OCEDC officials ask city to reconsider budget cut

Officials with the Oneida County Economic Development Corporation (OCEDC) attended the Oct. 16 city budget hearing to express their disappointment with what was described as a major decrease in the funding the organization receives from the city.

However, only one alderperson was present in person to hear their pitch.

The group’s new executive director, Tony Pharo, noted that the organization is working hard to help with economic development in Rhinelander and in Oneida County in general.

“It’s kind of a new chapter for our organization, and I hope that the city will reconsider the cut to our budget,” he said. “We feel that we provide needed service for Rhinelander and Oneida County.”

 Pharo explained that he has been with the organization for four months, having succeeded Jeff Verdoorn who retired earlier this year. 

He described the proposed 50 percent cut in funding — from $26,000 to $13,000 — as a “a big hardship.”

“We’re a source to help the city move forward,” he continued, noting that it’s “kind of frustrating to see our budget cut when we see value, and a lot of people in the city and in the county see what we do.”

“We’ve worked on two hotels here in Rhinelander, along with Blain’s (Farm & Fleet), to bring them in, and that’s something that we’ve done to help grow the city and the economy here,” he added.

“We want to work with you. We want to work with all the residents in the city and the county and I think our track record shows that.”

Leah Van Zile, president of the OCEDC board of directors, echoed Pharo’s sentiments.

“We have a long history of partnering together, the city, county, Oneida County Economic Development. Without that partnership, I just don’t see where the progress is going to come from,” she said.

It would be “short-sighted” of the city to ask ‘what have you done for me lately in the last 12 months’ when the organization has been supporting local businesses for decades, she added.

“We’ve done a lot for you guys lately for the City of Rhinelander and for Oneida County,” she said, before detailing the organization’s slate of grant programs and services.

Finally, Pete Otis offered some history of the organization. 

“There was a forum out at Nicolet College (in the mid 1980s) and basically it was to kind of brainstorm about how to get more business back into this area (after major employers either shut down or reduced their workforce). The result was the formation of this economic development corporation.”

“It was kind of a shock when I saw that it was a 50 percent cut,” he added, referred to the city’s proposed contribution to OCEDC in 2025. “We’ve been a lean operation the entire time we’ve been in existence. We've never had more than a full-time director and a part-time assistant.”

As alderman Luke Kramer was the only council member present, the hearing was not an official meeting of the city council but an informal discussion.

When the River News asked city administrator Patrick Reagan to confirm the proposed budget cut, he advised that Mayor Kris Hanus “directed that this line item be cut from $26,000 to $13,000 in the proposed 2025 City of Rhinelander budget.”

When the newspaper reached out to Hanus for confirmation, he offered the following explanation.

“That is correct,” he wrote in an email to the River News. “This year has been a tough year to balance the city budget. As we (are) seeing double-digit increases in healthcare as well as the cost of doing business going up at a faster rate than our revenues, we had to make cuts going into this budget cycle. We were $300,000 roughly over budget. We looked at all aspects and made tough decisions on how to balance our budget. As you may know the budget that has been presented at the different meetings is a draft that the City Council can approve or tweak. OCEDC and the city have had a great partnership for many years, and I hope we can continue to move Rhinelander forward.”

According to city finance director Wendi Bixby, a public hearing on the proposed city budget will take place on Nov. 11.

To view the entire Oct. 16 budget hearing, as well as all of the previous 2025 city budget hearings, visit www.hodagtv.com.

Heather Schaefer may be reached at [email protected].