WILLMAR
— The
Willmar City Council
on Monday approved a 10-year capital improvement plan for street and utilities improvements, which proposes spending approximately $12 million per year to repair and maintain the city streets.
City engineer Jared Voge of Bolton & Menk presented the topic, noting that the city of Willmar and
Willmar Municipal Utilities
have a memorandum of agreement in place regarding water mains and hydrants that requires the 10-year plan.
As the city pursues street reconstruction projects, Willmar Municipal Utilities repairs or replaces water mains and hydrants, and it needs to be able to budget for those projects.
“This plan that you have before you this evening is a collaborative effort among public works, engineering and Willmar Municipal Utilities staff,” Voge said, noting the plan is for years 2024 through 2033, and includes a 4% inflation factor for rising construction costs during that time frame.
Voge explained that the plan would be brought in front of the council at least annually to evaluate the projects in terms of costs and what that means for the tax levy as well as water rates.
He noted that Willmar Municipal Utilities is currently budgeting for approximately $1.25 million in annual costs for the projects, but that the plan identifies approximately $1.5 million in costs annually for WMU.
“With all of this, there will be some rate updates, tax updates, things of that nature, to be worked out with financial consultant Baker Tilly and this plan will — it’s not the last time you’re going to see this plan, I guess is what I’m saying,” Voge said. “There will be requests for potential rate increases, there will be requests to evaluate the tax levy, to be sure we put together the overall financing and the funding for the plan, but that would be before you numerous times with each project each year.”
Willmar Municipal Utilities General Manager John Harren noted that Voge provided a nice, high-level overview of what the capital improvement plan will cost financially, but the costs are about $250,000 to $300,000 more than what Willmar Municipal Utilities has budgeted. He said the council will be hearing more from WMU in the fall regarding rates so it has funds to cover the projects.
“I would just like to again say this is a very aggressive approach that the council is taking,” said Councilor Julie Asmus. “But the public has said they want the streets fixed and I think this is a great plan. This is the first time that we have had a 10-year capital improvement plan to really map it out, and the streets and the map are clear and it’s good direction.”
