone through the 2025/2026 Strategic Plan and provided status updates for each item. ADDITIONAL ANALYSIS At our May 5 meeting, Department heads will review their upcoming budget priorities with the Council. This is an opportunity for departments to communicate their upcoming budget items with you, and for you to give feedback. The Strategic Plan Status update handout is attached. Please open the bookmarks’ view (tabs at the bottom of the page labeled Cover and 1-5) when reviewing this document. The plan is sorted into the five goal areas, and status updates are provided for each item. The second attachment is the Strategic Plan Workbook. This excel file is for your use. There is a separate tab for each Goal area. Each goal shows the current plan strategies that Staff is working on. If an item is crossed out, it means that it is complete. At the bottom of each sheet there is an area for Department comments. Departments added items here for your consideration to include in the 2026/2027 plan. Below each section is an area for your comments and ideas. We will spend the second budget priorities Committee of the Whole meeting on May 19 discussing this workbook and revising the upcoming plan. RECOMMENDATION This process is the beginning of constructing the overall budget, giving us a chance to discuss budget priorities with the Council and more importantly, for the Council to give staff their direction for budget priorities and to provide feedback to the departments. Getting us all on the same page now saves us time and effort during the budget review process this fall. 2 1 MEMORANDUM FINANCE DEPARTMENT Date: May 5, 2026 To: Mayor and Committee of the Whole From: Steve Hatton, Director of Finance and Administrative Services Re: Finance Department 2027 Budget Priorities RELATES TO THE STRATEGIC PLAN Strategic Goal: Enhance the Effectiveness of Our City Government BUDGET PRIORITY 2027 budget priorities:  Staffing: We are currently adequately staffed to meet departmental goals. Four members within the Finance team are new to their roles in the past 12 months. 2027 focus centers around training, refining/documenting processes, and enhancing reporting capabilities.  Technology: We have successfully implemented modern software within the past several years to support finance, agenda management and permitting/licensing to meet our needs. Each platform requires maintenance and ongoing staff effort to fully realize the efficiencies of the software. For 2027, we are exploring how to leverage AI technology to deliver efficiencies and enhanced performance. FINANCIAL IMPACT Two items will be brough forward for consideration during the 2027 budget process. 1. Financial reporting: we would like to obtain consulting support from our system vendors to modify our system configuration to enable and deliver monthly budgeting and enhanced variance reporting. This enhanced functionality will provide better controls and visibility to operating and capital project performance. Consulting support would be a non-recurring investment. 2. Artificial Intelligence (AI) tools. Evaluate opportunities for AI to improve efficiency or enhance services to residents. Value-add potential will differ by department. Considerations include value- add, AI platform suitability, data security, and staff training needs. Licensing would be a recurring expense. No additional operating funding requests are anticipated aside from wage/benefit impact. 3 1 MEMORANDUM HUMAN RESOURCES DEPARTMENT Date: May 5, 2026 To: Mayor and Committee of the Whole From: Tony Posnik, Director of Human Resources Re: Human Resources 2027 Budget Priorities RELATES TO THE STRATEGIC PLAN Strategic Goal: Enhance the Effectiveness of Our City Government BUDGET PRIORITY Our priorities for 2027 center on maintaining operational excellence and maximizing the efficiency of our current resources:  Operational Stability: We are currently adequately staffed and equipped to meet all departmental goals. Our priority is to continue delivering high-level support without increasing budget.  Technological Sufficiency: We have successfully implemented modern software and digital tools that remain effective for our needs. For 2027, we require only standard maintenance of these platforms and tools rather than new capital investments. We will continue to work with ETF on their new automated benefit enrollment tools.  Resource Optimization: Our focus will remain on the strategic use of already-allocated funds to ensure all "status quo" operations—including compliance, employee support, and administrative functions—are handled effectively. We will continue to monitor wages and benefits to ensure we continue to attract, motivate, and retain employees; this includes making city-wide COLA recommendations to ensure wages remain competitive and minimize turnover. FINANCIAL IMPACT For the Human Resources Department, our 2027 request reflects a net-zero increase over our current spending. Since our needs are administrative rather than driven by large capital projects, we’ve been able to budget appropriately within our existing means. 4 1 MEMORANDUM CITY CLERK Date: May 5, 2026 To: Mayor and Committee of the Whole From: Gina Kozlik, City Clerk Re: City Clerk 2027 Budget Priorities RELATES TO THE STRATEGIC PLAN Strategic Goals: BUDGET PRIORITY Material related to the City Clerk department’s 2027 budget priorities will be distributed on May 5th. FINANCIAL IMPACT Evaluated through the 2027 Operating/Capital Budget process 5 1 MEMORANDUM POLICE DEPARMENT Date: May 5, 2026 To: Mayor and Committee of the Whole From: Chief James Pfister Re: Police Department’s 2027 Budget Priorities RELATES TO THE STRATEGIC PLAN Strategic Goal: Enhance effectiveness and transparency through optimized staffing and external funding to upgrade camera systems and improve open records redaction efficiency. BUDGET PRIORITY 1. 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. Last year the police department 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 2026 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 $137,000 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 one new full-time officer position for 2027. 2. Grant Writing for Body and Dash Camera Program As the current contract for Motorola for body and dash cameras expires in 2027, proactively pursuing grant funding is essential to ensure seamless continuation and enhancement of the department’s officer safety and accountability initiatives. The Bureau of Justice Assistance (BJA) Body-Worn Camera (BWC) Policy and Implementation Program presents a prime funding opportunity, offering up to $2,000,000 per category across three focus areas: system expansion, policy development, and digital evidence management. We aim to offset the costs of hardware expansion via the program’s 50/50 matching funds for BWC’s and secure non-matching grant support for our digital evidence management infrastructure, ultimately minimizing the financial burden on the city. Police Grant Writing, led by former law enforcement officer and federal grant reviewer Evan Sorg, has a proven 92% success rate in securing funding for law enforcement technology and equipment. Their comprehensive service, priced at $5,000 per grant application, includes a free resubmission if initially 6 2 unsuccessful, ensuring maximum return on investment. Prioritizing this expenditure now will position the department to secure critical funding, modernize infrastructure, and maintain public trust through transparent, technologically supported policing. 3. Upgrade squad and body camera video to the latest technology As previously noted, the department’s current body-worn camera system is set to expire in 2027. To enhance compatibility and streamline evidence sharing within Waukesha County and the Waukesha County District Attorney’s Office, the department is proposing a transition from Motorola Solutions to Axon Enterprise, Inc. The proposed plan includes the acquisition of 40 body-worn cameras and 11 squad cameras. The Basic Plan carries an estimated annual cost of $60,000, with a total projected cost of $319,000 over a five-year term. This package includes integrated redaction software to improve efficiency in fulfilling open records requests. Additionally, a one-day onsite training session will be required at a cost of $8,000. FINANCIAL IMPACT Evaluated through the 2027 Operating/Capital Budget process 7 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 Below are the budget priorities for the Western Lakes Fire District for budget year 2027. 1. Centralized Administrative Headquarters, Public Safety Training Facilities, Maintenance, and Emergency Operations Center: The top priority for 2027 is the purchase or construction of a Centralized Administrative Headquarters and Training Facility. This facility represents a transformative investment in the region’s safety and preparedness infrastructure. By co-locating essential emergency services, training facilities, and community risk-reduction initiatives, this project provides a critical public benefit that enhances the resiliency and response capabilities of the community. a. Administrative Headquarters: Integrating leadership and administrative functions will foster collaboration, enhance team dynamics, and increase operational efficiency. Co-locating leadership allows for faster decision-making and more efficient administrative workflows. b. Regional Training Center: This facility will function as a crucial hub for Fire, Emergency Medical Services (EMS), and Law Enforcement agencies within the District. A potential expansion of the facility could involve a partnership with Waukesha County Technical College (WCTC), thereby offering advanced simulation environments and dedicated classrooms designed to support comprehensive and high-quality training programs. c. Emergency Operations Center (EOC): A multi-jurisdictional EOC will serve as a fortified "nerve center" to coordinate responses during large-scale public safety incidents or natural disasters. d. Apparatus Repairs Center: Centralizing fleet maintenance for specialized emergency vehicles will improve the efficiency of apparatus repairs, reduce downtime, and extend the lifespan of expensive public assets. 