MONROE - Funding for the 8th/9th Street project will be a blend of cash and borrowing.
The Finance and Taxation Committee agreed unanimously to pay for the city's portion of the new street with $1.1 million with bonds, to lend the Water Utility about $610, 000 to cover its portion of project costs; and to spend $140,000 in reserve funds to replace the trail bridge near 7th Avenue.
The funds loaned to the water utility will be repaid, with interest, at about 4 percent - more than the city now receives from its bank investments, although interest-only payments will be requested until the utility completes payments on another bond in 2014 or 2015.
Some committee members expressed concern about reducing city reserve funds in expectation of reduced state shared revenues, starting next year.
City administrator Phil Rath said he expects state cuts to Monroe to be about $300,000.
The cuts are "not as big a hit as I originally thought," said Dan Henke, committee chairman.
The Finance and Taxation Committee agreed unanimously to pay for the city's portion of the new street with $1.1 million with bonds, to lend the Water Utility about $610, 000 to cover its portion of project costs; and to spend $140,000 in reserve funds to replace the trail bridge near 7th Avenue.
The funds loaned to the water utility will be repaid, with interest, at about 4 percent - more than the city now receives from its bank investments, although interest-only payments will be requested until the utility completes payments on another bond in 2014 or 2015.
Some committee members expressed concern about reducing city reserve funds in expectation of reduced state shared revenues, starting next year.
City administrator Phil Rath said he expects state cuts to Monroe to be about $300,000.
The cuts are "not as big a hit as I originally thought," said Dan Henke, committee chairman.