For the third year in a row, Shawano County is preparing to borrow funds for capital improvement projects, road construction and road maintenance projects as a way to get around state spending limits.
The executive committee voted Oct. 21 — and the county board is expected to adopt the same Oct. 28 — to borrow up to $2.5 million.
“We take it out for a few months, pay it off within a month at very little interest,” said Nichole Zuehl, finance director.
She said the money would be borrowed from Premier Community Bank at a rate of 5.5%. The three-month loan would be paid off within 30 days, costing the county not quite $12,000 in interest.
The borrowing for capital projects is a workaround that allows the county to borrow to meet its operational needs without exceeding the levy limits imposed by the state. In the budget, the money is noted as debt service, not operational.
kpasson@newmedia-wi.com