2. Future Fire Station in the North West Coverage Area: The second priority is the implementation of recommendations for a future fire station in the northwest coverage area, as recommended by the McMahon Facilities Needs Assessment and Impact Fee Study. As various municipalities undergo growth and development, it is essential to strategically plan for the future. Relocating or adding stations based on this assessment ensures appropriate response times and optimal services. The use of impact fees indicates that 85% of the new facility will be paid for by new construction through the collection of impact fees. Memorandum TO: FIRE BOARD FROM: BRADLEY R. BOWEN, FIRE CHIEF/EMERGENCY MANAGEMENT DIRECTOR SUBJECT: 2027 BUDGET PRIORITIES DATE: MONDAY, APRIL 21, 2025 CC: MUNICIPAL OFFICIALS 8 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 3. Addressing of Properties: During emergency responses conducted by EMS, Fire, and Law Enforcement, time is of the essence. It is essential for all municipalities to enforce ordinances pertaining to the visibility and proper posting of property addresses. 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 ordinances. The municipalities that require consideration for implementing these standards include the City of Oconomowoc, the Village of Dousman, and the Town of Ottawa. 4. Strategic Capital Improvement Plan Implementation The fourth priority is the continued implementation and support of the District's strategic capital improvement plan to ensure the facility, equipment, and apparatus replacement plan remains on schedule. This process includes assessing the utilization and service life of each piece of equipment and apparatus in accordance with national, state, and industry standards. As municipalities evolve and service expectations change, the requirements for equipment and apparatus must also adapt accordingly to grow with the increasing demand for services. 5. Municipal Fire Code and Ordinances Update: The fifth priority involves an essential update to the municipal fire code and related ordinances. The existing code is outdated and requires a comprehensive review and revision. This update aims to align the fire codes with the current building codes, thereby ensuring consistency between the two in relation to remodeling and new construction projects. By updating the fire codes, we will enhance the safety and quality of life within our community, as it ensures that construction and life safety projects adhere to contemporary standards. Moreover, the revised fire code will contribute to maintaining or improving the Insurance Services Office (ISO) ratings of the District. 6. Staffing Levels and Professional Development The sixth priority is maintaining adequate staffing levels to ensure an effective response force as the community grows and evolves, while also ensuring the continuous training, education, and professional development of personnel. Funding must be allocated to ensure that the District maintains adequate daily staffing levels to meet the needs of the municipalities it serves. Establishing professional development and training programs provides ongoing knowledge and skills enhancement, which contributes to employee retention and effective succession planning. 9 1 MEMORANDUM PUBLIC WORKS Date: May 5, 2026 To: Mayor and Committee of the Whole From: Jason Herzog, Department of Public Works Re: DPW 2027 Budget Priorities BUDGET PRIORITIES In preparation of the upcoming 2027 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. Major street replacement projects. Update the 10-year replacement plan a. 2027 - Construction i. Lisbon Rd ii. Lake Dr iii. Second St b. 2028 - Design i. Second St ii. Local neighborhoods 2. Village Green Park Improvements a. Complete park project 3. Install signals at Summit Ave (Hwy 67) and Olympia Fields Dr a. Complete design in 2026 4. City Hall Space Needs Study a. Evaluate the Clerks office space, and old PD station 10 1 MEMORANDUM OCONOMOWOC PUBLIC LIBRARY Date: May 5, 2026 To: Mayor and Committee of the Whole From: Jen Puccini, Library Director Re: Library 2027 Budget Priorities RELATES TO THE STRATEGIC PLAN Strategic Goal: To expand our Digital and Print Collection and Replace our Public Computers BUDGET PRIORITY 1. Expand our Digital and Print Collection Given the rising patron demand for our digital resources, we must reallocate additional funding to this area. Consequently, we require an expansion of our overall collection budget. 2. Replacing our Public Computers Public computer access is a vital service for our community, yet our ten current workstations are over a decade old and struggling to keep pace with demand. Replacing these computers is essential to maintaining the quality of service our patrons rely on and ensuring our library continues to provide equitable access to technology. FINANCIAL IMPACT Evaluated through the 2027 Operating/Capital Budget process. Estimated impact by item: 1. Collection Expansion: $10,000 2. Computer Hardware: $9,000 11 1 MEMORANDUM PARKS RECREATION AND FORESTRY Date: May 5, 2026 To: Mayor and Committee of the Whole From: Eric Boettcher, Director of Parks, Recreation and Forestry Re: Parks, Recreation and Forestry 2027 Budget Priorities RELATES TO THE STRATEGIC PLAN IV. Improve Our Quality-of-Life Assets BUDGET PRIORITY 1. Plan and develop Northeast Regional Park- restrooms, playground, athletic facilities, lighting, other park amenities. The city’s current park system lacks sufficient 90-foot baseball fields for middle and high school players, with only one such field available at Roosevelt Park. To address this need, the plan proposes adding appropriately sized fields at Northeast Park. These new fields would also be designed to support additional softball and baseball age groups. The overall park development would further include amenities such as a regional playground, open green space, and expanded parking. 2. Plan and develop safe connections in the Northeast Corner of Oconomowoc bike and pedestrian connection over Highway 67. Providing a safe crossing at the intersection of Lake Drive and Highway 67 is a critical component of the City’s Bike and Pedestrian Plan. City staff are continuing to advance planning efforts for this future connection. An application has been submitted to the WisDOT Transportation Alternatives Program (TAP) for the 2026–2031 funding cycle to support project construction. Additional funding requests will be pursued through other state and federal programs, including Safe Routes to School (SRTS), to help fully fund the project. FINANCIAL IMPACT Evaluated through the 2027 Operating/Capital Budget process 12 1 MEMORANDUM PLANNING DEPARTMENT Date: May 5, 2026 To: Mayor and Committee of the Whole From: Jason Gallo, City Planner Re: Planning Department 2027 Budget Priorities RELATES TO THE STRATEGIC PLAN Strategic Goal: Focus on Community Growth / Enhance Effectiveness of Govt. BUDGET PRIORITY The Planning department’s operating costs are dominated by staff and benefit costs. The 2027 Budget will include a change in staffing to include a full-time Associate Planner. Previously, the supporting role included duties supporting and funded by Tourism. No other significant changes are anticipated for the 2027 operating budget. For the 2027-2031 Capital Plan, the Planning department will include a request for continued development of our Geographic Information System (GIS) tools to improve access to and the utility of the City’s digital records. FINANCIAL IMPACT Evaluated through the 2027 Operating/Capital Budget process 13 1 MEMORANDUM ECONOMIC DEVELOPMENT & TOURISM Date: May 5, 2026 To: Mayor and Committee of the Whole From: Bob Duffy, Economic Development & Tourism Director Re: Economic Development and Tourism 2027 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 community to promote all Oconomowoc has to offer, the growth areas available for new and redevelopment opportunity, as well as attract innovation & technology-based businesses to secure our future. These are the primary elements the Economic Development & Tourism Department intends to focus on in 2027 and beyond. Priority #1 Implement E. WI Ave 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 it’s 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 attract on the state and regional stage for various development opportunities, growth of businesses, and the 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. 14 2 Oconomowoc can position the future well with the facilitation & promotion of several key development areas:  Re-investment and revitalization of the Olde Highlander recreation complex;  Commercial and mixed-use expansion opportunities at Olympia Fields;  Regional commercial real estate investments into the Pabst Farms area o Wingspan Mixed-use development o Harvest at Pabst Farms to implement original Pabst Farms Town Centre Vision Through this key development the City can realize continued tax base expansion, business attraction, and employment opportunities for our community. It is anticipated any funds needed could be achieved through the budget process line items. 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+ SF HSA building, as well as the four Wingspan Innovation & Incubation buildings totaling 320,000 SF. 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 & Madison and direct access to the strength of our state’s bio-health and personalized medicine industry 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 industry collaborations, 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. 