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Wakefield approves up-to-$300,000 internal loan to finance new street sweeper
Summary
The Wakefield City Council approved an internal loan of up to $300,000 from the Electric Fund to the Street Fund at 3.58% interest for a five-year term to finance an Elgin street sweeper; unanimous vote of members present.
The Wakefield City Council on Dec. 10 approved a loan of up to $300,000 from the Electric Fund to the Street Fund to finance a recently purchased Elgin street sweeper. The council set the interest rate at 3.58% and approved a five-year amortization with annual payments.
Administrator Mike Mogus told the council he consulted with auditor Kyle Overturf on the appropriate interest rate; the council reviewed five-, seven- and ten-year amortization schedules before moving forward. Council Member Dolen moved to approve the loan and Council Member Hansen seconded; the motion carried with Dolen, Geiser and Hansen voting aye (Council Member Matt Brenn was absent).
Council members said using an internal loan preserves cash flow while keeping the equipment in service. The city did not specify the exact annual payment amount in the meeting materials; the clerk or finance staff will finalize amortization details consistent with the five-year schedule approved by the council.
The council took the loan vote during its regular meeting; the city announced a working retreat for Jan. 7, 2026 and will continue routine budget and finance work at future meetings.
