By Dave Fidlin
Correspondent
Plans are in motion in Whitewater to borrow $5.42 million in bonds to help see through this year’s capital projects and refinance debt taken out a year ago.
Finance Director Steve Hatton recently reviewed with a city panel the assorted capital improvement tasks on the docket as 2020 continues to unfold. Each of the projects was approved in late 2019, alongside the Common Council’s adoption of this year’s budget.
The list of 2020 capital projects, totaling $2.63 million, includes a number of utility-related projects linked to road reconstruction. Hatton hashed over the projects with members of the Finance Committee at a meeting April 28.
One area that will receive a sizable amount of capital improvement dollars this year is Clay Street. Funds have been earmarked for road reconstruction projects alongside water, sewer and stormwater improvements. Also in the mix is a stormwater project on Walworth Avenue and Court Street.
Additionally, the city has allocated capital funds for several expenditures linked to the local fire and rescue department, with new fire hose equipment on the docket, alongside radio consoles.
The city’s new set of borrowing plans, which take advantage of low interest rates in response to the coronavirus, also are aimed at tackling the year-old debt taken out a year ago, totaling $2.28 million.
Last July, the city issued a $2.25 million one-year note to finance its 2019 capital improvement plan.
The city’s next step in taking out the fresh set of $5.42 million bonds for the borrowing process is to enlist the services of an underwriter.
“We continue to do this in a way that is clean and compliant with law,” Hatton said.
Potential budget impact of COVID-19
The Finance Committee also discussed how COVID-19 could impact the city’s municipal budget in the road ahead. Echoing a sentiment shared elsewhere, City Manager Cameron Clapper reiterated there are a number of unknowns still on the horizon — including, of course, when businesses will begin reopening.
While the city itself is not expected to encounter adverse financial challenges for the duration of 2020, Clapper and Hatton said the true financial pinch could come in 2021.
“I think there are going to be some major stops, in terms of forward-moving progress with different projects and activities,” Clapper said. “We’re just going to be holding our own with basic maintenance, letting this ride for a bit.”
For his part, Hatton said his office is tracking all municipal expenses related to the pandemic, which, as of the committee meeting, clocked in at $82,000. Federal reimbursement through FEMA is anticipated, Hatton said.
Economic closures impact
Additionally, the Finance Committee discussed the potential impacts of university closures on the city’s economy. Council member McKinley Palmer, who sits on the Finance Committee, said he would advocate for municipal officials engaging in conversation with University of Wisconsin-Whitewater administrators.
“I think it’s a very important issue,” Palmer said. “I think we should consider the impact it could have on our city.”
As with most colleges and universities across the U.S., UW-Whitewater is finishing out the spring semester virtually. A decision on whether in-person courses will occur in the fall is still pending.