15 1 MEMORANDUM WASTEWATER\OWPP Date: May 5, 2026 To: Mayor and Committee of the Whole From: Tim Reel, Wastewater Operations Manager Re: Wastewater\OWPP 2027 Budget Priorities RELATES TO THE STRATEGIC PLAN Strategic Goal: Improve and Maintain Our Infrastructure/Facilities TOP BUDGET PRIORITIES 1. Treatment Facility Update – Evaluation and Preliminary Design engineering services will continue from 2026 into 2027. Alternative selections and project limit decisions will assist in development of the scope for the Final Design engineering step which we will transition into during 2027. As a general rule, design services/construction management contracts are approximately 15% of the construction costs. We anticipate engineering expenditures for 2027 will be approximately $2,000,000. 2. Collection System Communications Improvement – In 2026 we have experienced a large increase in poor or no communication being available at specific sites. Additionally, we have experienced several instances where over 10 of our approximately 30 sites have been offline. This condition presents too much risk for our customers and the environment. We are working with vendors and electrical integrators to arrive at a better, more reliable solution. The solution is not a “one size fits all” as the complexity of the sites vary from a simple flow meter to a lift station with multiple pumps and backup power. Our goal, through pilots and evaluation, is to present a more reliable yet cost effective solution. 3. Sanitary Sewer Replacement and Rehabilitation – As part of the 2027 Street Program, the Utility will continue its ongoing goal to maintain and improve upon our buried infrastructure assets. We will entertain replacement vs. CIPP options should the condition of the main and associated sanitary laterals warrant a more robust long-term reinvestment. FINANCIAL IMPACT Evaluated through the 2027 Operating/Capital Budget process 16 1 MEMORANDUM ELECTRIC, WATER, & FLEET UTILITY Date: May 5, 2026 To: Mayor and Committee of the Whole From: Kevin Kaari, Utility Manager Re: Electric and Water Utilities and Fleet: 2027 Budget Priorities RELATES TO THE STRATEGIC PLAN Strategic Goal: I. IMPROVE & MAINTAIN EXISTING INFRASTRUCTURE BUDGET PRIORITY The following goals and objectives are important for the utilities and fleet department as the 2027 budgets are developed. 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. 1) Introduce the concept of “Smart Development” to assist with new electric and water infrastructure planning for large new developments. a. New infrastructure has to have a solid backbone from which to serve new customers. This has to be planned for ahead of the development so that infrastructure isn’t designed in small pieces. 2) Conversion of overhead power lines to underground. a. The city has 97% of its primary feeders and distribution lines buried underground. Each year we develop projects to convert overhead areas to underground lines. 3) Planned proactive replacement of our most important electrical assets. a. Lead times for critical substation equipment are now 2 to 3 years due to supply chain pressures related to Data Center development. Planning for replacement of key equipment must be done years in advance. 4) Cable and Equipment Replacement Program - 2027 a. OU continues to replace underground cable and equipment that is nearing its end-of-life or has had reliability issues. 5) Lead Service Lateral Replacement Program - 2027 a. Since Oconomowoc does not qualify for State funding for private-side lateral replacement, other alternatives are required to push customers to change their laterals in conjunction with our streets projects. In 2025, only 10% of the customers in street project areas replaced their lead laterals even though we provide low-interest loans or the 5-year tax roll repayment programs to do so. FINANCIAL IMPACT Evaluated through the 2027 Operating/Capital Budget process 17 2026-2027 Strategic Plan update and Budget Priorities NAME: COUNCIL NOTES * USE THIS WITH THE STRATEGIC PLAN UPDATE HANDOUT TO KEEP TRACK OF NOTES AND IDEAS 18 Strategic Goal Objective Strategies/Tactics I.Provide a Safe and Secure Community Staff Owners: Utility Director, Police Chief, WWTP Director, Fire Chief. Future State:  Public safety is paramount in all of the City’s services A. Maintain Quality of Police Services 1. Providing Rifle plates to officers to enhance their chances of surviving bullet and blunt force trauma. 2. Police Staffing Request for one full-time officer to be added. 3. Providing Ballistic Helmets to officers as a vital part of personal protective equipment improving safety in high-risk situations. B. Provide Quality Fire and EMS Services 1 Evaluate Fire District future facilities needs  2 Explore additional opportunities to improve ISO rating 3 Research federal/state grant opportunities for staffing and capital equipment 4 Implement Professional Development Program 5 Centralize and Consolidate WLFD Management Team 6 Investigate mandatory addressing of properties C.Enhance Programs for Citizen Safety 1. Crosswalk safety. Downtown area crossings D. Provide Reliable, High Quality, and Affordable Power 1. Convert overhead power lines to underground. Coordinate with street, water and sewer replacements planning and funding in annual budget. 2. Underground cable and equipment replacement 3. Evaluate peak feeder and substation loading - annually 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 electrical service to our customers. E. Provide and Foster Safe and Clean Water 1. Continue implementation of the Oconomowoc Watershed Protection Program (OWPP) 2. Implement sampling to monitor chloride levels 3. Evaluate and implement annually State grant funding for private side lead water laterals replacements and adjust Utility program as needed. Continue to replace Utility side lead laterals in conjunction with street program 4. Implement an overall water quality improvement plan for the water reservoir at wells 4 and 6. 5. Evaluate and address iron filtration options at city well sites. Department Notes: PD: Add A.4. Grant Writing for Body and Dash Camera Program PD: Add A.5. Upgrade Squad and body camera video to the latest technology Electr:Add D.5. "Smart Development": Create an electric utility comprehensive plan for our largest projects with the developers. Water: Add E.6. "Smart Development": Create a water utility comprehensive plan for our largest projects with the developers. Council Notes: 19 Strategic Goal Objective Strategies/Tactics II.Improve and Maintain Our Infrastructure / Facilities Staff Owners: Public Works Director, Utilities Director, WWTP Director Future State: Oconomowoc has a safe and effective infrastructure that provides a framework for optimal community enjoyment A. Maintain Our Existing Infrastructure 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 d.WWTP – parcel/infrastructure/facilities   e.Fleet – inventory/develop funding replacement cycle 2. Accelerate / enhance street improvement/maintenance plan to include water main replacement and Sewer Main rehab program.  3. Replace existing blowers with NEROS blowers in 2025 4. Assess and prioritize repairs or replacement of lift station pumps and control panels. 5. Develop plan process for extensive design effort for facilities upgrade at WWTP. B. Plan and Complete Road Extensions 1.Lake Bluff Drive extension construction. 2. Wisconsin Avenue Improvements in conjunction with the DOT 3.Lapham Street Bridge construction. 4.Oconomowoc Parkway extension – This project needs involvement from Waukesha County C. Identify Future New Projects, Timeline for Implementation and Funding Mechanism 1.Complete City Hall space study and remodel - focusing on Clerks area. 2.Evaluate and plan for the future facility needs of the Electric and Water Utility. 3. Using the WWTP Facility Planning Report, review and prioritize recommendations based on need and economics. Evaluate the Wastewater Facility preliminary design findings and begin a final design effort in anticipation of a future construction project. 4. Complete evaluation of parking needs. 5. Construction of Outside Waste Receiving Station for Septic and Holding waste Department Notes: Council Notes: 20 Strategic Goal Objective Strategies/Tactics III.Focus on Community  Growth A.Research and Plan for City Development 1. Explore options and plan for E Wisconsin Ave Corridor  a. Find funding resources for implementation or RFP. Research/Investigate future TIF District 2. Promote the St. Paul/E WI redevelopment area. 3. Promote downtown development. 4. Continue working on the development of the NE area. 5. Develop options and housing diversity (starter homes, attainable housing, mix ratio) finding regional solutions. Staff Owners: Economic Development Director, Planning Director 6. Explore providing zoning incentives to developers who provide attainable housing.  7. Explore grant funding opportunities or TIF district incentives for businesses.   8. Utilize/expand the major façade program funding plan. 9. Attraction/Collaboration through Wingspan & Tech Hub partnerships Future State:  Oconomowoc is recognized as a premier community in Lake Country by fostering an entrepreneurial spirit and tourism destination, developing and retaining a diverse mix of employees and employment opportunities, and revitalizing catalytic development areas B.Plan for Future Growth Areas for Regional Development 1. Encourage development within 67/I94 Corridor – promote corridor not individual areas  a. Encourage Pabst Farms area development. - Innovation & Technology Hub, The Harvest & Marcus sites b. Facilitate and promote development of the Olympia Fields Proactively promote for business attraction.  