By Kim McDarison
The Fort Atkinson City Council in two separate actions Tuesday approved a two-year loan in an amount not to exceed $235,000 to purchase a dump truck, and a 10-year loan in an amount not to exceed $675,000 for street improvements, with those monies focusing largely on Industrial and Summit drives.
Dump truck
City Clerk and Finance Director Michelle Ebbert reminded council of a meeting in February at which time she was given authorization by council to solicit banks for loan opportunities relating to the purchase of a tandem axle dump truck with a straight plow and sander.
Following that authorization, she said, she inquired about loan opportunities with three local banks, including Badger Bank, Johnson Bank and Premier Bank, and through the Board of Commissions of Public Lands/State Trust Fund Loan.
Ebbert further noted that the amount of the loan initially considered was $200,000. Since February, she said, she had become aware that quotes for the equipment requested by the city’s public works department were coming in higher than initially anticipated. A loan therefore was being sought in an amount not to exceed $235,000, she said.
Newly promoted Department of Public Works Superintendent Tom Williamson, who formerly served the city as the assistant superintendent of that department, noted that the truck requested by the department comes with a “bare bones” price tag of $110,000. Attachments such as the plow and a salt box come at an additional cost of approximately $100,000. A control system for the truck will also be required, he said. Williamson said he was experiencing some delays in receiving quotes from the truck vender, so he could not yet provide a complete cost estimate for the truck and equipment, but, he said, he was envisioning something in the neighborhood of $225,000.
Ebbert said when she initially inquired with the lending institutions, she was looking at a loan for the public works capital equipment acquisition of $200,000, and Premier Bank provided terms offering the lowest interest rate at 1.05% for the two-year contract.
She had since engaged in further discussions with Premier Bank and was able to report, she said, that would the city require a loan adjustment up to $235,000, Premier Bank would offer the same loan terms.
Ebbert said once a more accurate quote was received from the truck vendor, she would return to council for its approval before pursuing the loan in the required amount.
Street Improvements
Ebbert noted that council in February also gave its authorization for city staff to explore loan options for street improvements within the city’s industrial parks.
In February, Ebbert reminded the council that in March, the city had been approved to receive funding through a state Department of Transportation (DOT) administered program to help pay for a multi-road project within two of the city’s industrial parks.
Those monies would come through the Multimodal Local Supplement (MLS) program, which, according to a letter from the DOT, is a one-time funding initiative offering up to $75 million for multimodal local system transportation projects that have demonstrated an impact on the local government’s economy.
The program reimburses a percentage of funds used to improve qualifying local transportation infrastructure projects.
In March, the city was approved to receive $388,000 from the program, which represents 48% of the total cost of the city’s approved road improvement project.
In February, City Engineer Andy Selle explained that to remain eligible to receive the grant funding, the full project must be completed within the next six years.
To that end, city staff explored a second loan in an amount not to exceed $675,000. The same three banks — Badger, Johnson and Premier — and the state-sponsored trust fund, were again asked to submit funding plans, with each providing interest rates for a 10-year loan. Again, Ebbert and Selle said, Premier Bank offered the lowest interest rate of 1.55%.
The loan comes without penalty should the city opt for early payoff, Ebbert added.
Selle noted that a bidding process finalizing costs associated with the street improvement project would begin and he would return to council with those numbers for its approval.
This post has already been read 1053 times!
