By Michael S. Hoey
The Town of Delavan board approved the second half of the borrowing it undertook this summer to complete several projects on Aug. 20. The board approved the issuance and sale of $5.7 million in general obligation promissory notes.
Last month the board approved the sale of $9.2 million in general obligation bonds to be paid over 20 years to cover the expense of building the new fire station and refinancing other existing town debt.
The notes approved this month will cover the costs of renovating the Community Park building and improving the boat launch area, resurfacing North Shore Drive, resurfacing some parking lots, and purchasing dredging equipment for the Mound Road sediment ponds, a new plow truck and ambulance, some tractors and mowers and a chipper.
The notes approved most recently are for 10 years but include a balloon payment at its end, so Administrator John Olson said the town will look at refinancing before that payment comes due. Olson said the sale of the notes was structured that way to help spread the impact of this summer’s borrowing out for the taxpayer.
Room taxes to be re-allocated
The board approved an ordinance allocating room taxes in a different way than what had been done under the previous ordinance. The change was necessary due to a change in state law, according to Supervisor Kevin Kiekhafer.
The new ordinance language adjusts the allocation/split of room taxes per state law, according to Olson.
The prior ordinance language required a split of room taxes collected between 62 percent to the Lake Committee, 26 percent to the Tourism Committee, and 12 percent to the General Fund.
Beginning in 2017, state law required a portion of room taxes collected be sent directly to a Tourism Entity. The town’s tourism entity is the “Friends of the Park.” Since Friends of the Park now receives the Tourism dollars directly, it is not necessary for the Town to allocate 26 percent of the remaining amount of room taxes also to tourism.
The ordinance was changed to allocate or split the remaining amount only between Lake Committee at 89 percent and the General Fund at 11 percent.
Capital expenses approved
The board approved capital expenditures of $14,000 for new AED units, $14,500 for a new furnace, $8,600 for new garage doors, and $7,500 to make repairs to the ramp at the entrance to Town Hall.
The ramp outside Town Hall will be repaired rather than replaced because there are many more permitting requirements that would have to be met by replacing the structure. Olson said repairing the ramp will cost less than replacing it, in part because the work can be done by town staff.
