MONROE - The Monroe Common Council passed an initial resolution Wednesday to start the process of borrowing $950,000 for the construction of a fire station on the west side of the city by issuing general obligation bonds.
The estimated project cost came in at about $900,000, which includes funds for some reconstruction of the downtown station, a portion of which will be for use by the city Police Department. The extra $50,000 in bonds is for financing related costs.
The bonds are expected to go on sale March 16. The closing is slated for April 7, when the city should receive its funds.
The term of financing is for 20 years, and the city qualifies for a Build America Bonds designation by the United State Treasury, which will subsidize 35 percent of the annual interest costs.
The equalized tax rate for debt service is projected to be about 9 cents per $1,000 of equalized value. The owner of a $100,000 home can expect to pay about $9 per year during the term of the bonding.
Council voted 9-1 in favor of the initial resolution. Thurston Hanson voted against.
Hanson has repeatedly voted against resolutions on the fire station construction saying the time is not right for the city to be borrowing money. Hanson made no comments at Wednesday's council meeting.
Hanson did join the other council members in favor of authorizing the required publication of the initial resolution.
The city is required by state statutes to publish the initial resolution within 15 days to give notice to the public.
After council adjourned, Hanson said he voted for the publication in order to inform the public and to give them time to get a petition signed if they want to request a referendum.
A request for a referendum needs a petition signed by electors numbering at least 10 percent of the votes cast for governor in the city at the last general election.
Hanson said he would not be initiating a petition.
Fire Chief Daryl Rausch is set to hire contractors in mid-March. Dave Wagner, Ehlers senior financial advisor, who presented the bond pre-sale report, said hiring contractors at that time should pose no problem.
Midwest Builders of Fennimore bid $376,987 for phase one of the project, 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 under estimate as of Feb. 3.
Building the west-side fire station is expected to cost $800,000.
Of the extra $100,000, about $30,000 will go to the cost of building plans, site plans, and permits; $43,000 will be used to purchase additional building equipment for the station. About $24,000 will go to remodeling one bay in the current fire station for office space for the police department.
The remaining $3,000 was intended to pay for the bonding process, assuming the city would combine bonding for the fire station and for the 8th and 9th streets project. Because the city postponed the street project, the fire station now holds all financial related expenses, putting the project $33,000 over budget.
Construction is set to begin sometime in April. Rausch expects the entire project will be completed by Oct. 1.
The estimated project cost came in at about $900,000, which includes funds for some reconstruction of the downtown station, a portion of which will be for use by the city Police Department. The extra $50,000 in bonds is for financing related costs.
The bonds are expected to go on sale March 16. The closing is slated for April 7, when the city should receive its funds.
The term of financing is for 20 years, and the city qualifies for a Build America Bonds designation by the United State Treasury, which will subsidize 35 percent of the annual interest costs.
The equalized tax rate for debt service is projected to be about 9 cents per $1,000 of equalized value. The owner of a $100,000 home can expect to pay about $9 per year during the term of the bonding.
Council voted 9-1 in favor of the initial resolution. Thurston Hanson voted against.
Hanson has repeatedly voted against resolutions on the fire station construction saying the time is not right for the city to be borrowing money. Hanson made no comments at Wednesday's council meeting.
Hanson did join the other council members in favor of authorizing the required publication of the initial resolution.
The city is required by state statutes to publish the initial resolution within 15 days to give notice to the public.
After council adjourned, Hanson said he voted for the publication in order to inform the public and to give them time to get a petition signed if they want to request a referendum.
A request for a referendum needs a petition signed by electors numbering at least 10 percent of the votes cast for governor in the city at the last general election.
Hanson said he would not be initiating a petition.
Fire Chief Daryl Rausch is set to hire contractors in mid-March. Dave Wagner, Ehlers senior financial advisor, who presented the bond pre-sale report, said hiring contractors at that time should pose no problem.
Midwest Builders of Fennimore bid $376,987 for phase one of the project, 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 under estimate as of Feb. 3.
Building the west-side fire station is expected to cost $800,000.
Of the extra $100,000, about $30,000 will go to the cost of building plans, site plans, and permits; $43,000 will be used to purchase additional building equipment for the station. About $24,000 will go to remodeling one bay in the current fire station for office space for the police department.
The remaining $3,000 was intended to pay for the bonding process, assuming the city would combine bonding for the fire station and for the 8th and 9th streets project. Because the city postponed the street project, the fire station now holds all financial related expenses, putting the project $33,000 over budget.
Construction is set to begin sometime in April. Rausch expects the entire project will be completed by Oct. 1.