2. Maintain existing and evaluate future opportunities for private-public partnerships, where appropriate.  C. Plan for Future Transportation 1. Report on Evaluate options available for commuter and workforce transportation – internal connections roadway/trails/paths and on-road bike routes/passenger rail 2. Explore connecting the Nature Hill School with Meadowview School with pathway. 3. Improve alternative transportation options (electric vehicle, ride sharing, bike share, etc.) D.Create Tourism Destination Initiatives 1. Enhance historic property inventory and education of historic regulations. 2. Explore creative ideas for Tourism funds. 3. Plan and Coordinate Milestone Community Celebrations - moved to IV.A.4 - Quality of Life Assets Department Notes PZ/ED: Add a C #4: Assist in implemnting I-94 West Expansion plans PZ/ED: Coordinate finalized plan for Rockwell Development site PZ/ED: Explore & collaborate to attract regional sports facility at Olde Highlander PZ/ED: Review Isthmus district zoning regulations Council Notes: 21 Strategic Goal Objective Strategies/Tactics IV. Improve Our Quality of Life Assets Staff Owners: Parks Director, Library Director Future State: Community members are proud of the natural, cultural and recreational assets of the City A.Plan and Implement Quality of Life Assets and Community Amenities 1. Evaluate the Champion Fields 5-year Improvement Plan – Compare option of moving ball fields to NE Region Park. 2. Plan and develop Northeast Regional Park- restrooms, playground, athletic facilities, lighting, other park amenities 3. Evaluate Village Green enhancements and public restrooms in downtown. 4. Plan and Coordinate Community Celebrations (moved from III.D) B. Review and Update Parks, Recreation and Forestry Department Plans 1. Research and evaluate alternative schedules for parks mowing. 2. Prioritize connectivity throughout the City by updating the Bicycle and Pedestrian Plan to connect neighborhoods to schools, businesses and parks 3. Plan and develop safe connection in the Northeast Corner of Oconomowoc bike and pedestrian connection over Highway 67 4. Chapman Park Barn Park Planning and Implementation - Addition of Restroom at trailhead 5. Chapman park additional barn restoration for additional facility use 6. Street Tree planning and planting project for new development. C. Evaluate Future Community Needs and Projects 1. Optimize Library facility and location to meet current and future community needs i. Library Space Needs Analysis: Evaluate identified needs and review options for remodel/expansion 2. Work towards combining the reference and circulation desks to create a single service point. 3. Assess underutilized park property and other city property. 4. Analyze future senior services needs 5. Assess future expansion of native plantings in passive park areas Department Notes: PZ/ED: C #4 -Add: New Senior Center location? Maintain & enhance Silver Streak? PZ/ED: Sidewalk extension needed on Lisbon Rd from Oakwood to Lapham PZ/ED: Investigate Bike Share for City residents PZ/ED: Collaborate in implementing Lake Country Trail west connection PZ/ED: B #2 Add: Implement Village Crossing trail around stormwater basin PZ/ED: Valley Road sidewalks to connect from YMCA to Old School House road Council Notes: 22 Strategic Goal Objective Strategies/Tactics V.Enhance the effectiveness of our city government A.Update City Ordinances & Elections 1.Implement Badger Books system for Elections 2.Update Subdivision and Platting Ordinances 3.Update the Sign Ordinance 4. Evaluate Polling Locations for size and efficiency, consider new options 5. Add Election Day staffing to include absentee tabulators B.Attract, Motivate and Retain City Employees 1.Review and recommend updates to the City wage and benefit plan to remain competitive. C.Improve Our Technology 1.Maintain IT infrastructure and network efficiencies. 2.Conduct IT security and quality audits annually. D.Improve the Effectiveness of Our Meetings 1.Continue to develop paperless options for meeting participants. E.Maintain/Improve the City’s Financial Sustainability 1.Prepare/fleet and equipment long term replacement plan and policies to fund a reserve. 2.Prepare streets maintenance and replacement plan with sustainable funding options. 3. Analyze remaining available Impact Fees as the City is built out. F.Improve Our Internal Communication 1. Formalizing Council Policies, directives ( ie Construction Management / Engineering, Selection/voting of officers) Future State: Our City is high- performing, efficient, effective and known for its service excellence. G.Improve Our External Communication 1.Continue to improve use of online/social media communication  2.Improve City Website and access to Citizens for online services and information gathering. 3. Clerk Customer Service Counter improvements H.Increase Partnerships 1.Strengthen partnership with Waukesha County 2.Strengthen partnerships with Oconomowoc School District. Department Notes: PZ/ED: Investigate expansion opportunities in Jefferson County? PZ/ED: Continued investments into Geographic Information System (GIS) for City digital records PZ/ED: Collaborative discussions with Villages of Summit & Lac La Belle, and Town of Oconomowoc parcels IT: Evaluate alternatives for Endpoint protection. IT: Contract penetration testing on our network/systems to validate preventative measures. IT: Evaluate server strategy at completion of existing server warranties (for 2028 Budget) IT: Investigate efficiency opportunites of using AI in local services HR: Work with Employee Trust Funds (State of Wisconsin) to automate employee’s benefit enrollment at hire and during the annual enrollment period. Council Notes: 23 Council Budget Priorities Priorit y Department Funding Source? Description 24 25 Strategic Goal I. Provide a Safe and Secure Community 26 Strategic Goal I. Provide a Safe and Secure Community Objective A. Maintain Quality of Police Services 27 I.A Maintain Quality of Police Services 2026 Status Update: 1. Providing Rifle plates to officers to enhance their chances of surviving bullet and blunt force trauma. Complete? Yes Retain in 2026/2027 Plan? No Status update: Rifle plates have been purchased and are in use. 2. Police Staffing Request for one full-time officer to be added. Complete? No Retain in 2026/2027 Plan? Yes Status update: Request funds to be transferred from Police Support Specialist accounts (1 full-time and all part-time) and all water patrol accounts. This funding would fall short by $9,000.00 for 1 new officer. 3. Providing Ballistic Helmets to officers as a vital part of personal protective equipment improving safety in high-risk situations. Complete? Yes Retain in 2026/2027 Plan? No Status update: Ballistic helmets have been purchased, assigned, and fully outfitted to meet individual officer needs. 28 Strategic Goal I. Provide a Safe and Secure Community Objective B. Provide Quality Fire and EMS Services 29 I.B Provide Quality Fire and EMS Services: 1. Evaluate Fire District future facility needs. Complete? Yes Retain in 2026/2027 Plan? Yes Status update: Working on implementation of impact fees, and begin process of station location and design. 2. Explore additional opportunities to improve ISO rating. Complete? No Retain in 2026/2027 Plan? Yes Status update: Municipal Fire Code & Ordinance Update, Plan Review Process, continue to ensure WLFD staffing, training, equipment, and apparatus plans coincide with development. Completed items – Station Alerting Project, Increased Training Budget. Completed Community Risk Assessment and Standards of Cover. 3. Research federal/state grant opportunities for staffing and capital equipment. Complete? No Retain in 2026/2027 Plan? Yes Status update: Received WI DNR Grant, and various small business grants. Applied for various grants including WI Radio, EMS Equipment, Community Risk Reduction, and others. 4. Implement Professional Development Program. Complete? Yes Retain in 2026/2027 Plan? No Status update: Implementation is complete. Program will be ongoing. 5. Centralize and Consolidate WLFD Management Team. Complete? No Retain in 2026/2027 Plan? Yes Status update: Deficiency noted during Facility Needs Assessment. 15,000 square foot deficiency noted, and 5,000 square feet for future growth projected. Evaluating options of current buildings in community or new construction. 6. Investigate mandatory addressing of properties. Complete? No Retain in 2026/2027 Plan? Yes Status update: Developing proposal for implementation, and cost analysis. 30 Strategic Goal I. Provide a Safe and Secure Community Objective C. Enhance Programs for Citizen Safety 31 I.C Enhance Programs for Citizen Safety: 1. Investigate options for addressing safety and visibility for downtown pedestrian crosswalks Complete? Yes Retain in 2026/2027 Plan? No Status update: Evaluating new crosswalks and safety equipment. It will be installed in Spring ’26. 32 Strategic Goal I. Provide a Safe and Secure Community Objective D. Provide Reliable, High Quality and Affordable Power 33 I.D Provide Reliable, High Quality, and Affordable Power: 1. Convert overhead power lines to underground – 95% complete – coordinate with street, water and sewer replacements planning and funding in annual budget. Complete? No Retain in 2026/2027 Plan? Yes Status update: In 2026, we undergrounded overhead primary lines as part of our 4kv to 25kV conversion along Wisconsin Ave near Silver Lake Auto and Vic’s Carpet. We will continue to chip away at the final 5% of our system that remains overhead. If the old Silgan Container area develops along 2nd Street, that could be our next area to underground. For the next strategic plan update we could update the percentage complete to 97%. 