(Beaver Dam) The Beaver Dam Common Council Monday night approved a resolution to exceed their debt cap policy. Officials last year approved changes to the voluntary policy, moving from a fixed dollar amount to 65-percent of total debt allowed by the state.
The city is in the process of bonding for $16-million dollars to cover the costs for this year’s major projects and equipment purchases. Around $4-million dollars can be attributed to the annual Capital Improvements Plan while the rest of the borrowing is for the relocation of the Department of Public Works facility.
Alderman Ken Anderson cast the only vote against the resolution questioning why the city would set a policy that it does not intend to follow.
Administrative Committee Chair Jaci Shelton noted that the language of the policy allows the council the flexibility to exceed the cap with three-fourths vote.
Dave Ferriss of Ehlers, the city’s financial advisor, says that Beaver Dam’s policy is more restrictive than some other communities, which he says could hurt the ability to borrow.
The waiver of the debt cap policy is for one year but would require belt-tightening in next year’s budget for the city to regain compliance with the policy. Beaver Dam currently has $45-million dollars in debt on the books with a remaining capacity of $24.4-million dollars.
In January of last year, the common council approved the $1.75-million-dollar purchase of the former Evoqua building. The 89-thousand square-foot structure at the end of Commercial Drive is being repurposed as part of a $10.2-million-dollar plan to relocate DPW from South Center Street to the Lakeside Business Park.
The current facility has space and safety problems in addition to concerns with code compliance and contaminated soil. The building was purchased with money from the general fund, but city coffers will be replenished with the borrowing.
The DPW plan was initially estimated to cost taxpayers $60-per year for every one-thousand dollars in property value. The purchase of the property removed $18-thousand dollars from the tax rolls resulting in an additional impact of $1.43-per thousand. While the bulk of the DPW facility is expected to move to the new location, the old location may be retained for some services.
Beaver Dam’s 2022 Capital Improvement Plan, meanwhile, totals $6.6-million dollars in projects but only requires $4-million dollars in actual borrowing. The remaining $2.6-million is being covered with a combination of grants and Tax Increment Finance District revenues.
The bulk of this year’s CIP, over $4.5-million dollars, is for street projects. That includes $1.9-million dollars for the reconstruction of East Davis Street between Spring and University. Another $390-thousand dollars is being directed to complete the delayed reconstruction of South Spring Street from Mill Street north to Park Avenue, which already saw $1.18-million dollars borrowed with last year’s CIP. There is $590-thousand dollars identified for Walnut Street from McKinley to the cul-de-sac. Other street projects include the $450-thousand dollar reconstruction of Haskell Street; the $750-thousand dollar repair of Third Street; and $180-thousand for general street repairs.
The Department of Public Works is also getting $340-thousand dollars for trucks and related equipment. The Fire Department is being allotted $275-thosuand to replace an ambulance. The Police Department is getting for $264-thousand dollars to complete their outdoor shooting range and bolster their radio communications.
Also in the CIP, the Parks Department is getting $1.1-million in total, which includes $100-thousand dollars to restore the lagoon walls at Swan Park. The pavilion at Tahoe Park, the playground equipment at Lakeview Park and Phase Two of Rotary Park are each tabbed to receive $50-thousand.
