Arcadia flood project: ‘What are we doing?’

Following one member’s objection that he sees no reason to trust federal engineers with Arcadia taxpayers’ money, the council extended the city’s borrowing ability for six more months to help cover the flood works design project.

“Red tape is soaking up money,” said council member Kyle Myhre of the U.S. Army Corps of Engineers’ six-and-a-half-year-old project to design flood control for the city. “I haven’t seen one reason to trust giving taxpayers’ money to the army corps. What are we doing? We could face no other improvements, no new police officers if we stay wrapped up in a project with no idea what it will cost.”

Despite his protests at last Wednesday council meeting, Myhre made the motion to extend by six months Arcadia’s ability to tap into $1.3 million in borrowed money to provide funds for the project. The short-term borrowing agreement was set to expire May 1. The motion passed unanimously. Myhre also called for the project to be discussed at every council meeting.

The original interest on the money was 1.79 percent. It is expected to climb to five or 5.5 percent with the extension, said the city’s financial advisor, Sean Lentz of Ehlers.

“I’m not here to stop the project but we can’t put taxpayers on the hook for an unknown amount,” Myhre said. “I know we’ve already spent a lot on this, but its better to have $3 million (in debt) over 10 years, that $30 million.” 

The corps originally told the city it would reach 65 percent of design for the first phase of work by March but now estimates that date will be June. It also asked for $400,000 for its project work but agreed to settle for a city payment of $50,000.

The latest corps’ estimate for the entire flood project is $53.8 million, city attorney Terry Madden told the council. Even with the remainder of corps funds and a state grant, the city’s share would total $30.1 million.

“The tax impact could be tremendous,” Myhre said. Lentz said tax hikes could be lessened by two tax incentive districts maturing and being back on the tax rolls and growth in the city’s tax base.

The corps’ original estimate for the entire project was $25 million in 2019. Since that time, the city also pulled an $8 million internal drainage project out of the corps’ scope. After grants, the city’s share of that completed work was $2.8 million.

City officials have previously considered just funding the first phase of the corps’ designs, which would improve protection along Turton Creek from Oak Street to just west of the railroad crossing. A portion of the $14.6 million the state awarded Arcadia for the project is expected to be available for the first phase.

At least one member of the local state legislative contingent is expected to meet with the council in May to discuss whether the state could provide additional money.

In separate action related to the flood project, the council accepted the low bid of J.C. Norby of Eau Claire for $10,700 to assess the value of up to seven properties that could be purchased to accomplish the Turton Creek project. The second bid, from Midwest Appraisers, was $38,000.

In other action, the council:

• Approved operator licenses for three individuals but rejected one for Jose Angela Acevedo Cancel because of law enforcement concerns.

• Rejected applicants for pool manager and will repost the position.

• Amended a city ordinance to make regulations consistent across all city parks.