2. Underground Cable and Equipment Replacement. Complete? No Retain in 2026/2027 Plan? Yes Status update: In 2026, we replaced a large area of deteriorated underground cable in the Begg’s Isle area. In addition, we replaced a switch fuse unit in Pabst Farms due to its poor condition. This program is an ongoing program that will remain in place every year. Each year we evaluate the next areas on our electrical system that we will address. 3. Evaluate Peak feeder and substation loading times annually Complete? No Retain in 2026/2027 Plan? Yes Status update: In 2026, added a new feeder CB67 to feed the Pabst Farms area and Roundy’s. We are also changing the configuration of the feeders in the area to handle the new load growth associated with new development. This type of analysis occurs every year. 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 electrical service to our customers. Complete? No Retain in 2026/2027 Plan? Yes Status update: In 2026, we ordered a new Vista Switchgear for Summit SS. We are also looking to replace T8, at Cooney SS. This transformer replacement is in our LTFP for replacement by 2029 needs to be ordered in 2026 to get it by 2029. We have other switch fuse units identified to replace in the upcoming years. In the new strategic plan, we are changing the long lead-time timeframe (75 to 90 weeks) to 2 to 3 years. 34 Strategic Goal I. Provide a Safe and Secure Community Objective E. Provide and Foster Safe and Clean Water 35 I.E Provide and Foster Safe and Clean Water: 1. Continue implementation of the Oconomowoc Watershed Protection Program (OWPP) Complete? Ongoing Retain in 2026/2027 Plan? Yes Status update: : Over the past year, the Oconomowoc Watershed Protection Program (OWPP) has made measurable progress in improving water quality across the watershed through targeted monitoring, restoration, and community engagement. OWPP has also advanced 62 long-term projects covering 572 acres, along with 1,289 acres of controlled drainage, resulting in an estimated 2,600 pounds of phosphorus reductions. Through agricultural cost-share efforts in 2025, the program supported the implementation of 1,750 acres of cover crops and approximately 770 acres of additional conservation practices. As is demonstrated by these examples the value of the program continues to meet expectations as a creative alternative to phosphorus permit compliance. 2. Implement sampling to monitor residential chloride levels. Complete? Ongoing Retain in 2026/2027 Plan? No Status update: Specific sampling points, targeting residential use, were identified and sampled to better assess background levels. This sampling efforts will continue. Averaged results from three sites over a period of approximately one month was 654 mg/L. Our permit limit varies from 510 mg/L (May thru October) to 525 mg/L (November thru April). Per our Source Reduction Measures (SRM) Plan with the WDNR we have annual goals to meet for chloride compliance. Chloride progress will be tracked in a new Strategic Plan item. 3. Evaluate and implement annually State grant funding for private side lead water laterals replacements and adjust Utility program as needed and continue to replace Utility side lead laterals in conjunction with street program. Complete? No Retain in 2026/2027 Plan? Yes Status update: Oconomowoc does not qualify for state funding of private-side lateral assistance. In 2025, we replaced 39 public-side lead laterals along Silver Lake St, McDowell Ct and Walnut St in conjunction with the street projects. All customers with a private-side lead lateral within the projects were contacted multiple times to arrange to have their water lateral done too. We take the time to explain the programs we have to help them afford the $5,000 cost. However, only 4 customers took advantage of the program. With 599 private- side lead laterals remaining in our city, it is obvious that our customers need a bigger push to make the correct decision to eliminate their private-side lead laterals. Possible answers may include help from the city itself. 4. Implement an overall water quality improvement plan for the water reservoir at wells 4 and 6. Complete? No Retain in 2026/2027 Plan? Yes 36 Status update: We paused on this plan in 2025/2026 and focused our attention on the construction of the new Well 8. In In 2027, the water utility will be doing a comprehensive Water System Supply Study which will include looking at all of our water infrastructure to determine the best course of action to improve water quality. 5. Evaluate and address iron filtration options at city well sites. Complete? No Retain in 2026/2027 Plan? Yes Status update: In 2026, the new Well 8 came online. This well has our first iron filter. In 2026, we will gain knowledge and experience with this new filter. In 2027, the water utility will be doing a comprehensive Water System Supply Study. This will include looking at all of our water infrastructure to determine the best course of action to see if other well sites could benefit from an iron filter. 37 Strategic Goal II. Improve and Maintain Our Infrastructure and Facilities II. IMPROVE AND MAINTAIN OUR INFRASTRUCTURE / FACILITIES Staff Owners: Public Works Director, Utilities Director, WWTP Director Future State: Oconomowoc has a safe and effective infrastructure that provides a framework for optimal community enjoyment. 38 Strategic Goal II. Improve our Infrastructure and Facilities Objective A. Maintain our Existing Structure 39 II.A Maintain Our Existing Structure: 1. Develop a city inventory of major assets and projected replacement schedule to include City Parcels/streets, Water Utility, Electric Utility, WWTP and Fleet: Complete? See each item Retain in 2026/2027 Plan? See each item Status update: a. City Parcels/Streets Status update: DPW tracks the length of streets, their condition and plans maintenance, resurfacing or reconstruction based on condition, age, and project cost. Planning work continues to find the right balance between condition and cost impact on residents. (Ongoing, retain for 2027) b. Water Utility Status Update: The water utility’s GIS system has been developed and is now being updated as projects are completed. The water inventory project portion of the project, including service line inventory and water meters has been completed. Utility staff will maintain the water GIS system. (Complete, remove for 2027) c. Electric Status update: Due to past mapping systems issues and asset management practices, the electric utility continues to sort out discrepancies found in the accuracy of old infrastructure records transferred into OpenPoint, our new asset database program. We now project completion of our asset database by the end of 2026. (To be complete in 2026, remove for 2027) d. WWTP Status update: The inventory aspect of this goal is quite robust and is continually being refined. Establishing a matrix for rating of infrastructure will be a significant task involving multiple staff and departments. A good example of where this could become more applicable would be in the prioritization of the annual Streets Maintenance Program where all Utility needs could be evaluated and weighted to establish a priority ranking for projects. We are in the beginning stages of populating data into a maintenance software program which will allow us to better track the age, condition and maintenance of existing equipment. (Ongoing, retain for 2027) e. Fleet Status update: The fleet scoring system is in place and is being used to assist in the LTFP replacement of assets. In 2026, fleet is still working on fully implementing its new Fuel Master asset management system with Elements to assist in automating preventative maintenance services for all fleet equipment and vehicles. This will be completed by the end of 2026. No need for funding in 2027. (To be complete in 2026, remove for 2027) 2. Accelerate / enhance street improvement/maintenance plan to include water main replacement program. Complete? No Retain in 2026/2027 Plan? Yes Status update: Investment in annual street improvements/maintenance has been increased since 2018. Over this period, the City has added > $1.0 million of debt each year in addition to Levy as well as fund balance to improve the condition of local streets. Condition of the 40 road base and water main age/breaks are considered when total street reconstruction projects are planned. Water main replacement has averaged $1.57 million per year since 2018 and $2.5 million over the last three years. In recognition of the significant investment in Well #8, we are planning to limit water main replacement in the next several years of street projects to limit impact on rate payers. 3. Replace existing blowers with NEROS blowers in 2025 Complete? No Retain in 2026/2027 Plan? No Status update: As we gained more knowledge, through the Facility Planning effort, it became apparent that blower sizing, configuration, type and control strategies should be part of a more holistic evaluation during a preliminary design effort. 4. Assess and prioritize repairs or replacement of lift station pumps and control panels. Complete? No Retain in 2026/2027 Plan? No Status update: We have gathered a significant amount of information which needs to be evaluated to establish a clear prioritization which will help provide perspective on future budgetary needs. This item will be tracked as part of item 1d. in future strategic planning efforts. 5. Develop plan process for extensive design effort for facilities upgrade at WWTP. Complete? Yes Retain in 2026/2027 Plan? No Status update: A Request for Proposals (RFP) will be advertised in May of 2026 for Evaluation and Preliminary Design engineering services. This is the first step towards a Wastewater Facility upgrade. 