Impact of debt on taxes will be less that initially thought
By Jason Arndt
Staff Writer
The Burlington Common Council authorized borrowing nearly $1.5 million for flood damage costs at its meeting Tuesday after learning the tax impact of the loan will be less than anticipated.
At an October Committee of the Whole meeting, initial tax impact projections showed an increase of 24 cents on the mill rate through 10 years, but will be closer to 13 cents in the 10-year amortization.
City officials were assisted by Ehlers, Inc., which sought bids for the general promissory note, and came back with six options.
Of the six options, the city chose Bank of Kansas as the seller of the bonds. Bank of Kansas operates in Wisconsin and conducts business locally with Community State Bank.
Approval of the loan comes after the city was denied federal disaster aid to repair or replace damaged infrastructure from the July flood.
Damaged infrastructure includes phone and computer systems at City Hall and the police station and other items related to the July flood.
While damages are estimated at $1.8 million, the city received $105,000 from an insurance settlement to address some water/sewer backups and replacement of tools.
Additionally, the city is still waiting the outcome of a Department of Transportation grant, which goes toward reimbursement for the repair of a sinkhole.
To read the full story, including other action from the Nov. 21 Common Council meeting, see the Nov. 23 edition of the Burlington Standard Press.
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