The Beaver Dam Common Council approved obtaining a $170,000 loan through the Board of Commissioners of Public Land State Trust Fund Loan Program to cover budget requests on Monday night.
City Administrator John Somers told the council that this is a short-term borrowing process.
When the council adopted the 2018 budget in November, Somers explained that the money the city needs to fall into state compliance could be borrowed later this year and then the borrowed funds could be repaid in early 2018. The early payment could be considered debt service, which would be exempt from the Expenditure Restraint Program calculations, according to Somers. There would be interest on borrowing the funds for the two-month period.
The resolution was approved with one “no” from City Council Member Mick Fischer.
Beaver Dam residents are going to see a 2.4 percent tax increase in next year’s budget, which calls for a mill rate of $10.16 per $1,000 of valuation.
The net tax levy for all general city purposes stands at $10.3 million, amounting to a $402,000 increase over 2017. The total budget for general city purposes is set at more than $16 million — a 4.1 percent increase compared to last year. Last year’s mill rate was $9.92 per $1,000 of valuation.