Fond du Lac's 2024 city budget highlights housing and other developments to stimulate labor force

FOND DU LAC — As the leaves fall in Fond du Lac, the city is already planning for next year.

City officials spend the fall season finalizing the city's budget, the community's most important annual policy decision, according to City Manager Joe Moore, keeping the city in operation in support of the community for the next year.

The budget, capital improvement plan and the American Rescue Plan Act plan proposal were published Aug. 25. Fond du Lac City Council will host a public hearing at its regular meeting Oct. 25, and will vote on all three plans Nov. 8.

All three plans are available on the city website, under the Finance section. Here's a look at what they include.

Fond du Lac's growth depends on its labor force: Priorities include housing, recreation

A key challenge for Fond du Lac looking forward is the labor force, with historically low unemployment in 2023, employers having difficulty finding employees and employers working at capacity, having to turn away work or expansion opportunities because of a lack of qualified available potential employees, according to the budget introduction.

Additionally, the city's population grew at a bigger rate than the state's over the past decade, but the effects of the shrinking Wisconsin working age on Fond du Lac's growth potential is cause for concern, Moore said in the introduction.

As a result, he said priorities for the city should include expanding the variety and quantity of housing, creating and adapting attractive commercial and retail developments, and expanding recreational assets, such as parks and trails, all to entice people to come to Fond du Lac to live and work.

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Overall budget

In addition to residential and commercial developments to draw people in, another priority in the city budget is public safety, from safe drinking water to law enforcement and fire and rescue services.

The 2024 general fund ― the main source of money governments use to pay for administrative and operational tasks — is set at $37.89 million, an increase of 1.9% over last year's budget.

"I’m especially pleased that at a time when we’ve seen inflation running as much as 8%, we have a budget that includes expenditures growing at less than 2%," Moore told The Reporter.

The city also reduced its year-over-year use of fund balance by 10 times, he added.

The overall tax levy is set at $32.43 million, an increase of 5.6% over the 2023 budget. The city estimates the tax rate would be $7.99 per $1,000 of assessed value, a decrease from last year's total of $8.63.

For example, the owner of a $200,000 home would pay $1,598 in property taxes for city services next year, a decrease of almost $130 from last year. The calculation doesn't include taxes for schools or the county.

2024-28 Capital Improvement Plan

The Capital Improvement Plan, a multi-year outline of city capital projects, includes water and wastewater utility improvements, annual street repairs, a feasibility study into a fourth fire station and additional developments.

With the creation of Tax Incremental District 25 — which plans to develop the vacant parking lot and surrounding area on Johnson and Doty streets — and the funding allocations in the plan and the CIP, the city proposes a $10 million investment in residential and commercial economic development and $5.8 million for residential and commercial as part of TID 25, Moore said.

Another $4.2 million in utility infrastructure expansion hopes to spur residential development on undeveloped land south of U.S. 151.

Next year's phase for Pioneer Road improvements, in partnership with the county, will include the section between County V and Martin Avenue, near Theisen Middle School.

The plan for full renovation of the city police department will continue for the next two years, after which the city will have "a greatly improved and exceptionally functional law enforcement headquarters," Moore said.

For the riverfront and North Main Street development plans, the CIP includes a $1.2 million investment over the five-year plan for the riverfront, and $75,000 a year from 2024 to 2026 to provide business façade assistance to businesses in the North Main Street corridor, according to the CIP.

Community development

At the Sept. 20 city council special meeting discussing the budget, one of the decisions council supported was reallocating $40,000 from what would go to Envision Greater Fond du Lac into the general economic development fund, leaving $10,000 to Envision for the chamber membership.

"Council has decided it’s a more efficient use of our economic development budget to keep it in our own community development department," City Council President Keith Heisler told The Reporter. "We have so many wonderful projects that have been spearheaded by the city’s community development team and we expect that to continue."

In a news release in response to the council's decision, Envision President and CEO Sadie Vander Velde said the board of directors and Envision members were "disheartened" by the decision and also cited last year's decision by council to cut half of the financial support of Envision, allocating the money for downtown.

“Envision Greater Fond du Lac and our predecessors were founded on the principles that public/private partnerships are vital to a thriving local economy,” she said. “No single organization can do it alone."

At the meeting, the council ultimately agreed on the city community development department's continued mark on the city, including the upcoming riverfront and North Main Street projects and the continuing revitalization of the Brooke Street corridor.

Last year's reallocation of money helped Downtown Fond du Lac Partnership fund its pool of grants, which supports business owners starting or expanding a business downtown, or contributing to its overall aesthetic and appeal.

Additionally, with Fond du Lac County also supporting Envision, some council members felt city residents were paying twice for Envision's services, with about 40% of the county's support coming from city residents, according to Heisler.

The reallocated money amounts to roughly 1% of Envision’s operating budget, Moore added.

According to Envision’s news release, its own economic development team has efforts in place to address the housing shortage, workforce shortage and child care crisis by working with organizations and business leaders.

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Council members Jane Ricchio and Thomas Schuessler were opposed to this year's reallocation: Ricchio wants somebody from Envision to explain to council what Envision does and what it would use the money for before a final decision is made, and Schuessler, as a former chamber president for another community, feels a city's partnership with the chamber is important and the reallocation would be "too big of a blow."

American Rescue Plan Act funds

Fond du Lac received a total of $13,792,153 from the American Rescue Plan Act since 2021 to maintain public services and support recovery from the COVID-19 pandemic.

Funds need to be committed by the end of 2024 and spent by the end of 2026. The money has been limited to use for continuing to provide government services as a result lost revenues, supporting the COVID-19 public health and economic response, providing premium pay for eligible workers or investing in water, sewer and broadband infrastructure.

The city's plan focuses ARPA funding on one-time investments to avoid "operational funding cliffs," which are created when funding for an activity ends abruptly, according to the plan introduction.

The funds have so far been allocated to the inclusive playground at Plamore Park and other improvements at Franklin, Hamilton and McDermott parks, as well as a stormwater flooding study and other projects focused on infrastructure, security and a Food Hall Business Incubator.

As these projects from the last couple years continue, projects for 2024 include the Fond du Lac Public Library's update of the local history book and improvements to the Information Technology Services Department. The entirety of the city’s ARPA dollars have not yet been allocated.

A possible project for the remaining funds is investment into enhancing the Fond du Lac County Fairgrounds, in partnership with the county.

At the Sept. 20 meeting, Schuessler proposed putting $25,000 toward the Fond du Lac County Historical Society for its downsizing efforts, using some of the money allocated to the library for its history book. This would mean changing the allocation to preserving Fond du Lac history through the library and the historical society.

The maximum the society would ask the city for is $25,000, but that doesn't necessarily mean that will be the amount it will ask for, Moore said at the meeting. The society is also pursuing a grant.

Though some members were hesitant to use the funds on a county organization rather than a city organization, the council approved the decision.

Jon Mark Bolthouse, the library's director, is in support of this, according to Heisler.

Daphne Lemke is the Streetwise reporter for the Fond du Lac Reporter. Contact her at dlemke@gannett.com.

This article originally appeared on Fond du Lac Reporter: Fond du Lac city budget: 2024 funds include workforce solutions