Committee approves using LATCF funds to start jail HVAC work; borrowing left as option

ASHLAND, Wis. — The Ashland County Finance and Economic Development Committee approved a motion to fund the county jail’s HVAC replacement using available LATCF funds (federally sourced local assistance) with the option to borrow later if needed. Committee members discussed payment timing after the county received a contract proposal with payment terms tied to equipment delivery and invoicing. Contractor representatives confirmed invoices typically are issued when equipment arrives at the job site, and the vendor indicated it could extend invoice timing if the county needed additional flexibility. Committee members weighed options including paying with cash reserves, using LATCF funds now and borrowing later, or borrowing immediately to preserve liquidity. One member noted the LATCF balance was earning interest of about 4.75% while loan rates were roughly 5.25% for short-term borrowing — a small interest-cost tradeoff — and recommended keeping cash if feasible given uncertainties in the budget environment. After discussion, Blake Ellefsen moved to use LATCF funds to pay for the sheriff’s HVAC project, with the option to borrow funds later if needed; the motion passed by voice vote. The committee also asked staff to explain details about the contractor’s payment schedule so the county can determine whether an upfront equipment payment will be needed and how much interim borrowing (if any) would be required. The committee’s action approved funding approach; the contract award and project scheduling remain subject to normal procurement steps.