MONROE - Monroe property owners will probably not be seeing an increase in their taxes to pay for a new fire station on the city's west side.
The Finance and Taxation Committee voted Monday to draw $950,000 from the city's unreserved fund balance to cover the cost of the new facility.
The move will save the city an estimated $654,000 in interest costs over the life of $950,000 in 20-year general obligation bonds (GOB), authorized for sale by Common Council Feb. 17.
Council is now expected to rescind that resolution at its meeting tonight, which will stop the sale.
Property owners will be saved from an increase in taxes of about 9 cents per $1,000 of equalized property value, or $9 on a $100,000 home, per year.
City Comptroller Cathy Maurer said that with recent investment rates the city will lose only about $55,000 in interest.
The city's cash on hand for working capital stands at $5.1 million, after taking into account the city's liabilities and required reserves, according to a report from financial advisors Ehlers and Associates, which was presented to the committee Monday.
Greg Johnson, a representative of Ehlers, said the city is advised to keep a minimum of $2.5 million on hand for unforeseen emergencies, and to keep the city's A2 rating by Moody's Investment Service.
Johnson said Ehlers would not charge the city for work it has done in preparing the bond sale.
The bond sale included a total of $50,000 for financing costs, which will not occur if the sale is canceled.
The savings from the bonds' interest does not take into account 35 percent of the interest costs, which would have been subsidized by the U.S. Treasury, under the Build America Bonds program.
Marsh said Friday that the change in financing the station will not delay the construction timeline.
"In fact, if council decides to go with the (new) option, it could be faster," he said.
Construction is expected to begin in April, and the station could be completed by Oct. 1.
Fire Chief Daryl Rausch was not available Monday for comment.
The cost of the west-side fire station project is about $900,000, which includes $24,000 for construction of office space in a portion of the downtown station for use by the city Police Department, and $43,000 for additional building equipment for the new station.
Rausch is set to hire contractors in mid-March.
Midwest Builders of Fennimore bid of $376,987 for phase one, which includes site work and the steel building.
Harmony Construction Management of Madison bid $258,000 for interior work, and J.F. Ahearn Fire Protection of Madison bid $18,922 for the sprinkler and fire alarm systems.
The bids came in under budget, putting the project $14,000 below the initial estimate as of Feb. 3.
The Finance and Taxation Committee voted Monday to draw $950,000 from the city's unreserved fund balance to cover the cost of the new facility.
The move will save the city an estimated $654,000 in interest costs over the life of $950,000 in 20-year general obligation bonds (GOB), authorized for sale by Common Council Feb. 17.
Council is now expected to rescind that resolution at its meeting tonight, which will stop the sale.
Property owners will be saved from an increase in taxes of about 9 cents per $1,000 of equalized property value, or $9 on a $100,000 home, per year.
City Comptroller Cathy Maurer said that with recent investment rates the city will lose only about $55,000 in interest.
The city's cash on hand for working capital stands at $5.1 million, after taking into account the city's liabilities and required reserves, according to a report from financial advisors Ehlers and Associates, which was presented to the committee Monday.
Greg Johnson, a representative of Ehlers, said the city is advised to keep a minimum of $2.5 million on hand for unforeseen emergencies, and to keep the city's A2 rating by Moody's Investment Service.
Johnson said Ehlers would not charge the city for work it has done in preparing the bond sale.
The bond sale included a total of $50,000 for financing costs, which will not occur if the sale is canceled.
The savings from the bonds' interest does not take into account 35 percent of the interest costs, which would have been subsidized by the U.S. Treasury, under the Build America Bonds program.
Marsh said Friday that the change in financing the station will not delay the construction timeline.
"In fact, if council decides to go with the (new) option, it could be faster," he said.
Construction is expected to begin in April, and the station could be completed by Oct. 1.
Fire Chief Daryl Rausch was not available Monday for comment.
The cost of the west-side fire station project is about $900,000, which includes $24,000 for construction of office space in a portion of the downtown station for use by the city Police Department, and $43,000 for additional building equipment for the new station.
Rausch is set to hire contractors in mid-March.
Midwest Builders of Fennimore bid of $376,987 for phase one, which includes site work and the steel building.
Harmony Construction Management of Madison bid $258,000 for interior work, and J.F. Ahearn Fire Protection of Madison bid $18,922 for the sprinkler and fire alarm systems.
The bids came in under budget, putting the project $14,000 below the initial estimate as of Feb. 3.