41 Strategic Goal II. Improve our Infrastructure and Facilities Objective B. Plan and Complete Road Extensions 42 II.B Plan and Complete Road Extensions: 1. Lake Bluff Drive extension construction. Complete? In Progress Retain in 2026/2027 Plan? No Status update: Construction began in April of 2026 and expected to be completed during the summer of 2026. Work will include improvements to cross walks along existing corridor of Lake Bluff Dr. 2. Wisconsin Avenue Improvements in conjunction with the DOT Complete? In Progress Retain in 2026/2027 Plan? No Status update: Design and permit are complete. The work is scheduled late summer and fall of 2026. 3. Lapham Street Bridge construction. Complete? In Progress Retain in 2026/2027 Plan? No Status update: Construction is in progress, expected completion of early summer. 4. Oconomowoc Parkway extension – This project needs involvement from Waukesha County Complete? In Progress Retain in 2026/2027 Plan? Yes Status update: City council approved the possibility of this project into TID 7 for future consideration. 43 Strategic Goal II. Improve our Infrastructure and Facilities Objective C. Identify Future New Projects/Timeline/Funding 44 II.C Identify Future New Projects, Timeline for Implementation and Funding Mechanisms: 1. Complete City Hall space study and remodel - focusing on Clerks area. Complete? In progress Retain in 2026/2027 Plan? Yes Status update: Developing scope of work in 2026. 2. Evaluate and plan for the future facility needs of the Electric and Water Utility. Complete? No Retain in 2026/2027 Plan? Yes Status update: The future facility need of the Electric and Water Utility has moved out in time. The existing electric and water utility campus suits the current needs of the utility. Information gathering for a future utility building is ongoing but no longer fits the previous LTFP schedule. The future need will continue to be evaluated on a yearly basis but should be expected to push out until the need increases. 3. Using the WWTP Facility Planning Report, review and prioritize recommendations based on need and economics Complete? Yes Retain in 2026/2027 Plan? Yes Status update: The final Facility Plan was submitted to the WDNR for approval. In the interest of more clearly identifying project needs along with greater detail we are planning for an Evaluation and Preliminary Design Project with an engineering consultant. This would take us to a 10% design condition on specific topics of interest. The language associated with this item will be modified to read “Evaluate the Wastewater Facility preliminary design findings and begin a final design effort in anticipation of a future construction project.” This more appropriately reflects the work for 2027. 4. Complete evaluation of parking needs. Complete? In progress Retain in 2026/2027 Plan? Yes Status update: Developing scope of work in 2026. 5. Construction of Outside Waste Receiving Station for Septic and Holding waste Complete? Yes Retain in 2026/2027 Plan? No Status update: Placed in service in 2026. 45 Strategic Goal III. Focus on Community Growth III. FOCUS ON COMMUNITY GROWTH Staff Owners: Economic Development Director, Planning Director Future State: Oconomowoc is recognized as a premier community in Lake Country by fostering an entrepreneurial spirit and tourism destination, developing, and retaining a diverse mix of employees and employment opportunities, and revitalizing catalytic development areas. 46 Strategic Goal III. Focus on Community Growth Objective A. Research and Plan for City Development 47 III.A Research and Plan for City Development- 2026 Status Update: 1. Explore options and plans for the E Wisconsin Ave Corridor – find funding resources for implementation or RFP. Complete? No Retain in 2026/2027 Plan? Yes Status update: The City engaged the UWM Community Design Solutions group to develop a market-based neighborhood plan using the adopted zoning overlay district guidelines. Intent is to meet with property owners, incorporate into City Comprehensive Plan, investigate a TIF district, and share opportunities available with prospective developers. 2. Promote the St. Paul/E WI redevelopment area. Complete? No Retain in 2026/2027 Plan? Yes Status update: Staff has shared site with developers interested in redevelopment opportunities in Oconomowoc. Property owners have not been interested in selling, partnering, or collaborating with those interested in redevelopment. Property owners have shared a food truck court concept with City, however limited progress has been made toward implementation. The current proposal would not be the highest and best use of the property. 3. Promote downtown development. Complete? No Retain in 2026/2027 Plan? Yes Status update: Ongoing to encourage business, visitor, tourist, and resident attraction standpoint. Downtown has become a destination through the implementation of the Downtown Plan. The City adopted overlay zoning within the downtown area to encourage projects and redevelopment. 4. Continue working on the development of the NE area. Complete? No Retain in 2026/2027 Plan? Yes Status update: The City approved subdivision plans for Prairie Creek Ridge Addition #10 & #11which is the final phase on the corner of Hwy P & K. City staff worked with the developer and St. Matthews Church to implement the extension of Schumacher Street to the north. 5. Develop options and housing diversity (starter homes, attainable housing, mix ratio) finding regional solutions. Complete? No Retain in 2026/2027 Plan? Yes Status update: Staff is working on creative solutions to decrease the housing costs within the City. Single-family lots are being created on less than 10,000 SF, with zero side yard setback and shared walls (Olde Highlander) to reduced costs. Planning will continue to track housing stock and the mix of single-family to multi-family. The utilization of TIF #4 extension funds for affordable housing options for potential redevelopment along E. Wisconsin Avenue and/or 48 necessary utility extensions to the west to accommodate difficult to serve areas was not supported. 6. Explore providing zoning incentives to developers who provide attainable housing. Complete? No Retain in 2026/2027 Plan? Yes Status update: The City has granted Planned Development overlays to Arrowood Subdivision; Olde Highlander Subdivision; Olympia Fields mixed-use; and to allow residential use in commercial district for Wingspan / Pabst 59 development in Pabst Farms. Incentives included allowing residential use in commercial zoning, reduced lot sizes, reduced frontage requirements, reduced building setback, increased building heights, and other development incentives such as sidewalk on only one side of the street. 7. Explore grant funding opportunities or TIF district incentives for businesses. Complete? No Retain in 2026/2027 Plan? Yes Status update: Staff continues to investigate funding opportunities to assist in achieving goals, as well as public/private partnerships through TIF to invest in areas & infrastructure as a catalyst for tax base growth. 8. Utilize/expand the major façade program funding plan. Complete? No Retain in 2026/2027 Plan? Yes Status update: The City’s designated façade grant funds has an existing balance. There have been fewer applications for assistance. May want to consider increasing grant amount given the costs for materials and construction have risen since established. Created a major façade loan program in collaboration with Ixonia Bank. 9. Attraction/Collaboration through Wingspan & Tech Hub partnerships Complete? No Retain in 2026/2027 Plan? Yes Status update: The Wingspan Technology & Innovation development is Oconomowoc will become 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 & Madison and direct access to the strength of our state’s bio-health and personalized medicine industry can become a leveraged 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 industry collaborations, the City will facilitate the successful partnership to implement the Wingspan Innovation & Technology building availability for regional business location 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. It is City Staff’s belief 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. 49 Strategic Goal III. Focus on Community Growth Objective B. Plan for Future Growth Areas for Regional Development Olympia Fields Pabst Farms 50 III.B Plan for future Growth Areas for Regional Development Status Update: 1. Encourage development within 67/I94 Corridor-promote corridor not individual areas. a. Encourage Pabst Farms area Development. b. Facilitate and promote development of the Olympia Fields for business attraction. Complete? No Retain in 2026/2027 Plan? Yes Status update: a. Considerable development has been approved within the area. Since the announcement of the Wingspan & Costco developments there has been increased interest in sites and investment on Pabst Farms area parcels. Staff is currently working with Marcus Corporation related to site plans for their parcel, as well as the Cobalt group to master plan The Harvest at Pabst Farms. b. Commercial out lots have seen development projects related to Panera, Chipotle & First Watch. The proposed Elevate mixed – use building has not begun construction. The Olde Highlander area is thriving with diverse housing mix being constructed. The Social recreational/hospitality use is proceeding including ski hill redevelopment/reuse, and there are additional adjacent parcels with commercial development potential. 2. Maintain existing and evaluate future opportunities for private-public partnerships where appropriate. Complete? No Retain in 2026/2027 Plan? Yes Status update: Ongoing: City currently has 4 active TIF districts partnering related to infrastructure improvements and development investment. Continue to encourage entrepreneurship through Business Loan pool in collaboration with Bank Five Nine. The City is exploring public/private partnership opportunities related to library and seniors services. 