La Crosse advances special assessments for water and sewer mains amid cost-sharing discussions

La Crosse advances special assessments for water and sewer mains amid cost-sharing discussionsThe city's Board of Public Works has approved initial steps to levy special assessments for water and sanitary sewer projects on St. Andrew and St. Cloud streets, detailing a system designed to mitigate resident "sticker shock" through long-term utility absorption and payment plans.

The Board of Public Works advanced special assessments for water main and sanitary sewer improvements on the 500 block of St. Andrew Street and the 800 block of St. Cloud Street.

Under city ordinance, benefiting property owners cover approximately 15% of water main project costs, with the utility absorbing the remaining 85% to 90%.

Sanitary sewer assessments are calculated differently, with the costs of manhole structures and mains divided evenly among serviced properties based on pipe length.

To ease the financial burden, the city allows property owners to spread assessment payments over 10 to 15 years at a low interest rate.

The board also unanimously approved reallocating unspent capital funds to address underfunded water and sanitary sewer utility projects.

The City of La Crosse Board of Public Works advanced a series of special assessments on May 4 to partially fund water and sanitary sewer main improvements on St. Andrew Street and St. Cloud Street. The approvals mark the first statutory step toward levying the assessments, which will be followed by a public hearing before the Common Council. A key focal point of the meeting was the methodology used to calculate the financial burden on residents versus the municipal utility. Director Gallagher explained that for water mains, the city estimates the cost for the main, service leads, and stops. "Generally speaking, those result in paying for about 15% of the actual cost. The other 85 to 90% is absorbed by the utility," Gallagher stated. Conversely, sanitary sewer assessments are calculated using a different statutory procedure. The costs for manhole structures and sanitary mains are divided evenly among the properties serviced by the improvement, based on pipe length and structure requirements. Board members expressed concern over the financial impact on homeowners, referencing potential "sticker shock" from the substantial property assessments. In response, city staff detailed the municipality's mitigation strategies. Property owners have the option to pay the assessment as a lump sum or spread the cost over a 10- or 15-year period at a low interest rate established by the finance department. Director Hawkins confirmed that amortization schedules are now included in initial project notification letters to help residents prepare for the financial impact nearly a year before the assessments are attached to property taxes. The special assessments for the St. Cloud Street water and sewer mains passed by 3-0 votes, with two abstentions, while the St. Andrew Street water main assessment passed 4-1. In separate utility management actions, the board unanimously approved two resolutions reallocating unspent capital funds from completed projects to address underfunded and unplanned capital equipment needs for both the Water Utility and the Sanitary Sewer Utility. This reallocation includes funding tied to a development agreement for converting a library into apartments at 16th and Farnam. Furthermore, the board approved construction contract change orders for a Highway 16 water main transmission project.