MONROE - The City of Monroe Common Council on Wednesday started the process of borrowing up to $1.86 million to finance the 8th and 9th Street reconstruction project starting in mid-March.
But the Finance and Taxation Committee said it doesn't want to "pull the trigger" just yet.
The Common Council passed three resolutions Wednesday initiating the authorization of borrowing through general obligation bonds for the three-prong project - street improvements, including widening, from 7th Avenue to 20th Avenue; a bridge replacement on Badger State Trail near 7th Avenue; and water and sewer line replacements.
But removed from the council's agenda Wednesday was a resolution authorizing and directing city staff to offer the bonds for public sale.
That resolution may come back to Council within 90 days, according to Finance and Taxation Committee officials.
Holding up the process - even as the project moves forward with state and federal grant money to supplement street improvement costs - are issues around financing one or two parts of the project from the more than $5 million in undesignated reserve funds.
The bridge project needs about $140,000, and the water utility project needs about $615,000. The street improvements require $1,105,000 in bonds.
Monroe City Administrator Phil Rath said the bridge aspect of the project amounts to a "once-in a long-time, if ever, replacement" expenditure, unlike city street replacements, and could be financed directly by the city.
The city could also loan the Water Utility the $600,000, and be repaid by the utility at an interest rate lower than current bond rates.
The risk the city takes by postponing the bond sale is an increase in interest rates, which the Finance and Taxation Committee directed Rath to watch closely.
The resolutions each passed on a 7-1 vote, with Alderman Thurston Hanson voting against the bonds.
Hanson said the city has a healthy undesignated fund balance, even after paying for a $950,000 fire station last year.
The city, he said, could finance the entire $1.8 million project, save $94,000 in fees and other costs, and prevent the city's debt limit from rising.
Alderman Neal Hunter was absent, and the Ward 6 seat remains vacant until after the April 5 election.
But the Finance and Taxation Committee said it doesn't want to "pull the trigger" just yet.
The Common Council passed three resolutions Wednesday initiating the authorization of borrowing through general obligation bonds for the three-prong project - street improvements, including widening, from 7th Avenue to 20th Avenue; a bridge replacement on Badger State Trail near 7th Avenue; and water and sewer line replacements.
But removed from the council's agenda Wednesday was a resolution authorizing and directing city staff to offer the bonds for public sale.
That resolution may come back to Council within 90 days, according to Finance and Taxation Committee officials.
Holding up the process - even as the project moves forward with state and federal grant money to supplement street improvement costs - are issues around financing one or two parts of the project from the more than $5 million in undesignated reserve funds.
The bridge project needs about $140,000, and the water utility project needs about $615,000. The street improvements require $1,105,000 in bonds.
Monroe City Administrator Phil Rath said the bridge aspect of the project amounts to a "once-in a long-time, if ever, replacement" expenditure, unlike city street replacements, and could be financed directly by the city.
The city could also loan the Water Utility the $600,000, and be repaid by the utility at an interest rate lower than current bond rates.
The risk the city takes by postponing the bond sale is an increase in interest rates, which the Finance and Taxation Committee directed Rath to watch closely.
The resolutions each passed on a 7-1 vote, with Alderman Thurston Hanson voting against the bonds.
Hanson said the city has a healthy undesignated fund balance, even after paying for a $950,000 fire station last year.
The city, he said, could finance the entire $1.8 million project, save $94,000 in fees and other costs, and prevent the city's debt limit from rising.
Alderman Neal Hunter was absent, and the Ward 6 seat remains vacant until after the April 5 election.