The Fort Dodge City Council moved Monday to use a surplus in the sewer account to pay higher than expected costs of building the Fort Dodge Fiber network.

In 2021, the council borrowed $33,355,000 to pay for building the fiber optic utility. That loan will be paid off with revenue generated by Fort Dodge Fiber, not property taxes.

That roughly $33 million has proven to be not enough to finish the job because of increased material and contractor costs, according to a report to the council from City Manager David Fierke.

To address the shortfall, the council voted to loan $3,165,000 from the sewer fund to Fort Dodge Fiber. The loan has a 5.25 percent interest rate.

Fort Dodge Fiber will have to repay the loan to the sewer fund in 2026 or 2027.

Councilwoman Lydia Schuur was absent from the otherwise unanimous vote to approve the loan.

In other business, the council purchased a John Deere loader with snow plow from Murphy Tractor & Equipment, of Fort Dodge, for $287,750.