MONROE - In mid-October, city aldermen agreed to purchase a 98-acre parcel of land commonly referred to as "The Dolan Property" with cash on hand in order to meet the sale deadline, noting that the source for replenishing the funds would be agreed upon later.
On Tuesday, the state Board of Commissioners of Public Lands released a statement outlining its approval of a $1.85 million State Trust Fund Loan to the city of Monroe for purchase of the land, which is designated as Tax Increment District 9 along Wisconsin 81 and County N.
City Administrator Phil Rath said the one-page application simply asked the applicant to identify need and cost. The loan would have a 20-year life with 4 percent interest but has no initial fees and can be repaid early without a penalty.
"If the TIF does really well and starts accruing additional revenue, it could be paid back sooner," Rath said.
He added that because the loan was approved quickly, the temporary decrease of the city's general fund should not affect its credit rating. Council members had voiced concerns over the drop below 25 percent impacting the amount the city would have to pay on its current borrowing and the risk of a natural disaster.
According to the press release sent by Executive Secretary Jonathan Barry, board members Wis. Attorney General Brad Schimel and Secretary of State Doug La Follette voted in favor of the loan, among others totaling more than $14 million. Fellow commissioner State Treasurer Matt Adamczyk voted against the loans.
The program supports itself without taxpayer funding. It contributes 96 cents per dollar of interest on loans to public school districts, and funds made in 2017 have given state school libraries $32.1 million in materials.
The Monroe Common Council was meant to vote on whether to accept the loan as a method of funding Tuesday during its first proceeding of December, but the meeting was cancelled due to a lack of attendance. It has been rescheduled for Monday.
On Tuesday, the state Board of Commissioners of Public Lands released a statement outlining its approval of a $1.85 million State Trust Fund Loan to the city of Monroe for purchase of the land, which is designated as Tax Increment District 9 along Wisconsin 81 and County N.
City Administrator Phil Rath said the one-page application simply asked the applicant to identify need and cost. The loan would have a 20-year life with 4 percent interest but has no initial fees and can be repaid early without a penalty.
"If the TIF does really well and starts accruing additional revenue, it could be paid back sooner," Rath said.
He added that because the loan was approved quickly, the temporary decrease of the city's general fund should not affect its credit rating. Council members had voiced concerns over the drop below 25 percent impacting the amount the city would have to pay on its current borrowing and the risk of a natural disaster.
According to the press release sent by Executive Secretary Jonathan Barry, board members Wis. Attorney General Brad Schimel and Secretary of State Doug La Follette voted in favor of the loan, among others totaling more than $14 million. Fellow commissioner State Treasurer Matt Adamczyk voted against the loans.
The program supports itself without taxpayer funding. It contributes 96 cents per dollar of interest on loans to public school districts, and funds made in 2017 have given state school libraries $32.1 million in materials.
The Monroe Common Council was meant to vote on whether to accept the loan as a method of funding Tuesday during its first proceeding of December, but the meeting was cancelled due to a lack of attendance. It has been rescheduled for Monday.