Marathon City looks at $5M debt issuance

By Kevin O’Brien

When the village of Marathon City bought its street sweeper in 1999, the average price of gas was $1.19 per gallon, Facebook was five years away from being invented, and none of the kids currently enrolled in local schools had even been born.

Last week Wednesday, members of the village board sat looking at the 26-year-old piece of machinery, wondering how long it will be before it has finally swept its last street.

“Every week we put in a gallon of antifreeze and a gallon of oil,” said Chris Trice, the village’s streets superintendent.

So far this year, this village has spent $9,500 to repair and maintain the sweeper.

Replacing the sweeper – which could cost as much as $368,00 if the village buys new – is one of several big-ticket items the village would like to address as part of a two-year capital improvement plan (CIP) that has been under discussion for the past few months.

Village trustees went from street sweepers to spreadsheets at their June 4 meeting, starting with a tour of the village garage followed by a presentation by financial advisor Peter Meidal of Ehlers, Inc. Meidal walked officials through a proposal to refinance the village’s existing debt and free up cash for several projects and a street sweeper.

The bottom line was a proposed $5.3 million promissory note, which would cover nearly $1.3 million in CIP expenses between now and 2027 and refinance five previous debts equalling roughly $4 million. With all of the information trustees were asked to take in at last week’s meeting, they did not take any action. Instead, they decided to discuss the proposal again at a special meeting on June 19 before voting on it at their July 2 regular board meeting.

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“I personally need more time and more spreadsheets,” said trustee Mark Ahrens, half-jokingly.

If the bond issue is approved, the village would be obligated to pay back a little over $7 million over the next 20 years, which includes $1.8 million in total interest, according to estimates from Ehlers.

Since the village was already looking to borrow for current and upcoming projects, Meidal said it’s a good opportunity for trustees to look at what the bond market has to offer in terms of lower rates and longer payback periods for existing debt.

Until the date of the bond sale, which is tentatively scheduled for Aug. 7, Meidal said the terms of the general obligation promissory note can be changed.

“None of this is set in stone,” he said. “We can still kind of mess around with the numbers a little bit and make it work.”

Village administrator Steve Cherek said one of the goals is to keep the village’s annual debt payments roughly the same as they are now, about $300,000 on the property tax levy. Another goal is to free up about $120,000 per year in the general fund to pay for annual road maintenance so the village doesn’t have to continually borrow more.

In addition to replacing the street sweeper, the borrowed money will be used to reconstruct Market Street, from 4th to 8th, in 2027, which will include $120,000 in water main replacements. About $260,000 in bond proceeds is also slated to go toward the ballpark project, which is scheduled to be completed by the end of this month.

The utility commission has also talked about reinforcing the village’s clay sewer lines using a process called cured-in-place pipe lining, at an estimated cost of over $670,000. Trustees spent some time talking about how to maximize the village’s dollars on the relining project, which could extend the life of the lines by as much as 50 years.

Cherek said the key is to get the relining done before the clay pipes collapse, which would drastically increase the village’s cost because it would require digging out the old pipes and replacing them. He also noted that the cost per lineal foot for relining the pipes decreases as more feet of pipe are done, so it’s in the village’s best interest to get as much done as possible in one project.

Utility operator Ken Bloom said the biggest problem areas in the village are between Fourth and Eighth Street, from East Street all the way to Pine Street. The village relined a couple blocks of pipes about 10 years ago for $30 per lineal foot, a price that has now increased to $40 per foot, he noted.

Other street projects included in the twoyear CIP include a culvert replacement on Community Circle, and the resurfacing of Oak Street, from Fourth to Fifth, and Sonnentag Road, from Pine Street to the village’s west boundary. The CIP also lists projects that have already been started or approved, including the new ballpark, replacement of the flooring at the post office and the new sewer line at Veterans Park.

Street sweeper options

Board members looked at three options for replacing the sweeper. The cheapest option would be to buy a 10-year-old used machine for $120,000 with an estimated five years left on its useful lifespan. Another used option would be to buy a six-year-old sweeper for $175,000, with nine years of estimated life span left.

Cherek said his preference was to buy a new demo sweeper for $368,000, which would come with a two-year warranty on parts and last an estimated 15 years. No warranties would be offered on either of the used options, he noted.

Trustee Keith Paul said he agrees with Cherek about buying new so the village doesn’t have to spend so much time and money on fixing it. No recommendation was made by the full board, however.

After replacing the sweeper, Cherek said the village can look at replacing its 1996 International plow/dump truck during the next two-year CIP cycle. It, too, has reached the end of its operational lifespan and frequently breaks down, spending just as much time being repaired as it does being operated, according to the village.

“There’s no metal left to rust,” Trice joked during the board’s tour of the village garage.

Other business

■ The board approved a conditional use permit for MacMillan Innovations, allowing the business to build a 40-by-40 foot storage building next to its commercial building at 607 Maratech Ave. The permit was issued with the condition that the storage building conform to the village’s design covenants for the business park, with the west-facing facade matching the commercial building.

Owner Chad MacMillan told the board that he plans on getting rid of a shed and a shipping container on the property and storing his equipment inside the new building.

■ During his monthly administrator’s report, Cherek said work on the new ballpark and on the adjacent walking trail is progressing nicely, with village workers helping to fix base lines on the infields, plant a berm on the property and install a culvert. The basketball and pickleball courts are slated to be blacktopped soon, he noted. “I’m quite pleased with the project,” he said.

■ Cherek told the board that replacing a failed sewer line at Veterans Memorial Park cost a total of $41,391, with at least some of the cost to be covered by donations from organizations who use the park.

■ The board officially accepted the 2024 Compliance Maintenance Annual Report, which is basically a report card for the village’s wastewater treatment facilities. Cherek said the newly upgraded plant scored very well, earning A grades in all categories.

■ The board approved the hiring of Zachary Witberler as a volunteer firefighter.

■ The board renewed all of the village’s liquor and tobacco licenses for the next year and approved operator’s licenses for Ben Leffel at Home Bar & Grill and Madisyn Lang at Marathon City Sports Center.

■ After meeting in closed session to discuss the American Legion’s user agreement for Veterans Park, the board voted to accept a $10,000 donation from the Legion in exchange for using the park. The money will be used to help pay for the sewer line replacement.

FROM LAST CENTURY - Marathon City village administrator Steve Cherek speaks to village trustees and employees last Wednesday about the village’s 26-year-old street sweeper, which is slated for replacement as part of a two-year capital improvement plan the board is being asked to approve.

STAFF PHOTO/KEVIN O’BRIEN