MONROE - A disagreement among Monroe Common Council members on how to fund the parking ramp demolition may lead to delayed street projects and equipment purchases for the city this year.
Council members argued over two options. Financial company Ehlers recommended including the estimated $650,000 demolition of the municipal parking ramp downtown in a bond request of roughly $2 million if the city refinanced Tax Increment District 5 and TID 6 to save money on interest.
Two options were put forward. Both would pay off TID interest while covering the amount of the demolition and street projects and equipment purchases. However, one option would be to pay back the amount borrowed over 10 years, in what City Administrator Phil Rath called "aggressive pay down," while the other would be repaid over 20 years, split between a bond and a 10-year note. He added that a benefit of borrowing now would be the low interest rate of 2 percent. The city would take on $1.7 million in new debt to cover the capital costs and to save the city about $213,000 in TID interest payments.
Public Works Director Al Gerber said the streets projects and roughly $400,000 in equipment purchases had been included in the 2016 capital budget but had not yet been funded. The projects are mill and overlay replacement along 11th Street from Wisconsin 69 to 13th Avenue, repairing 21st Street from Wis. 69 and 4th Avenue West and $400,000 in equipment, including a new snow plow to replace an aging model.
During the council meeting on June 21, aldermen could not agree to fund the demolition of the municipal parking ramp. Alderman Michael Boyce questioned why the demolition costs were included with capital projects. He added that he believed the city should wait until 2017, when prevailing wage laws are dropped by the state as a way to save money on the project.
"All we're doing is saving on an interest rate," Boyce said. "I don't see the connection between the three issues. Do we have to make a decision now?"
The original goal when the council had agreed to tear down the ramp had been to remove the structure before Green County Cheese Days in mid-September. That plan is no longer viable because of the lack of available time.
"The plan right now is to leave it open as it is with the usual spots marked off," Gerber said.
When the ramp is knocked down, Gerber said the space left behind will be paved in order to prevent erosion a gravel lot would cause.
Boyce said during the council proceedings that because of concerns raised by the Cheese Days committee regarding the status of the ramp during the festival and his preference to wait until prevailing wage laws are more fiscally beneficial to the city, the matter should wait until January. No decision was reached on how to fund the ramp demolition or the other projects. Instead, council members reached a consensus that they wished to see which projects are slated for the 2017 budget and possibly include those to be funded with borrowing they make for the current projects in question. They noted the large roadway project along 8th Street between 6th Avenue West and Wis. 69 scheduled for next year, which will be an estimated $4 million to $5 million.
Gerber said the department expected not to have equipment and funding put in place until late in the year. However, the equipment may not get a turn on the road in the upcoming winter months due to the delivery time following their order after funding is officially approved.
"It could delay snow equipment for this season," Gerber said. "I think we will still have time for street projects, but it has the potential to affect some of the prices that come in."
The issue will be taken back to the Finance and Taxation Committee, which will evaluate the capital needs for 2017, Rath said. The city council will deliberate recommended options from the committee during their meeting July 19.
Council members argued over two options. Financial company Ehlers recommended including the estimated $650,000 demolition of the municipal parking ramp downtown in a bond request of roughly $2 million if the city refinanced Tax Increment District 5 and TID 6 to save money on interest.
Two options were put forward. Both would pay off TID interest while covering the amount of the demolition and street projects and equipment purchases. However, one option would be to pay back the amount borrowed over 10 years, in what City Administrator Phil Rath called "aggressive pay down," while the other would be repaid over 20 years, split between a bond and a 10-year note. He added that a benefit of borrowing now would be the low interest rate of 2 percent. The city would take on $1.7 million in new debt to cover the capital costs and to save the city about $213,000 in TID interest payments.
Public Works Director Al Gerber said the streets projects and roughly $400,000 in equipment purchases had been included in the 2016 capital budget but had not yet been funded. The projects are mill and overlay replacement along 11th Street from Wisconsin 69 to 13th Avenue, repairing 21st Street from Wis. 69 and 4th Avenue West and $400,000 in equipment, including a new snow plow to replace an aging model.
During the council meeting on June 21, aldermen could not agree to fund the demolition of the municipal parking ramp. Alderman Michael Boyce questioned why the demolition costs were included with capital projects. He added that he believed the city should wait until 2017, when prevailing wage laws are dropped by the state as a way to save money on the project.
"All we're doing is saving on an interest rate," Boyce said. "I don't see the connection between the three issues. Do we have to make a decision now?"
The original goal when the council had agreed to tear down the ramp had been to remove the structure before Green County Cheese Days in mid-September. That plan is no longer viable because of the lack of available time.
"The plan right now is to leave it open as it is with the usual spots marked off," Gerber said.
When the ramp is knocked down, Gerber said the space left behind will be paved in order to prevent erosion a gravel lot would cause.
Boyce said during the council proceedings that because of concerns raised by the Cheese Days committee regarding the status of the ramp during the festival and his preference to wait until prevailing wage laws are more fiscally beneficial to the city, the matter should wait until January. No decision was reached on how to fund the ramp demolition or the other projects. Instead, council members reached a consensus that they wished to see which projects are slated for the 2017 budget and possibly include those to be funded with borrowing they make for the current projects in question. They noted the large roadway project along 8th Street between 6th Avenue West and Wis. 69 scheduled for next year, which will be an estimated $4 million to $5 million.
Gerber said the department expected not to have equipment and funding put in place until late in the year. However, the equipment may not get a turn on the road in the upcoming winter months due to the delivery time following their order after funding is officially approved.
"It could delay snow equipment for this season," Gerber said. "I think we will still have time for street projects, but it has the potential to affect some of the prices that come in."
The issue will be taken back to the Finance and Taxation Committee, which will evaluate the capital needs for 2017, Rath said. The city council will deliberate recommended options from the committee during their meeting July 19.