Marathon City looks to borrow more money

By Kevin O’Brien

Marathon City will have to borrow another half-million dollars later this year in order to cover the costs of its new park facilities while also freeing up money for street repairs and other big-ticket items.

Village administrator Steve Cherek spoke to the village board last week about the need to transfer $475,000 out of the village’s general fund and into an account designated for park expenses. This money initially came in as land sale proceeds, donations and grants for the new ballpark on the east end of the village, but the funds were never transferred.

Cherek said the intended transfer, which came before his time as administrator, was likely not done because it would have left the general fund in financial stress due to the borrowing demands placed on it by the village’s two tax-incremental districts (TIDs).

“The TIDs were for years not self-funding,” he said. “They were draining the general fund balance.”

TIDs are used to pay upfront for infrastructure expansions, such as the village’s new industrial park north of STH 29, with the costs eventually being paid back by the taxes on new developments, such as the future Menzner Hardwoods plant in the industrial park.

In July of last year, the board voted to borrow $2.8 million on a short-term basis in order to pay for work being done at the new ballpark and to complete a project on Hemlock Street and a sidewalk/walking trail on Fourth Street. That bond is one of eight general fund loans the village is currently paying off.

The balance owed on the $2.8 million bond is expected to drop to about $390,000

See MARATHON/ page 3

Steve Cherek Marathon

Continued from page 1

once the village receives anticipated grant payments.

At the start of this year, the village’s general fund had about $700,000 in it, according to the 2024 audit. Based on the recommendation of its financial advisors, Cherek said the village should have an amount equal to 23 to 30 percent of its annual expenses sitting in its fund balance. This means the village needs somewhere between $420,000 and $550,000 in its general fund to be considered financially healthy.

After subtracting the amount needed for TID projects over the next few years, the projected general fund balance drops from $700,000 down to $460,000, according to Cherek’s numbers.

Due to those funding obligations, Cherek said financial advisors at Ehlers and Associates are not comfortable with the village moving more than $15,000 out of the general fund. Instead, he said they are recommending the board issue new bonds to cover the $475,000.

“So, we would be replacing the fund balance transfer with longterm debt,” he said. “Otherwise, they feel we’ll be putting ourselves at risk in our general fund.”

Also, based on the current status of donations and grants, Cherek said he expects a roughly $31,000 shortfall on the ballpark project, so the village will need to borrow a total of $506,340 over 20 years and refinance another $593,161 in previous street-related debt over 15 years.

The village has about $316,800 budgeted for outstanding general fund debt payments this year, and if it does not refinance its loan from last year, that debt obligation would jump to over $800,000 in 2026. Under the refinancing options presented by Cherek, the debt service would drop by $54,000 starting next year.

Cherek has also been working with department heads on a capital improvement plan that includes the possible replacement of the village’s streetsweeper and one of its plow trucks, both of which have required major repairs recently. The village also has some bigger street projects on the horizon, including a reconstruction of STH 107 next year that will require a $97,000 local match. Fifth Street is also in “really bad condition,” he said, and will cost about $700,000 to redo.

“So, we’re coming into some really high expenses,” he said.

Trustee Kevin Sorenson questioned whether the village should continue borrowing more money to do projects when it’s still paying off existing debt.

“Maybe, at some point, we just wait a couple of years before we do any more on the streets,” he said. “Let’s just get by with the way they are.”

Trustee Barb Parlier wanted to know if the board should consider raising taxes to pay for some of the larger expenses.

“If we need a new sweeper or a new plow truck, can’t we pass some of that on?” she asked.

Cherek said the board does have the ability to increase its debt levy, which is currently at $50,000 but could be raised to nearly $280,000 per year without going to referendum.

Trustee Jeff Lawrence said he’d rather see what more can be done with general obligation debt than to ask residents to pay more in taxes.

“I’m guessing somewhere in our history the board has promised that taxes would come down after it got paid off, and it never does,” he said. “Taxes never go down.”

Cherek said he will present the board with a list of capital improvements at its next meeting in April and ask trustees to narrow it down. He said he’s also working with Ehlers on a bonding proposal to be voted on in July.

Trustee Keith Paul said the village will likely never completely eliminate its debt, but the board should set some type of limit based on the revenue it takes in every year.

“We should be working judiciously to bring that down,” he said. “Maybe forgo some stuff. Maybe there is a need to put some on taxes. We also need to be working in good faith to pull those numbers down.”

Other business

■ Based on the recommendation of the planning commission, the board approved a conditional use permit for Menzner Hard to build a new facility north of STH 29. The permit will allow the company to incorporate a dust collection system, similar to the one it has at its current facility, without a silencer as long as noise levels do not exceed 74 decibels at any point along the property line. The permit will be reviewed every five years to ensure compliance.

■ Trustees discussed noise complaints coming from those living next to an indoor batting cage facility at the corner of Fourth and Pine Street. Cherek said the building, a former feed mill, is zoned commercial/ industrial and the village ordinance does not have a specific noise limit. The neighbors told the board that the loudest noises are from the balls hitting the wall, so trustees directed Cherek to work with the owner on securing the net better or possibly adding padding.

■ The board approved the hiring of Alexis Hall as an EMT and Joshua Krautkramer as assistant fire chief.

■ The board accepted a $3,500 sealed bid from Richard Seubert for the village’s 1946 fire truck.

■ Cherek said he spoke to the local postmaster about resurfacing the office space at the Marathon Post Office, which is located in the same building as village hall. Based on price quotes acquired by the postmaster, the project would cost between $17,000 to $18,000. Cherek said the village could possibly pay to have it done this year, but trustees wanted to hold off until they could consider all of the flooring options.

■ Trustees discussed options for replacing 250 feet of sewer lateral at Veterans Park, which backed up last summer due to several breaks in the pipe. Cherek said he plans on talking to groups that use the park about donating toward the project, which is estimated to cost over $20,000. No action was taken.

■ The board voted to repeal a section of ordinance that had allowed survey maps of adjacent parcels to be recorded with the register of deeds without board review and approval. Cherek said a local surveyor brought the loophole to his attention.

■ The board met in closed session to discuss negotiations regarding the 400 block.