Debt Cap Changes Advance Out Of Beaver Dam Administrative Committee

(Beaver Dam) The Beaver Dam Administrative Committee Monday night signed-off on a change to the city’s debt policy that would allow it to be adjusted automatically for inflation. In 2010, city officials voluntarily adopted an ordinance that limits borrowing for capital projects and infrastructure improvements at $1.6-million dollars. Alderman Ken Anderson requested the agenda item be placed on this week’s Administrative Committee meeting, noting that the debt cap has not changed since its adoption. The committee accepted the recommendation of Finance Director John Somers in tying the annual increase to the state’s Expenditure Restraint Program. Other options included connecting the increase to the Consumer Price Index or increases in the tax levy as measured by new construction. The Expenditure Restraint Program combines both. If annual adjustments had been in place since 2010, the $1.6-million-dollar debt cap would be $1.95-million dollars today. With passage in committee, the debt cap ordinance amendment is expected to be considered by the full common council at an upcoming meeting.