51 Strategic Goal III. Focus on Community Growth Objective C. Plan for Future Transportation 52 III.C Plan for future Transportation Status Update: 1. Report on options available for commuter and workforce transportation – internal connections roadway/trails/paths and on-road bike routes. Complete? No Retain in 2026/2027 Plan? Yes Status update: City staff provided comments on WIDOT regional transportation plan to continue to identify Oconomowoc as a future rail stop should commuter rail become a reality. Collaborated with Waukesha County Center for Growth to host a workforce transportation solutions panel to share programs to be explored for local businesses. 2. Explore connecting the Nature Hill School with Meadowview School with pathway. Complete? No Retain in 2026/2027 Plan? Yes Status update: City staff is in the planning phase to create a connection across highway. Collaboration with the Waukesha County, WIDOT and others potential partners is in the process. In addition, staff are researching possible grant funding opportunities to support this connection to create a safe route for the community. 3. Improve alternative transportation options (electric vehicle, ride sharing, bike share, etc.) Complete? No Retain in 2026/2027 Plan? Yes Status update: Have shared Electric Utility information about vehicle charging station to local businesses and residents. The city had been contacted by bike share company with interest in implementing system in Oconomowoc, was not pursued given lack of support from some city departments. 53 Strategic Goal III. Focus on Community Growth Objective D. Create Tourism Destination 54 55 III.D Create Tourism Destination Initiatives Status Update: 1. Enhance historic property inventory and education of historic regulations. Complete? No Retain in 2026/2027 Plan? Yes Status update: In 2023 Planning Staff brought forward Section 17.705 of the Zoning Ordinance that created the Historic Preservation Commission. The Ordinance was adopted by the City Common Council on August 2, 2023. Since that time, no property owners have volunteered to designate their structure as a Local Historic Structure. Planning will continue to work on educating the Elected Officials and the Public regarding the Ordinance. 2. Explore creative ideas for Tourism funds. Complete? No Retain in 2026/2027 Plan? Yes Status update: Ongoing: City staff prepared a long-range forecast of expenditures for tourism funds which is providing funds for the DockHounds Oconomowoc Woof Wharf, transient boat piers, and art installations through the Toto Tour. Considerable Tourism dollars have been utilized for enhancements at Chapman Park for Trail Head restroom, the stabilization of the barn structure to ensure it remains standing, as well as the planting of a pollinator area to enhance the park. Will continue to explore more projects as community grows and additional needs arise. Implemented an augmented reality historic walking tour within Downtown and around Fowler Lake. 3. Plan and Coordinate Milestone Community Celebrations. Complete? Ongoing Retain in 2026/2027 Plan? Yes Status update: The Oz 85th anniversary and City’s 150th were successfully planned events by the Tourism and Community Development staff. Future celebrations are being coordinated by Parks City Events Coordinator, including implementing activities related to the 2026 250th anniversary of America. 56 Strategic Goal IV. Improve our Quality-of-Life Assets IV. IMPROVE OUR QUALITY-OF- LIFE ASSETS Staff Owners: Parks Director, Library Director Future State: Community members are proud of the natural, cultural, and recreational assets of the City. 57 Strategic Goal IV. Improve our Quality-of-Life Assets Objective A. Plan and Implement Quality of Live assets and Community Amenities Lac LaBelle Boat Launch 58 IV.A Plan and Implement Quality of Life Assets and Community Amenities Status Updates: 1. Evaluate the Champion Fields 5-year Improvement Plan – Compare option of moving ball fields to the NE Regional Park. Complete? No Retain in 2026/2027 Plan? Yes Status update: Champion fields 5-year improvement will be evaluated to conjunction with planning for NE Park Ball fields. The 1–5-year plan will involve updating champion field parking lot area, concession/restroom and other park upgrades while planning for future expansion at Northeast Park. This would allow for future expansion of utility building needs if so needed. 2. Plan and develop Northeast Regional Park- restrooms, playground, athletic facilities, lighting, other park amenities. Complete? No Retain in 2026/2027 Plan? Yes Status update: Planning continues for addition of baseball fields and additional park amenities for NE Park. Phase I included the addition of trail way, restroom/shelter and 20 pickleball courts which were completed from 2022-25. Planning for phase II will be for additional ballfields, playground and additional amenities. 3. Evaluate City Green enhancements and public restrooms in downtown Complete? No Retain in 2026/2027 Plan? Yes Status update: Village Green Park improvements are being designed in 2026. The goal is to have a project ready for bid for work to begin the fall of 2026. Council will need to determine how a restroom will fit into this project. Utility run for potential location would be part of initial park build. 4. Plan and Coordinate Community Celebrations Complete?No Retain in 2026/2027 Plan? Yes Status update: Ongoing. The Oz 85th anniversary and City’s 150th were successfully planned events by the Tourism and Community Development staff. The Parks City Events Coordinator was to be implementing activities related to the 250th anniversary of America 59 Strategic Goal IV. Improve our Quality-of-Life Assets Objective B. Review and Update Parks, Recreation and Forestry Department Plans 60 IV.B Review and Update Parks, Recreation and Forestry Department Plans Status Updates: 1. Research and evaluate alternative schedules for park and City Property mowing. Complete? No Retain in 2026/2027 Plan? Yes Status update: The additional of no mow areas along boulevards and passive park areas has allowed for reduction of mowing along certain areas of the city. These practices will be expanded over the next year to establish more areas throughout our park system to allow for future park expansions such as Northeast Park. 2. Prioritize connectivity throughout the City by updating the Bicycle and Pedestrian Plan to connect neighborhoods to schools, businesses and parks. Complete? No Retain in 2026/2027 Plan? Yes Status update: Addendums were added to the Bike and Pedestrian plan in 2024 and 2025 to expand connectivity for new developments. This included the development in the Northeast Southeast and Southwest areas of the community. These addendums allow for the current planning; however, an overall update of the plan will be needed to tie into the next revision of the Parks and Open Space Plan that runs through 2030. 3. Plan and develop safe connection in the Northeast Corner of Oconomowoc bike and pedestrian connection over Highway 67. Complete? No Retain in 2026/2027 Plan? Yes Status update: City staff continue to plan for this connection. Applications for additional funding for a variety of grants such as TAP, Safe Routes to School and others will be needed to complete this connection. 4. Chapman Park Barn Park Planning and Implementation - Addition of Restroom at trailhead Complete? To be completed in 2026 Retain in 2026/2027 Plan? No Status update: Chapman Park trailhead restroom is scheduled for completion by fall of 2026 with installation of the facility along the trailhead located at the end of east end of Oconomowoc Parkway. 5. Chapman Park additional barn restoration for additional facility use. Complete? No Retain in 2026/2027 Plan? Yes Status update: Chapman Barn located in Chapman Park had the initial roof and structure restored in early 2025. Additional funding will be needed to complete improvements to the surroundings of the building. Additional project will be needed to allow for full renovation of the structure. 61 6. Street Tree planning and planting project for new development. Complete? No Retain in 2026/2027 Plan? Yes Status update: As part of developers’ agreements, the City of Oconomowoc assesses a fee per linear foot of frontage for tree planting in new subdivisions, as outlined in Chapter 18.08 of the Municipal Code. With the large increase in developments over the past five years the parks department has contracted out the plantings for 2026 and will again for 2027 to keep pace with development. Park staff will continue to direct and maintain the planting of these trees. 62 Strategic Goal IV. Improve our Quality-of-Life Assets Objective C. Evaluate Future Community Needs and Projects 63 IV.C Evaluate Future Community Needs and Projects Status Updates: 1. Optimize Library facility and location to meet current and future community needs. i. Library Space Needs Analysis: Evaluate identified needs and review options for remodel/expansion Complete? Yes Retain in 2026/2027 Plan? Yes Status update: Completed 2. Work towards combining the reference and circulations desks to create a single service point. Complete? No Retain in 2026/2027 Plan? No Status update: Completed 3. Assess underutilized park property and other city property. Complete? No Retain in 2026/2027 Plan? Yes Status update: In 2026 staff will continue to evaluate current park properties to look at ways to reduce maintenance needs for these areas. Currently, native planting projects have been used to reduce mowing needs. Additional properties could be considered for this type of planting while assessing if other land areas may no longer be needed. 