The Town of Westport passed a resolution to authorize the borrowing of $1.6 million from Monona State Bank Monday to help fund road improvements throughout the town.
Administrator Tom Wilson said the town had been pursuing such a loan for months.
“A few months ago,” Wilson said, “the board wanted to proceed with financing for road-improvement projects and find out what the costs on a seven-year note would be…because their concern was what it was going to add (to our debt).”
A municipal advisor firm, Ehlers and Associates, was asked to calculate the cost of four bids from various financial institutions and then bring their findings back to the town board.
The firm determined that the lowest bid came from Monona, with a fixed rate of 2.585 percent.
“Monona State Bank’s bid was very good,” Municipal Advisor David Ferris said, “and should save the Town approximately $20,714 in total payments over the 7 years.”
Wilson said the loan will help fund upcoming reconstruction projects that will be taking place on Gerend Road, Labuwi Lane, Lavin Way, Woodland Drive, Gilkeson Road, Huntingwood Lane, Rainbow Road, Simon Trail, Wakanda Drive, Auchter Lane, Maria Way and Cobblestone Lane.
The administrator said the town has already reached out to the lending institution, and thanked it for its generous offer.
“They’re our bank,” Wilson said, “and they want to stay our bank clearly.”