MONROE - The controversial mortgage guarantee offered by the city council last week to its city administrator will not be used after all.
Phil Rath, city administrator since Dec. 6, 2010, said Tuesday he is declining the offer.
The Common Council passed a resolution March 23 guaranteeing up to 30 percent of any home loan Rath could get from a local bank for the purchase of a single-family dwelling in Monroe. The resolution passed on a 7 to 2 vote.
"I appreciate what the Common Council did, and I realize they were trying to help, but I was concerned (with the ramifications)," Rath said in a telephone interview Tuesday.
Rath said he has not closed on a home sale but has made an offer on a house in Monroe, adding that no bank has offered to use the city's mortgage guarantee.
"Renting has always been an option," he said. "We plan to be here permanently, and we are getting close to the end, so we are considering renting more seriously."
Rath has been out of town since the council passed the resolution and said he was unaware of public outcry about it. Some have called or sent letters to some aldermen and have posted comments online denouncing the council's action.
Rath said he learned during a recent conference of city managers that offers to assist new employees with relocating costs could be found in private industries and, with the recent economic situation, such offers may be worth exploring by government entities.
"I was cautioned too that it could cause a political nightmare," he added.
That advice, Rath said, raised concerns in his own mind about the offer.
"I was not comfortable at the Common Council meeting, but I was relying on the council to get the pulse of the city," he said.
"There was no discussion against it at the meeting," he added. "Maybe if they (council members) would have said it was not a good idea, but they didn't turn it down right away. I wish there had been more discussion."
Mayor Bill Ross, who implemented the resolution, said the offer to guarantee a portion of the mortgage was similar to other cities' efforts to help administrators with moving costs but was not part of Rath's original hiring contract.
Ross said he spoke about the idea with some aldermen, who viewed the guarantee as a way to help Rath fulfill his requirement to live in the City of Monroe within six months of being hired.
"We were going from the heart," Ross said.
Rath said he never requested the mortgage guarantee, and he doesn't expect any "special favors" from the city.
"I'm not better than anyone else," he said.
A recent foreclosure on a house that Rath had for lease prevents him from getting a conventional home loan, he said.
The foreclosure was not forced, and Rath said he was not deficient in his payments, but the bank had to use the foreclosure procedure to retake the house.
Now, with newly implemented banking practices, lending institutions rely only on "the numbers" for approving a loan, he said.
"It's not like back then, when banks could look at your character and job position when considering a loan," he said.
Rath said he and his wife will continue as they have from the beginning of his hiring - searching for a home to suit their family of eight.
For financing, Rath said he's even asking friends and family to be co-signers - but not the city.
Phil Rath, city administrator since Dec. 6, 2010, said Tuesday he is declining the offer.
The Common Council passed a resolution March 23 guaranteeing up to 30 percent of any home loan Rath could get from a local bank for the purchase of a single-family dwelling in Monroe. The resolution passed on a 7 to 2 vote.
"I appreciate what the Common Council did, and I realize they were trying to help, but I was concerned (with the ramifications)," Rath said in a telephone interview Tuesday.
Rath said he has not closed on a home sale but has made an offer on a house in Monroe, adding that no bank has offered to use the city's mortgage guarantee.
"Renting has always been an option," he said. "We plan to be here permanently, and we are getting close to the end, so we are considering renting more seriously."
Rath has been out of town since the council passed the resolution and said he was unaware of public outcry about it. Some have called or sent letters to some aldermen and have posted comments online denouncing the council's action.
Rath said he learned during a recent conference of city managers that offers to assist new employees with relocating costs could be found in private industries and, with the recent economic situation, such offers may be worth exploring by government entities.
"I was cautioned too that it could cause a political nightmare," he added.
That advice, Rath said, raised concerns in his own mind about the offer.
"I was not comfortable at the Common Council meeting, but I was relying on the council to get the pulse of the city," he said.
"There was no discussion against it at the meeting," he added. "Maybe if they (council members) would have said it was not a good idea, but they didn't turn it down right away. I wish there had been more discussion."
Mayor Bill Ross, who implemented the resolution, said the offer to guarantee a portion of the mortgage was similar to other cities' efforts to help administrators with moving costs but was not part of Rath's original hiring contract.
Ross said he spoke about the idea with some aldermen, who viewed the guarantee as a way to help Rath fulfill his requirement to live in the City of Monroe within six months of being hired.
"We were going from the heart," Ross said.
Rath said he never requested the mortgage guarantee, and he doesn't expect any "special favors" from the city.
"I'm not better than anyone else," he said.
A recent foreclosure on a house that Rath had for lease prevents him from getting a conventional home loan, he said.
The foreclosure was not forced, and Rath said he was not deficient in his payments, but the bank had to use the foreclosure procedure to retake the house.
Now, with newly implemented banking practices, lending institutions rely only on "the numbers" for approving a loan, he said.
"It's not like back then, when banks could look at your character and job position when considering a loan," he said.
Rath said he and his wife will continue as they have from the beginning of his hiring - searching for a home to suit their family of eight.
For financing, Rath said he's even asking friends and family to be co-signers - but not the city.