4. Analyze future senior services needs Complete? No Retain in 2026/2027 Plan? Yes Status update: Work ongoing 5. Assess future expansion of native plantings in passive park areas Complete? No Retain in 2026/2027 Plan? Yes Status update: Champion Park was a good prototype to see how native plantings work. Coordination with watershed staff have allowed additional areas to be planted. Current projects include shoreline areas along Rockwell Park and Hickory Wood Farms prairie restoration areas this past year. Future areas include Parkview Park area and expansion at existing areas mentioned. Coordination through Oconomowoc’s Parks Department, Tourism, Oconomowoc Watershed District and Western Lakes Fire department allow for these maintenance programs to be possible. 64 Strategic Plan V. Enhance the Effectiveness of our City Government V. ENHANCE THE EFFECTIVENESS OF OUR CITY GOVERNMENT Administration and Organizational Improvement Staff Owners: City Administrator Finance Director, Human Resources Director, City Clerk Future State: Our City is high-performing, efficient, effective, and known for its service excellence. 65 Strategic Goal V. Enhance the Effectiveness of our City Government Objective A. Update City Ordinances and Elections 66 V.A Update City Ordinances & Elections Status Updates: 1. Implement Badger Books system for Elections Complete? Retain in 2026/2027 Plan? Status update: 2. Update Subdivision and Platting Ordinances. Complete? No Retain in 2026/2027 Plan? Yes Status update: The existing subdivision ordinance (Chapter 18) was drafted in 1982. Planning staff anticipate working with various Departments internally to bring the existing ordinance up to today’s development standards. Staff anticipate working on this during 2026 and 2027. 3. Update the Sign Ordinance. Complete? No Retain in 2026/2027 Plan? Yes Status update: Due to a Court decision, the City is encouraged to amend the City’s Sign Ordinance. This has not been completed due to a variety of reasons, including the ambiguity in the published opinion of the Court. Staff feels changing the existing sign ordinance to meet the letter of the law will create confusion for the public. 4. Evaluate Polling locations for size and efficiency, consider new options. Complete? Retain in 2026/2027 Plan? Status update: 5. Add Election Day staffing to include absentee tabulators Complete? Retain in 2026/2027 Plan? Status update: 67 Strategic Goal V. Enhance the Effectiveness of our City Government Objective B. Attract Motivate and Retain City Employees 68 V.B Attract, Motivate and Retain City Employees Status Updates: 1. Review and recommend updates to the City wage and benefit plan to remain competitive. Complete? N Retain in 2026/2027 Plan? Y *Annual Review Status update: For 2025, the city implemented a 3% wage adjustment/cost-of-living increase, for non-union employees. For the Police union, an agreement was reached resulting in a signed contract through 2026. Additionally, the City updated the employee health insurance plan to include a $1,000 deductible, aiming to minimize premium increases, while introducing a Health Reimbursement Account (HRA) to maintain competitiveness. The HR department will continue to monitor wages and benefits for competitiveness in 2026. 69 Strategic Goal V. Enhance the Effectiveness of our City Government Objective C. Improve our Technology. 70 V.C Improve our Technology Status Updates: 1. Maintain IT infrastructure and network efficiencies. Complete? No, ongoing Retain in 2026/2027 Plan? Yes Status update: IT Staff constantly monitor and maintain the City network. IT Staff have implemented various protective measures including multi-factor authentication for network access; Virtual Private Network (VPN) tunneling for field/remote access; and ransomware protection. We maintain backup internet services to ensure we have connectivity if our fiber connection experiences issues. 2. Conduct IT security and quality audits annually. Complete? No, ongoing Retain in 2026/2027 Plan? Yes Status update: The City monitors network traffic, both inbound and outbound. Software deployed on computers is patched/updated routinely with assistance of monitoring software that alerts if updates are missing. Endpoint protection is in place with alternate options evaluated frequently. Staff attend cybersecurity training events frequently to keep current with changes in the environment. Cybersecurity training is in place for all city employees that is tested periodically, Most recently the City has implemented an email filtering solution to retain cyber insurance coverage. Penetration testing is being evaluated in 2027 to confirm effectiveness of protective measures. 71 Strategic Goal V. Enhance the Effectiveness of our City Government Objective D. Improve the Effectiveness of our City Meetings 72 V.D Improve the Effectiveness of our Meetings Status Updates: 1. Continue to develop paperless options for meeting participants. Complete? tbd Retain in 2026/2027 Plan? tbd Status update: 73 Strategic Goal V. Enhance the Effectiveness of our City Government Objective E. Maintain/Improve the City’s Financial Sustainability 74 V.E Maintain/Improve the City’s Financial Sustainability Status Updates: 1. Prepare/fleet and equipment long term replacement plan and policies to fund a reserve. Complete? No Retain in 2026/2027 Plan? Yes Status update: Fleet has developed a scoring system for assets to determine if we should continue to maintain assets versus replacement. Formalized replacement plan, policies and reserve development work ongoing. 2. Prepare streets maintenance and replacement plan with sustainable funding options. Complete? In progress Retain in 2026/2027 Plan? Yes Status update: Multiple efforts are being implemented to prolong the existing pavements and keep the streets safe to drive. The public works crews have changed the product used for patching that improves the durability of material used in potholes this past winter. The street maintenance program continues to grow to structurally replace failing sections throughout the City. There is currently about 2.5 miles of pavement being replaced this year. 3. Analyze remaining available Impact Fees as the City is built out. Complete? No Retain in 2026/2027 Plan? Yes Status update: Fire/EMS Impact Fee study complete and proposal to be brought to Council for consideration in Q2 2026. Monitoring of existing Impact Fees ongoing. Evaluation of remaining impact fee lifespan to be completed in 2027. 75 Strategic Goal V. Enhance the Effectiveness of our City Government Objective F. Improve our Internal Communications 76 V.F Improve our Internal Communication Status Updates: 1. Formalizing Council Policies, directives (ie Construction Management / Engineering, Selection/voting of officers) Complete? No Retain in 2026/2027 Plan? Yes Status update: Raised during 2025/2026 committee of Whole workshop. Planning and prioritization underway. 77 V.G Improve our External Communication Status Updates: 1. Continue to improve use of online/social media communication. Complete? No Retain in 2026/2027 Plan? Yes Status update: Ongoing: City has full-time staff through Communications and Market specialist to share consistent information and broaden the types of information to the community. We have increased our reach through Instagram. In 2026 we have identified the need to update the City website given accessibility changes and enhancements the City is interested in implementing related to meeting video, agenda information & minutes 2. Improve City Website and access to Citizens for online services and information gathering. Complete? No Retain in 2026/2027 Plan? Yes Status update: Ongoing: Staff implemented Permitting and Licensing software. Now operational, the software will allow the public to submit online applications for permits and licenses through the City Website as well as online payment. The City could explore utilization for additional department activities through the platform. (ie: pet licensing, short term rental licensing, etc) 3. Clerk Customer Service Counter improvements Complete? No Retain in 2026/2027 Plan? No Status update: Planning underway with quotes being sought. Will bring to Council for approval in July and planned completion in 2026. 78 Strategic Goal V. Enhance the Effectiveness of our City Government Objective H. Increase Partnerships 79 V.H Increase Partnerships Status Updates: 1. Strengthen partnership with Waukesha County Complete? No Retain in 2026/2027 Plan? Yes Status update: Re-allocate budget support for County wide municipal economic development consortium as a collaboration through the Waukesha County Center for Growth. The Center manages the GROW Fund which is a revolving loan fund supporting business expansion and workforce housing in Waukesha County. Given the Tech Hub initiatives, the City should again engage to maximize the opportunity to gain investment leads from an innovation and technology-based business attraction standpoint and may be an opportunity to provide access to financial resources for attraction purposes. The City should engage with Waukesha County to facilitate discussions to incorporate pedestrian amenities along key County Highways. The ability to incorporate sidewalks to connect residents in the vicinity of CTH Z (Silver Lake St) to the Lake Country Trail, as well as area residents by CTH B (Valley Rd) from the YMCA, Marketplace at Pabst Farms, etc. would offer greater community connectivity. 2. Strengthen partnership with Oconomowoc School District Complete? Yes Retain in 2026/2027 Plan? No Status update: Staff continue to meet with OASD for development updates, any concerns around school properties, strategic planning and budgets. Both sides feel the meetings are productive. Staff engage with students through Digital Communications, Marketing and hospitality courses. Superintendent and Economic Development meet annually with real estate community to educate and share updates to encourage resident attraction efforts. 80